How to Transfer Money from NRO to NRE Account?

Is it possible to transfer money from NRO to NRE account?

You are allowed to transfer money from NRO to NRE account up to USD 1 million in a calendar year

NRIs manage their expenses in India through two accounts- the Non Resident External (NRE) account and the Non Resident Ordinary (NRO) account. The NRE account is meant for transferring foreign earnings to India. On the other hand, NRO account is used to manage income earned in India.

How to transfer money to NRE account? How to transfer money to NRE account from USA? These are common questions many NRIs have. There are several ways in which you can transfer money to a NRE account from abroad. The money is deposited in Indian rupees.

Another question you may have is- can I deposit money in NRE account from India? You cannot transfer money to a NRE account from a savings account in India. However, you can transfer money from NRO to NRE account. You can also transfer money from one NRE account to another.

RBI announcement: On May 7, 2012 the Reserve Bank of India (RBI) permitted funds transfer from NRO to NRE account, subject to certain conditions. Before 2012, this was not permitted. The limit of money that can be transferred is USD 1 million in a financial year.

Pay your tax: Interest on NRO accounts attracts tax. On the other hand, interest on NRE accounts is tax free. So it is important to pay required taxes before you move funds from NRO to NRE account.

Documents required: To transfer funds from NRO to NRE account, the following documents are required.

  1. Signed cheque/ letter for funds transfer from NRO to NRE savings account.

  2. FEMA declaration. This is a document which says that you are eligible to transfer funds from a NRO to a NRE account according to provisions of the FEMA law.

  3. Documentary evidence of source of funds

You need to submit form 15CA and 15CB. Form 15CB needs to be obtained from the chartered accountant. This shows the source of your funds. Form 15CA can be filled online.

Filling form 15CA: Filling form 15CA involves the following steps.

  1. Login to the Income Tax India website,

  2. Input your User ID ( PAN) and password

  3. After logging in go to the option- ‘E-file- Prepare and Submit Online Form (Other than ITR)’.

  4. Select form 15CA.

  • You will find instructions to fill the form

  • The form is in four parts- Part A, Part B, Part C and Part D.

  • Complete filling the part that is applicable to you.

  1. Once you have filled up the form, verify and submit

  2. Click on the form and take a printout. Also take a printout of the acknowledgement slip.

  3. Sign the filled up form and submit it to the bank in duplicate

It is recommended that you get in touch with a CA to understand the process. Understand the conditions carefully before you do a fund transfer.

Click here to get started with HDFC Bank NRI Account.

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.