NRO to NRE transfer: can you move money from NRO to NRE account and how?
RBI allows NRIs to transfer funds from their NRO account to their NRE account — subject to the USD 1 million per financial year repatriation cap. The transfer is treated as a repatriation from NRO. Tax on NRO income must have been paid before transfer (the bank requires Form 15CA and Form 15CB signed by a CA). The purpose of the transfer is to convert India-source income (which was taxed at NRO level) into freely repatriable NRE funds (which are exempt from India tax). Once in NRE, the funds are repatriable abroad without further India tax.
NRO → NRE transfer allowed within USD 1 million/year cap; needs Form 15CA/15CB (CA-signed)
Yes, NRIs can transfer NRO funds to NRE — this is a permitted repatriation under FEMA. The transfer is capped at USD 1 million per financial year (same cap as all NRO repatriations). You need: (1) Form 15CA (self-declaration online on the Income Tax portal) and (2) Form 15CB (signed by a Chartered Accountant certifying that India taxes have been paid on the NRO amount). Submit these to your bank, which then effects the transfer. The transferred amount moves from NRO to NRE and becomes freely repatriable abroad.
Key points
- NRO → NRE: permitted within USD 1 million/year — The RBI FEMA limit for all NRO repatriations (including NRO-to-NRE transfers) is USD 1 million per financial year.
- Form 15CA and 15CB required — The bank requires Form 15CA (online self-declaration) and Form 15CB (CA certificate of tax compliance) before processing the NRO-to-NRE transfer.
- Once in NRE: freely repatriable abroad — Funds transferred from NRO to NRE are effectively converted into repatriable overseas funds — the NRE account allows free remittance abroad with no further tax.
Step-by-step: NRO to NRE transfer process
Step 1: Ensure India tax on the NRO funds is paid or TDS has been deducted. Obtain Form 26AS confirming TDS and any advance tax payments.
Step 2: Engage a Chartered Accountant. The CA will review the NRO income, verify tax compliance, and issue Form 15CB certifying that applicable taxes have been paid.
Step 3: Log in to the Income Tax portal and file Form 15CA (Part C, which refers to Form 15CB). Note the acknowledgement number.
Step 4: Submit Form 15CA and Form 15CB to your bank's NRI department along with a written request for NRO-to-NRE fund transfer.
Step 5: The bank processes the transfer, usually within 5–10 working days after document verification.
Step 6: Funds appear in NRE account. They can now be used for investment in NRE FDs, sent abroad, or withdrawn in foreign currency.
Common reasons NRIs do NRO-to-NRE transfers
Property sale proceeds: sale proceeds go to NRO after LTCG tax. Transfer to NRE makes them freely repatriable.
NRO FD maturity: if the FD was funded from India income, it is in NRO. Transfer to NRE for future flexibility.
Rental income accumulated: rent from India property goes to NRO. After tax, transfer surplus to NRE for easier repatriation.
Inherited funds: inherited money in NRO from a resident parent's estate can be transferred to NRE after tax compliance.
Frequently asked questions
Is there a minimum or maximum single transfer amount?
No minimum per transaction — but all NRO repatriations (including NRO-to-NRE) are aggregated against the USD 1 million annual cap. Maximum per transaction is whatever the bank's SWIFT transfer limit allows, within the annual cap.
Can I do multiple NRO-to-NRE transfers in a year?
Yes — you can do multiple transfers as long as the aggregate does not exceed USD 1 million in the financial year. Each transfer requires Form 15CA and Form 15CB.
Does the NRO-to-NRE transfer attract any tax?
The transfer itself is not a taxable event. The tax obligation was on the income when it was earned (TDS on NRO interest, advance tax on rental income, etc.). The transfer simply moves post-tax funds. Form 15CB certifies this tax compliance.