As a Non-Resident Indian (NRI), managing your Indian income effectively becomes much easier with a Non-Resident Ordinary (NRO) account. This rupee-denominated account allows NRIs to deposit earnings generated within India, such as rent from property, dividends, interest on investments, or pensions.
While NRO accounts provide a convenient way to manage your Indian finances, repatriating funds back to your overseas account involves specific regulations and limitations. Read on to learn what factors, guidelines, and processes you, as an NRI, must consider when transferring your funds from an NRO account.
Limits and regulations for fund transfers from an NRO account
There are two main categories of funds you can transfer from your NRO savings account:
- Current income: This includes income, such as rent, interest, pensions, interest, and dividends. You can freely repatriate any amount of current income from your NRO account.
- Capital income: This refers to income arising from the sale of assets in India, such as property or investments. The Reserve Bank of India (RBI) imposes a repatriation limit of USD 1 million per financial year (April-March) on funds from non-current income sources.
Documents needed
To transfer funds abroad from your NRO account, there are certain documents you need to submit. Typically, these are the documents you may require:
- Application for outward remittance from the NRO account
- Copy of Permanent Account Number (PAN)
- Form 60 (if you don’t have PAN)
- Copy of passport
- Form A2, in compliance with the bank\'s requirements and the guidelines set by RBI
- Form 15CB (a Chartered Accountant certificate)
- Form 15CA (a declaration by NRI/PIO to the Income Tax Department)
- Evidence of the source of funds
In addition to the documents listed above, additional documents may be required depending on the bank’s discretion, such as specific bank declarations.
The importance of the right NRO savings account for smooth fund transfers.
Open an NRO account with a bank that offers the right features and services to simplify your finances and facilitate smooth fund transfers. You can opt for an IndusInd Bank NRO Savings Account, which you can open instantly from anywhere. No bank visits, no lengthy paperwork, or hassles. Simply apply online and become eligible to enjoy comprehensive NRI services and perks like:
Free chequebook | Complimentary payable-at-par chequebook that you can use across India. |
Competitive rates | Earn attractive interest on your hard-earned money. |
Digital banking | Access premium digital banking services, including net banking, mobile banking, and a video branch. |
Joint account facility | Can be opened jointly with another NRI/PIO or a resident Indian on a former or survivor basis. |
Apply for an NRO Savings Account today and get started with IndusInd Bank!
NRO account fund transfers | The process
- Initiate the transfer online via internet banking or mobile banking app. You can also visit the branch if needed.
- Provide the NRO account details and required documents.
- The bank will verify the documents and ensure that the annual repatriation limit is not breached.
- After your repatriation request is approved, the funds will be converted from INR to the desired foreign currency and transferred to your overseas account.
Key takeaways
Gaining a thorough understanding of the processes involved in NRO account fund transfers is crucial for effective financial management. To facilitate smooth and lawful international transfers, it is essential to familiarize yourself with the relevant regulations, necessary documentation, repatriation restrictions, and tax implications.
By grasping these aspects, you can ensure that your fund transfers are not only quick and efficient but also fully compliant with legal standards.