Since the significant announcement by the Reserve Bank of India on May 7, 2012 many NRIs have expressed interest in transferring funds from the Non-Resident Ordinary Account (NRO) to Non-Resident External Account (NRE). The Reserve Bank of India (RBI) permitted NRO to NRE fund transfer subject to payment of applicable taxes within the overall ceiling of $ 1 million in a financial year. Transfer of Funds from NRO to NRE: Before 2012... Prior to 2012, the transfer of funds from NRO to NRE account was not permitted by RBI. The only way to transfer the amount into NRE accounts was through release from abroad or another NRE account. Transfer of Funds from NRO to NRE: After 2012… The proclamation by the Reserve Bank of India is plainly good news for NRIs looking forward to transfer their money to NRE accounts, which are repatriable in foreign currencies. This change has helped NRIs to save transaction cost. However, there are certain conditions that have to be met before transferr...
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