How to Transfer Money from NRO to NRE Account

How to Transfer Money from NRO to NRE Account

Transferring money from an NRO (Non-Resident Ordinary) account to an NRE (Non-Resident External) account can be a little tricky for those who are not familiar with the process. In this article, we will guide you through the steps involved in transferring money from an NRO account to an NRE account.

Understanding the difference between NRO and NRE account

Before we dive into the process of transferring money, it is important to understand the difference between an NRO and an NRE account. An NRO account is meant for non-resident Indians to manage their income earned in India, such as rent, dividends, and interest. On the other hand, an NRE account is meant for non-resident Indians to park their foreign income, such as income earned abroad or remittances received from overseas.

Documents required for transferring money from NRO to NRE account

To transfer money from an NRO account to an NRE account, you will need to submit the following documents:

1. A copy of your passport

2. A copy of your visa

3. A copy of your PAN card

4. A copy of your NRO account statement

5. A declaration stating that the funds being transferred are from alegitimate source

6. A form called RBI Form 15CA and 15CB (only required if the amount being transferred is greater than INR 5 lakhs)

Process of transferring money from NRO to NRE account

Once you have all the necessary documents, you can follow these steps to transfer money from your NRO account to your NRE account:

1. Visit your bank and fill out a form called the NRO to NRE transfer request form.

2. Attach the required documents mentioned above along with the form.

3. Submit the form and documents to the bank.

4. The bank will verify the documents and process the request.

5. Once the transfer is complete, you will receive a confirmation from the bank.

Things to keep in mind while transferring money from NRO to NRE account

Here are a few things to keep in mind while transferring money from your NRO account to your NRE account:

1. The amount being transferred should be from a legitimate source. Any illegal or unaccounted for money cannot be transferred.

2. The transfer can only be done for the purpose ofrepatriation of funds. Any other purpose is not allowed.

3. The transfer can only be done in the same currency as the NRO account. If you want to convert the currency, you will need to do it separately.

4. If the amount being transferred is greater than INR 5 lakhs, you will need to obtain an RBI Form 15CA and 15CB, which certify that the tax has been paid on the amount being transferred.

In conclusion, transferring money from an NRO account to an NRE account can be a little complicated, but if you follow the steps mentioned above and provide the necessary documents, it can be done smoothly. It is important to ensure that the funds being transferred are from a legitimate source and that the purpose of the transfer is for repatriation of funds.