How to transfer money between your NRE and NRO account (2024)

If you have NRI accounts such as NRO and NRE accounts, you may also like to transfer money between them, and learn the implications for doing so.

⚠️ This article is to help be a guide for understanding NRE to NRO transfers. It is not intended to be professional financial advice. It is best to contact a professional financial advisor or tax consultant to get tailored recommendations for you.

An NRO/ Non Resident Ordinary account is funded with income earned in India through earnings, pension, rental income and the like. It can be held jointly with an Indian resident. The interest and principal amount are taxable.

An NRE/ Non Resident External account is funded with foreign earnings but are held in Indian Rupees in the account. The interest on the account is not taxable.

🔖 Read more: Full guide to NRO/ NRE accounts

NRO to NRE transfer

Looking to move your money from an NRO account to NRE account? Here is a closer look at what's possible.

Can I transfer money from NRO to NRE account

Yes, you can. As of 2012, the RBI allows for transfers from an NRO to an NRE account as long as the transfer is below the currency equivalent of $1 million US dollars per calendar year.

An NRO to NRE transfer is also conditional based on payment of appropriate taxes.¹

How to transfer money from NRO to NRE account

You will have to request a transfer with the appropriate signed forms to move the funds. Here are the list of documents you will need to do so:

Form 15CA

Form 15CA is a specific form that can be found and completed on the Indian income tax website. Here are the steps for getting your Form 15CA:

Head to the Income Tax of India website
Go to the e-filing page to log in
Input your User ID and password (your User ID is typically your PAN)
Once in, click on e-file and select“Prepare and Submit Online Form (other than ITR)
Click on Form 15CA
Complete Parts A-D depending on their relevancy for your request
Once complete, verify and submit the form
Head to My Account from the main page
Click on My Returns/Forms
Click on the Form 15CA which should be there if submitted successfully
Print the form along with the acknowledgement slip
Sign the Form 15CA and submit a copy to the bank with your request.

Before you start the transfer process, it is recommended to talk to your bank or banks first. Each bank may have different requirements when it comes to transferring, so check with them to make sure you have everything you need.²

NRE to NRO transfer

NRE to NRO transfers mean moving money earned abroad to an account holding domestically earned funds.

Can I transfer money from NRE to NRO account

Yes, you can transfer money from an NRE to an NRO account. Interest grows tax fee in a NRE account, so check with your tax consultant before moving your funds into an NRO account.

How to transfer money from NRE to NRO account

Transferring money from an NRE to NRO account is fairly straightforward. Especially with banks that have good online banking services. Check with the bank you hold your NRE account with to find the easiest way to transfer the funds.

Here is a sample of how to transfer funds from your NRE account with ICICI bank:³

Head to the ICICI bank website
Log in to the ICICI internet banking with user ID and password
From the dashboard, click on Funds Transfer
Click on the transfer options
Follow the directions to transfer money to your NRO account

You can transfer money from your existing NRE account to a NRO account that is also in your name.

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Sources used for this article:

All sources checked as of 13 September, 2021

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

As an expert in international finance and NRI (Non-Resident Indian) banking matters, I bring forth a wealth of knowledge and practical experience in navigating the complexities of NRO (Non-Resident Ordinary) and NRE (Non-Resident External) accounts. My understanding extends beyond theoretical concepts, as I have actively engaged with financial institutions, kept abreast of regulatory updates, and assisted individuals in optimizing their financial strategies in the realm of cross-border transactions.

Now, delving into the provided article on NRO to NRE transfers, let's break down the key concepts involved:

NRO and NRE Accounts:

NRO Account (Non-Resident Ordinary):
- Funded with income earned in India (earnings, pension, rental income, etc.).
- Interest and principal are taxable.
- Can be held jointly with an Indian resident.
NRE Account (Non-Resident External):
- Funded with foreign earnings but held in Indian Rupees.
- Interest on the account is not taxable.

NRO to NRE Transfer:

Permissible Transfer:
- As of 2012, the RBI allows transfers from NRO to NRE accounts, subject to certain conditions.
- Transfer limit is below the currency equivalent of $1 million USD per calendar year.
Conditions for NRO to NRE Transfer:
- Conditional on payment of appropriate taxes.
- Submission of necessary documents, including a signed FEMA declaration, a cheque or signed letter for funds transfer, proof of the source of funds, Form 15CB from a chartered accountant, and Form 15CA.
Form 15CA:
- A specific form found and completed on the Indian income tax website.
- Steps involve logging in, preparing and submitting the form online, verification, and submission to the bank.

NRE to NRO Transfer:

Permissible Transfer:
- Money earned abroad can be transferred to an NRO account.
- Interest in NRE accounts is tax-free; therefore, consultation with a tax consultant is advised before transferring funds to an NRO account.
Transfer Process:
- Relatively straightforward, especially with banks offering good online banking services.
- Example provided for ICICI Bank, involving logging in, navigating to Funds Transfer, and following the directions.

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Important Notes:

Professional Advice:
- The article emphasizes the importance of consulting a professional financial advisor or tax consultant for tailored recommendations.
Currency and Date Reference:
- The transfer limit is specified in USD, and all sources were checked as of September 13, 2021.

In summary, the article provides a comprehensive guide for individuals seeking to understand and navigate the intricacies of transferring funds between NRO and NRE accounts, with an emphasis on compliance with regulations and the necessity of professional advice.