Transferring Money from NRO to NRE: A Guide

The NRE and NRO accounts are used by NRIs for managing expenses in India. Many banks now allow transferring funds from an NRO to an NRE account, which was previously restricted by the RBI. Such transfers are useful for paying investments and expenses abroad in preferred currencies, enabling complete repatriation flexibility.

There are various scenarios where transferring funds to an NRE account becomes necessary. For instance, when you need to cover expenses and investments abroad using your preferred currency, it becomes crucial to transfer your earnings in Indian rupees and withdraw them. It is advisable to maintain an NRO account solely for collecting Indian revenue, while managing investments in an NRE account.

To transfer funds from an NRO to an NRE account, certain documents are required. These include a signed cheque for the transfer, FEMA declaration, documentary evidence of the source of funds, Form 15CA, and Form 15CB (certified by a CA).

Here is a simplified process for transferring funds from NRO to NRE using Net Banking:

  1. Log in to your account and select “PAY”.
  2. Choose “Transfer to NRE” and select your NRO savings account.
  3. Select the NRE account for credit and specify the source of funds.
  4. Enter the transfer amount and upload the necessary supporting documents.
  5. Accept the terms and conditions, enter the OTP (One-Time Password), and confirm your payment request.
  6. The funds will be transferred once the documents are verified.
  7. Please note that it is essential to consult your bank for specific procedures and requirements as they may vary.
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