Inward remittance rules for NRIs: is there a limit on money sent to India?
India has no cap on inward foreign currency remittances. NRIs can send any amount to their NRE or NRO account from abroad. Overseas funds can be credited to NRE (tax-free, repatriable). India-source income must go to NRO. Senders may face compliance checks at the sending end — banks and providers check source-of-funds for large transfers.
No cap on inward remittances to India — but sending country may check source of funds
India imposes no limit on inward foreign currency remittances to NRE or NRO accounts. An NRI can send any amount from abroad to their Indian account. The compliance burden is on the sending side — UK, USA, UAE, Singapore, Canada and Australia all require source-of-funds documentation for large transfers. The receiving Indian bank may ask for purpose declaration above certain amounts.
Key points
- No India cap on inward remittances — RBI and FEMA impose no limit on overseas funds remitted into NRE or NRO accounts from abroad.
- Sending country checks source of funds — Providers and banks in the USA, UK, UAE, Canada and Australia require documentation for transfers above their thresholds (typically USD/CAD/AUD 10,000, AED 40,000, GBP no fixed limit).
- Credit NRE for overseas funds, NRO for India income — Overseas-earned funds must go to NRE; India-source income (rent, dividends, matured FDs) must go to NRO — mixing is a FEMA violation.
What FEMA says about inward remittances
Under FEMA, there is no ceiling on inward remittances in foreign currency to an NRE account from overseas. Similarly, NRO accounts can receive any amount of inward remittances.
Purpose codes: Indian banks require a purpose code for inward remittances above ₹5 lakh (a standard banking compliance requirement). Common NRI codes include P0008 (personal remittance), P0009 (family maintenance).
Large amounts: for very large single transfers (above ₹5–10 crore equivalent), the receiving bank may request source-of-funds documentation and a declaration.
Sending side limits (country-by-country)
USA: no formal limit on outward personal remittances, but transfers of $10,000+ trigger FinCEN reporting. Banks and providers conduct source-of-funds checks for large amounts.
UK: no fixed outward remittance limit. Providers conduct source-of-funds checks typically for transfers above £10,000–£25,000.
UAE: no formal cap on personal outward transfers. Providers require documentation for amounts above AED 40,000 or equivalent.
Canada: no formal cap, but FINTRAC requires reporting of large cash transactions and international EFTs above CAD 10,000.
Australia: AUSTRAC requires reporting of international transfers above AUD 10,000.
Singapore: MAS does not cap personal outward remittances. Providers conduct KYC and source-of-funds checks for large amounts.
Frequently asked questions
Can I send ₹1 crore to India as an NRI?
Yes — India has no cap on inward remittances. The equivalent foreign currency amount (e.g. ~USD 120,000) must pass through the remittance provider's compliance checks on the sending side. Provide source-of-funds documentation such as salary slips, sale proceeds documentation or investment records.
Can I credit a large remittance to NRE even if I'm returning to India soon?
Yes, as long as you are still NRI at the time of the remittance. NRE accounts accept overseas remittances while you have NRI status. Once you become resident, the account must be redesignated — but funds credited before return remain.
Does India tax inward remittances?
Inward remittances into NRE accounts are not taxable in India — the overseas earning is exempt from Indian tax for NRIs. Inward remittances into NRO (India-source income) are taxable at applicable rates.