NRI Banking: What to know before you transfer money from your NRO account out of India
NRE account can be smoothly transferred to an account outside India, the process for NRO accounts is more nuanced, involving specific rules and compliance measures for transfers.
Here are some key points to note:
Source of Funds and Limits
The maximum amount that can be transferred from an NRO account outside of India depends in large part on the source of funding.
Up to $1 million may be remitted by an NRI each fiscal year from the balances kept in their NRO account. This cap applies to money that comes from sources other than current income. The amount of current income that can be sent overseas from an NRO account is unlimited.
There are no restrictions on the amount of current income that NRIs can repatriate from their NRO account, including rent, dividends, pensions, interest, and so forth. Nevertheless, the amount of assets (other than current revenue) that can be remitted is limited to $1 million per fiscal year.
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The Foreign Exchange Management Act of 2000 does not define «current income» (FEMA). On the other hand, income in the form of rent, pension, salary, dividend, interest income, and so forth is included, per RBI circulars. The earnings from the sale of real estate or mutual funds in India are an example of remittance of assets (not included in current income).
An NRI or PIO may repatriate or remit up to $1 million in balances from an NRO account in accordance with FEMA regulations each fiscal year. The cap applies to the total amount of non-current revenue remittances made during the fiscal year. There is no cap on how much current income an NRI or PIO can send via an NRO account.
Documents Needed
To initiate a
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