NRE, NRO, FCNR(B) and RFC accounts, deposits, and money moving in and out of India.
A salary earned in Abu Dhabi, rent received in Bengaluru, a deposit maturing in Chennai, a transfer to a child studying in Toronto: each moves through a particular account, and each account carries its own rules.
For an NRI, the type of account affects more than where money is kept. It affects what can be credited, what can be sent back abroad and how the interest is taxed in India.
NRE, NRO, FCNR(B) and RFC accounts each follow their own rules. Those rules depend on your residence under FEMA, which usually changes when you leave India and changes again when you return. What your bank asks for, what FEMA permits and how income tax applies are three separate questions, and the answer to one does not settle the others.
An NRE account shows why. In India, the interest is exempt only while you are a person resident outside India under FEMA (or are permitted by the RBI to maintain the account); your residential status under the Income-tax Act does not decide it. The country you live in may tax it too.
Where to begin
- NRE and NRO accounts compared
- What can be credited to an NRE account
- What can be credited to an NRO account
- Sending money abroad from NRE and NRO accounts
- Repatriating money from an NRO account
- FCNR(B) or NRE fixed deposit
- Converting a resident account when you leave India
Where another country is involved, its tax, legal and reporting position should be reviewed by an appropriately qualified professional in that country.
All guides in this section
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What Documents Do NRIs Need to Repatriate Property Sale Proceeds, Rent or Investment Income?
An NRO bank statement shows the money you hold. Repatriation requires evidence of what the money represents, how it was acquired and which FEMA and tax requirements apply.
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How can NRIs remit inherited bank balances abroad?
An inherited bank balance does not automatically become remittable money. Here is how an NRI should distinguish bank settlement, succession entitlement, RBI permission and Indian tax requirements.
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Can NRIs Hold Joint Bank Accounts with Resident Family Members in India?
Joint bank accounts between NRIs and resident Indians are permitted in specified arrangements. The account type, first holder, funding source and operating mandate determine what each holder may do.
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Who Can Open an RFC Account in India, and How Is It Different from FCNR(B)?
Returning to India with foreign-currency savings? RFC eligibility, FCNR(B) continuation and interest taxation follow different rules. Understand what changes and which records matter.
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When can an FCNR(B) deposit continue after returning to India?
An existing FCNR(B) deposit may continue after returning to India. The contracted rate, FEMA classification, interest-tax exemption and maturity treatment must be examined separately.
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What Can Be Credited to an NRO Account, and What Documents Are Required?
An NRO credit is not automatically proof of FEMA compliance, taxable income or repatriation eligibility. The underlying transaction and evidence determine the answer.
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What Money Can Be Credited to an NRE Account Under RBI Rules?
An NRE account can receive more than overseas remittances, but Indian income, investment proceeds, refunds, gifts and NRO transfers follow different RBI conditions.
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Can an NRI Transfer Money from NRO to NRE, or NRE to NRO?
Both NRE-to-NRO and NRO-to-NRE transfers can be permitted. The source of funds, RBI conditions, documentary evidence and subsequent repatriation consequences differ.
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How to Transfer Money from Abroad to an NRE or NRO Account in India?
Sending money to India involves more than a bank transfer. Understand the correct NRE/NRO account, permitted remittance route, documents, conversion, tax treatment and future repatriation conditions.
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How Can an NRI Repatriate Money from an NRO Account?
Repatriating an NRO balance depends on what the money represents. Understand the FEMA permissions, annual limits, tax reporting and bank evidence required.
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Returning to India: Which Bank KYC, Account Mandates and Records Must You Update?
Your bank address, account classification, tax-residence declaration and operating mandates may require separate attention after returning to India. Here is how those obligations differ.
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When Must You Convert Your Resident Savings Account to an NRO Account After Leaving India?
Your Indian savings account may continue functioning after you move abroad, even when its regulatory classification needs to change. Here is when NRO redesignation applies.
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NRI Fixed Deposits: How Do NRE, NRO and FCNR(B) Differ in Tax and Repatriation?
NRE, NRO and FCNR(B) fixed deposits follow different rules for funding, Indian interest taxation and repatriation. Here is what NRIs and returning Indians need to understand.
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FCNR(B) vs NRE Fixed Deposit: What Is the Difference and Which Should You Consider?
FCNR(B) deposits hold eligible foreign currencies. NRE fixed deposits hold rupees. Understand the differences in currency exposure, Indian tax and return-to-India treatment.
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NRE vs NRO Accounts: Who Can Open Them, What Can Be Credited, and How Are They Taxed?
An NRE or NRO account does more than hold money in India. Its FEMA eligibility, permissible credits, interest treatment and repatriation conditions must be understood separately from the underlying income.