NRO to NRE Fund Transfer: Ultimate Guide 2020

Too many questions surround the aspect of NRO to NRE Fund Transfer and make up the doubt pool of NRIs. The concept of NRO to NRE Money Transfer requires knowledge of both these NRI Banking Accounts in particular and understanding the underlying aspects associated with the fund management of these accounts. So, in this article we will guide you through the prospect of fund transfers from NRO to NRE Account.

NRO to NRE Fund Transfer: Ultimate Guide 2020
NRO to NRE Fund Transfer: Ultimate Guide 2020

Fund transfer from NRO to NRE Account: Can an NRI do that?

Yes! An NRI can transfer funds from NRO to NRE account after providing proper documentation stating that all the taxes are paid on the funds being transferred to the NRE Account because both the principal and interest earned on NRE Deposits are fully and freely repatriable. Transfer of funds between these accounts are subject to taxation. Only after you have paid all your taxes on the funds in NRO Account, can you transfer it to the NRE Account.

Another doubt that can arise here will surround the topic of NRO to NRE Fund Transfer Limit. Is there any fund transfer limit while transferring funds from NRO to NRE. If so, what is it? We will cover this aspect in the next segment.

NRO to NRE Fund Transfer Limit

You can repatriate funds from NRO accounts only up to a maximum limit of USD 1 million per financial year as allowed by Reserve Bank of India (RBI). The funds are not freely repatriable. The interest earned on NRO Deposits is taxable in India at 30% along with surcharge and education cess deducted at the source of interest earned in India. 

To understand in detail about the aspect of NRO to NRE Money Transfer, we need to go through an overview of these accounts.

NRE to NRO Fund Transfer

What is NRO and NRE Account: An Overview

Let’s get to the crux of the NRO and NRE Account to understand about their usage and benefits in detail:

  • Non-Resident Ordinary (NRO) Account: The NRO account can be opened for the purpose of maintaining the income earned from India such as income from rent, pension, etc. The repatriation of the money in the account can be done up to a maximum of 1 million USD per financial year. Note: 30% tax + surcharge + education cess will be deducted at the source of interest earned in India
All you ever wanted to know about NRO Accounts
  • Non-Resident External (NRE) Account: The NRE account can be opened for the purpose of maintaining the income earned outside India with tax free interest (upto 7.95%*) on Fixed Deposits. Both the principal amount and interest earned are completely repatriable from India. 
NRE Account at a glance
Factors to considerNon Resident Ordinary (NRO) AccountNon Resident External (NRE) Account
PurposeFor income earned from India (pension, rent etc.) For income earned outside India
CurrencyINRINR
Joint Account HolderBoth NRIs as well as ResidentsOnly NRIs
Tenure of Deposits7 days to 10 years1 year to 10 years
InterestUp to 7.30%*Up to 7.81%*
Repatriation(transfer of money from Indian bank account to foreign bank account) Up to a maximum of 1 million USD per financial yearBoth Principal (money invested initially) and Interest completely repatriable
Tax DeductionsTax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in IndiaNo tax

Benefits of NRO/NRE Accounts for NRIs

Non Resident Ordinary (NRO)Non Resident External (NRE)
-Maintain the income generated in India from sources such as pension, rental income etc without any hassle
-Earn interest on the funds in the account up to 7.30%*
-Invest in opportunities such as Mutual Funds, IPOs etc.
-Link NRO Account to a PIS Account and trade in Indian stocks
-Convenient Banking Experience
-Park money earned abroad and earn tax-free interest up to 7.81%*
-24*7 withdrawals using International Debit Cards
Invest in opportunities such as Mutual Funds, IPOs etc.
-Link NRE Account to a PIS Account and trade in Indian stocks
-Convenient Banking Experience
-Repatriate funds abroad fully and freely
NRI Accounts Overview: Benefits and Taxation

How to open an NRI Bank Account?

Every major bank in India has its own unique process for opening NRI Bank Accounts. Here is a grid with the process to open NRI Bank Accounts in the top banks of India: View Grid

Document Checklist: NRI Account

Can I transfer money to NRO Account from abroad?

Yes. NRIs can transfer money to NRO Account from abroad. To understand this part we need to explore the permissible credits in an NRO Account.

Credits refer to the money that can be deposited in an account. The permissible credits in an NRO Account are:

  • Inward Remittances from outside India
  • Interest earned on the NRO account balance
  • Gifts in INR or loans taken from any resident or NRE/NRO account holder
  • Transfers from your own or any other NRE/NRO account
  • Any income generated in India for which the taxes are not deducted at source

Can I transfer money from NRO Account to foreign bank?

The process of transferring money from NRO Account to foreign bank is called Repatriation. A similar question put up by NRIs is “How to repatriate money from NRO Account”. Mentioned below is the process, limit and the documents required for fund transfer from NRO to NRE Account:

Accounts ProcessLimit
NROAll the following documents are needed to be submitted at the Bank Branch (in India). You can either submit it when you arrive here or download it online and send the signed copies to bank branch via courier:

Form 15CA (The purpose of this document is to ensure that taxes are collected on the funds before they are remitted abroad as it becomes difficult to recover taxes at a later stage) 
(Fill the form online on NSDL and print the acknowledgement)

Form 15CB (Certificate of an Accountant) (The Accountant fills the form and shares it with the account holder. The account holder then sends it to the bank via courier) 

Form A2 (Form for remittance)

Request Form from the Bank (for details to debit funds from your account)
USD 1 million

Open NRI Bank Account Now

NRO to NRE Fund Transfer: FAQs

NRO to NRE Fund Transfer Axis Bank

NRO to NRE Fund Transfer in Axis bank can be done after providing proper documentation stating that all the taxes are paid on the funds being transferred to the NRE Account.

NRO to NRE Fund Transfer ICICI Bank

NRO to NRE Fund Transfer in ICICI bank can be done after providing proper documentation stating that all the taxes are paid on the funds being transferred to the NRE Account.

NRO to NRE Fund Transfer SBI

NRO to NRE Fund Transfer in ICICI bank can be done after providing proper documentation stating that all the taxes are paid on the funds being transferred to the NRE Account.

Can my parents deposit money in NRO Account?

Yes. Your parents can deposit money in your NRO Account as gifts in INR or loans taken from any resident or NRE/NRO account holder is allowed in an NRO Account.

Responses (21)

  1. Avatar
    yeezy boost 350
    1 day ago

    Thank you a lot for providing individuals with a very marvellous chance to discover important secrets from this web site. It’s always so pleasant plus packed with a lot of fun for me personally and my office peers to search the blog on the least 3 times a week to see the newest stuff you have. And of course, I am also always amazed with all the exceptional tricks served by you. Some 1 points on this page are in reality the simplest I’ve had.
    yeezy boost 350

  2. Avatar
    lebron james shoes
    4 days ago

    I intended to send you this little remark so as to give thanks the moment again for your fantastic thoughts you’ve featured in this case. It’s so extremely generous with you to allow unreservedly all most of us would have supplied for an ebook to help make some money for themselves, primarily seeing that you could possibly have tried it if you ever decided. Those concepts additionally worked as the fantastic way to fully grasp other people have similar keenness really like my own to understand lots more concerning this issue. I think there are millions of more fun times up front for people who find out your blog post.
    lebron james shoes

  3. Avatar
    curry 7 shoes
    4 days ago

    I and also my buddies happened to be reading the great tips and hints located on your web page and all of the sudden came up with an awful suspicion I had not thanked the web site owner for those strategies. All the people were definitely as a result very interested to read them and already have seriously been loving those things. We appreciate you getting really thoughtful and also for selecting varieties of useful subjects millions of individuals are really desperate to learn about. My very own sincere apologies for not saying thanks to earlier.
    curry 7 shoes

  4. Avatar
    cheap jordans
    4 days ago

    I and also my guys were found to be analyzing the nice hints found on your web page and so instantly came up with a terrible suspicion I never thanked the website owner for those strategies. All of the young men happened to be for this reason passionate to read through them and have in effect honestly been loving these things. Thank you for turning out to be simply helpful and also for obtaining such incredible areas millions of individuals are really desirous to know about. My honest regret for not expressing appreciation to you earlier.
    cheap jordans

  5. Avatar
    cheap jordans
    4 days ago

    I just wanted to send a small remark in order to thank you for these marvelous tips you are posting on this site. My extensive internet research has at the end of the day been paid with professional information to write about with my visitors. I ‘d declare that most of us site visitors are truly fortunate to live in a very good site with so many marvellous individuals with good hints. I feel extremely lucky to have used your webpages and look forward to really more pleasurable times reading here. Thank you once more for all the details.
    cheap jordans

  6. Avatar
    yeezy
    4 days ago

    Thank you so much for giving everyone an extremely memorable opportunity to read from here. It can be very good plus jam-packed with fun for me and my office colleagues to visit your blog at minimum thrice weekly to find out the latest stuff you have. Of course, I’m so always fulfilled for the magnificent techniques served by you. Certain 1 areas in this posting are particularly the most efficient we have had.
    yeezy

  7. Avatar
    supreme clothing
    4 days ago

    I in addition to my pals have already been going through the great thoughts located on your website and unexpectedly got a horrible suspicion I never thanked the site owner for those secrets. All the young men became for that reason glad to see them and already have definitely been using these things. Appreciation for getting very accommodating and also for figuring out varieties of notable useful guides millions of individuals are really desirous to discover. My very own honest apologies for not expressing gratitude to you sooner.
    supreme clothing

  8. Avatar
    yeezy wave runner 700
    4 days ago

    I and also my guys were found to be viewing the nice suggestions located on your site and then suddenly I got a terrible suspicion I had not thanked the web blog owner for them. All of the ladies had been for that reason passionate to read all of them and already have quite simply been tapping into these things. Appreciation for actually being simply helpful as well as for selecting these kinds of great information millions of individuals are really eager to be informed on. Our own honest regret for not saying thanks to earlier.
    yeezy wave runner 700

  9. Avatar
    nike lebron shoes
    4 days ago

    Thank you a lot for giving everyone an extremely remarkable chance to read critical reviews from this website. It really is very cool and also full of amusement for me and my office fellow workers to visit your site at the very least thrice in one week to learn the latest tips you will have. And definitely, I am just at all times fascinated with all the breathtaking inspiring ideas you give. Some 1 areas in this post are completely the simplest we have all ever had.
    nike lebron shoes

  10. Avatar
    ggdb
    4 days ago

    I as well as my buddies happened to be looking at the nice pointers located on your web blog and suddenly came up with a horrible suspicion I never expressed respect to the web site owner for those secrets. All the guys are actually so glad to see all of them and have certainly been using them. Appreciation for getting quite kind and for obtaining this sort of superior themes millions of individuals are really wanting to be informed on. Our sincere regret for not expressing gratitude to sooner.
    ggdb

  11. Avatar
    hermes handbags
    6 days ago

    My spouse and i felt now ecstatic Emmanuel managed to carry out his investigation from your ideas he got using your site. It’s not at all simplistic just to be giving out facts which usually most people could have been trying to sell. And we fully grasp we have got the blog owner to thank for that. All the explanations you’ve made, the simple website navigation, the relationships you make it easier to engender – it’s everything terrific, and it is leading our son in addition to our family know that this content is cool, and that’s extremely mandatory. Thank you for all the pieces!
    hermes handbags [url=http://www.hermes-handbags.us.org]hermes handbags[/url]

  12. Avatar
    supreme shirt
    6 days ago

    I truly wanted to type a brief word in order to appreciate you for some of the pleasant facts you are writing at this website. My particularly long internet search has at the end been paid with pleasant know-how to talk about with my companions. I would suppose that we visitors are extremely lucky to be in a notable site with many marvellous people with very beneficial strategies. I feel very happy to have discovered your webpage and look forward to plenty of more pleasurable minutes reading here. Thanks once more for a lot of things.
    supreme shirt [url=http://www.supremesclothing.us.org]supreme shirt[/url]

  13. Avatar
    jordan shoes
    6 days ago

    I wanted to write down a simple message in order to say thanks to you for those magnificent ways you are giving at this website. My incredibly long internet lookup has at the end of the day been honored with wonderful suggestions to exchange with my visitors. I ‘d express that many of us visitors are unequivocally lucky to dwell in a very good website with many perfect professionals with good solutions. I feel pretty privileged to have encountered the website page and look forward to tons of more fun minutes reading here. Thanks a lot again for a lot of things.
    jordan shoes [url=http://www.jordanstoreonline.com]jordan shoes[/url]

  14. Avatar
    longchamp
    6 days ago

    I’m writing to let you understand what a useful encounter my wife’s princess had checking the blog. She even learned several details, including what it’s like to have a very effective giving mindset to get the mediocre ones easily master a variety of complex matters. You actually exceeded visitors’ desires. Thank you for offering these priceless, dependable, explanatory and as well as fun tips about the topic to Gloria.
    longchamp [url=http://www.longchamphandbagsus.com]longchamp[/url]

  15. Avatar
    yeezy shoes
    6 days ago

    I and also my pals happened to be reading through the excellent tips and hints from the blog and the sudden came up with a terrible feeling I never thanked you for those secrets. Most of the people had been as a result very interested to learn them and have absolutely been having fun with these things. We appreciate you genuinely simply considerate as well as for settling on varieties of superb issues most people are really eager to be informed on. My personal honest regret for not saying thanks to earlier.
    yeezy shoes [url=http://www.yeezyshoes.in.net]yeezy shoes[/url]

  16. Avatar
    longchamp outlet
    6 days ago

    Thanks so much for giving everyone an extremely spectacular opportunity to read articles and blog posts from this website. It is often very great plus stuffed with a great time for me and my office friends to search the blog no less than thrice in one week to read the newest issues you have got. Of course, I’m so always fascinated with all the fantastic tricks served by you. Some 3 tips in this article are surely the finest we’ve ever had.
    longchamp outlet [url=http://www.longchampbagsoutlet.us]longchamp outlet[/url]

  17. Avatar
    yeezy boost 350
    6 days ago

    Thank you so much for providing individuals with remarkably terrific possiblity to read articles and blog posts from here. It really is so sweet plus jam-packed with a good time for me and my office mates to visit your blog at the very least thrice in one week to see the latest guidance you have got. And definitely, we are always impressed with the astounding concepts served by you. Some two points in this post are ultimately the most effective we have all ever had.
    yeezy boost 350 [url=http://www.yeezyboost350v2stores.us.com]yeezy boost 350[/url]

  18. Avatar
    hermes belts for men
    6 days ago

    I wish to express my passion for your kindness giving support to individuals that really need help on your niche. Your very own commitment to passing the message throughout became quite beneficial and has continually allowed most people much like me to get to their aims. This invaluable help indicates this much a person like me and still more to my fellow workers. Thanks a lot; from all of us.
    hermes belts for men [url=http://www.hermesbelt.us.org]hermes belts for men[/url]

  19. Avatar
    supreme hoodie
    6 days ago

    I not to mention my friends came reviewing the best tips and tricks from the website and so at once I had a horrible suspicion I had not expressed respect to the web blog owner for them. All the ladies became for that reason passionate to see them and now have actually been taking pleasure in these things. We appreciate you indeed being well kind as well as for picking out this kind of superior subject matter most people are really eager to know about. My very own sincere apologies for not expressing gratitude to sooner.
    supreme hoodie [url=http://www.supremes-clothing.com]supreme hoodie[/url]

  20. Avatar
    yeezy boost 350
    6 days ago

    I wish to show my affection for your generosity in support of those people that actually need help with in this theme. Your special dedication to getting the message along had become rather insightful and have enabled women like me to realize their dreams. Your entire warm and friendly suggestions implies so much a person like me and extremely more to my colleagues. Many thanks; from everyone of us.
    yeezy boost 350 [url=http://www.yeezy-350.us.com]yeezy boost 350[/url]

  21. Avatar
    Nycil Shelly
    2 months ago

    I wish to know if you are having tie up with any Public Sector Bank .
    And also which Bank .
    In case a Bank wishes to tie up then what is the process

Copy link