Non-Resident Ordinary (NRO) accounts make it easy for you to manage Indian rupee income sources such as dividends, rent, and other revenues like profits obtained from an investment or sale of personal property in India. In this situation, both residents and non-residents in India can be joint account holders.
Nonetheless, one can only withdraw money in Indian rupees from an NRO account. Any money deposited in an NRO account cannot be easily exchanged to a different currency or transferred to another country.
NRO to NRE transfer:
Are you thinking of moving money from the NRO account to NRE? Well, you are not alone. Many people request such transfers almost every day.
Can I transfer money from NRO to the NRE account?
Yes, it is possible to transfer cash from an NRO account to an NRE (Non-resident External account) provided that the amount being transferred is less than the currency equivalent of $1 million US dollars in a year. Transfer of money from an NRO to an NRE is also dependent on the payment of required taxes
Steps on How to transfer money from NRO to NRE account
In order to initiate a transfer between the two accounts, you will need to request relevant signed forms for the transfer to be completed. Below are some of the documents you will need to provide:
- A dully signed FEMA declaration form
- A cheque comprising of the amount to be transferred or a signed letter indicating the amount you wish to move from NRO to NRE
- Proof of the source of funds
- Form 15CB from a chattered
- Form 15CA
It is important to understand that the signed letter can only be accepted if you hold your accounts in the same bank. All the documents must be submitted to the bank for the transfer process to take effect. You can always speak to your banks’ customer care service for more guidance.
NRE to NRO transfer
This is the moving of money earned from a foreign country to a domestic account.
Can I transfer money from NRE to the NRO account?
Yes, it is possible to move money from an NRE account to an NRO account. However, you should check with your tax consultant prior to moving funds because interest increases tax fees in an NRE account.
Steps on How to transfer money from NRE to NRO account
Moving money from an NRE to an NRO account is relatively easy, particularly if the bank has invested heavily in internet banking services. You can talk to the bank where you hold your NRE account to determine the easiest way to move the funds.
Below are the typical steps to follow when transferring funds from NRE to an NRO account:
- Visit your bank’s website
- Login using your user ID and password
- Click on the Funds Transfer icon on the dashboard
- Click on the transfer option
- Follow the instructions to transfer the funds
The best way to send money from Canada to India is to move money from your NRE to an NRO account. Alternatively, you can use sites like Western Union to transfer money from Canada to India.