November 2015. I’m in California. My rental income from Chennai keeps piling up in my NRO account.
About Rs 12 lakhs sitting there. Doing nothing.
I call my HDFC relationship manager. “Can I just move this to my NRE account?”
“No sir. Not allowed.”
I thought she was joking. She wasn’t.
Let me explain why this restriction exists. And what you can actually do instead.
The Straight Answer
No. You cannot directly transfer money from your NRO account to your NRE account.
Not a single rupee.
The Reserve Bank of India blocks this explicitly.
Why? Because these accounts serve fundamentally different purposes.
Your NRO account holds Indian sourced income. Rent from your Mumbai flat. Dividends from Indian stocks. Interest from fixed deposits in India.
Your NRE account holds foreign sourced income. Your Dubai salary. Your Singapore consulting fees. Money you earned outside India.
Mixing the two violates FEMA regulations.
The government wants to track where your money comes from. NRO money stays NRO. NRE money stays NRE.
Simple as that.
But Here’s What You CAN Do
You can repatriate money from your NRO account abroad. Then bring it back into your NRE account.
Sounds weird. But it’s legal.
Here’s the catch. You can only repatriate up to USD 1 million per financial year from your NRO account.
After you pay all applicable taxes in India.
How the Repatriation Actually Works
| Step | What Happens | Timeline |
|---|---|---|
| Get a CA certificate (Form 15CA and 15CB) | Your chartered accountant certifies that taxes are paid on the NRO income | 3 to 5 days |
| Apply to your bank for repatriation | Bank processes your request and transfers money abroad | 7 to 10 days |
| Bring money back to NRE | Transfer from foreign account to your NRE account | 1 to 3 days |
Total time? About two to three weeks.
Total cost? CA fees of Rs 2,000 to Rs 5,000 plus bank charges of about 0.25% to 0.5% of the amount.
Is it worth the hassle?
Depends on how much money you have and why you need it in your NRE account.
My Personal Experience With This
I never did the full repatriation loop. Too complicated. Too expensive.
But I knew people who did.
My friend Venkat had Rs 45 lakhs in his NRO account. Years of rental income from two properties in Hyderabad.
He wanted this money in his NRE account. Why? Because he was planning to buy a house in the US. Needed to show funds.
He went through the full process. Got his CA certificate. Applied for repatriation. Sent money to his US bank account. Then transferred it back to his NRE account in India.
Lost about Rs 60,000 in fees and charges. But he needed the money classified as foreign funds for his US mortgage application.
Sometimes the rules force you into expensive workarounds.
What About NRE to NRO Transfer?
This direction is easier. You CAN transfer from NRE to NRO.
Why? Because you’re moving foreign sourced money into an account that accepts any money.
NRO accounts are more flexible. They can hold both Indian income and foreign income.
I did this once. Transferred $5,000 from my NRE to my NRO. Needed to pay property tax and some repair bills in Chennai.
Took one day. No special permissions needed. Just a regular fund transfer through net banking.
But remember. Once foreign money enters your NRO account, it becomes NRO money. You lose the tax benefits. Interest becomes taxable.
Think carefully before doing this.
Check out my guide on managing multiple NRI accounts for more strategies.
Why People Want to Do This
I’ve heard every reason imaginable in our Facebook community.
Some want to consolidate accounts. Easier to manage one account than two.
Some want the tax benefits. NRE interest is tax free. NRO interest gets hammered with 30% TDS.
Some want to repatriate more than the USD 1 million limit. They think moving money to NRE increases their repatriation capacity. It doesn’t work that way.
Some just don’t understand the rules. They think all NRI accounts are the same.
They’re not.
The Tax Angle Nobody Talks About
Here’s what most people miss.
When you repatriate money from NRO, you need to prove all taxes are paid.
Your CA needs to certify this with Form 15CA and 15CB.
If you haven’t been filing returns properly? You’re stuck.
I met someone in Bangalore who had Rs 30 lakhs in his NRO account. Rental income collected over five years.
He never filed ITR as an NRI. Thought he didn’t need to because he wasn’t in India.
Wrong.
When he tried to repatriate, the CA refused to give the certificate. No returns filed meant no proof of tax payment.
He had to file five years of back returns. Pay penalties. Pay interest on late payment.
Ended up paying almost Rs 4 lakhs extra.
All because he didn’t file returns on time.
Learn from his mistake. Read my guide on filing ITR as an NRI before you accumulate too much in your NRO account.
What Banks Will Tell You
Most bank staff don’t understand NRI regulations deeply.
I’ve had relationship managers give me wrong information multiple times.
One ICICI manager told me I could transfer from NRO to NRE if the amount was under Rs 50,000. Completely false.
One Axis Bank person said I needed RBI permission for any movement between accounts. Also wrong.
One SBI manager said the rule changed in 2020 and transfers are now allowed. Nope. Still not allowed.
Don’t rely on bank staff for regulatory guidance. They mean well. But they’re often misinformed.
Get your information from RBI circulars directly. Or ask a qualified CA who specializes in NRI taxation.
Or ask in our community forum where actual NRIs share real experiences.
The Sneaky Workarounds People Try
Some people try to game the system.
They withdraw cash from NRO. Deposit cash into NRE. Think they’re clever.
Don’t do this.
Banks track large cash deposits. They’ll ask for source of funds. You’ll have to explain. Your explanation will reveal the violation.
Your accounts could get frozen. You could face penalties. Not worth it.
Some people ask family members to deposit money into their NRE from the family member’s resident account. Claiming it as a gift.
Also risky.
RBI tracks this. If caught, both accounts could face action.
The gift route works only if it’s genuine. Your parents genuinely gifting you money from their savings. Not you recycling your own NRO money.
When You Return to India
This whole problem disappears when you become a resident again.
Once you’re back in India, you convert both NRO and NRE to regular accounts. Or to RFC accounts if you want to keep some flexibility.
Then you can move money freely between accounts. No restrictions.
This is exactly what I did in 2017 when I moved back.
I had money stuck in my NRO. Money sitting in my NRE. Both converted to resident accounts.
Then I consolidated everything into one primary account. So much simpler.
Read about reconverting accounts after returning for the full process.
Three Column Comparison
| Account Type | Can Receive From NRO? | Can Send To NRO? |
|---|---|---|
| NRE Account | No direct transfer allowed. Only through repatriation route. | Yes. Direct transfer allowed anytime. |
| NRO Account | N/A (same account type) | N/A (same account type) |
| Regular Resident Account | Not applicable unless you’ve returned to India | Not applicable unless you’ve returned to India |
The Practical Solution
Stop trying to move money from NRO to NRE.
Instead, structure your finances properly from the start.
Keep your NRO account for Indian income. Use it to pay Indian expenses. Property tax. Maintenance charges. Family support.
Keep your NRE account for foreign income. Use it for savings. For sending money abroad when needed. For bringing money back to India.
If you need to repatriate NRO funds, do it properly. Get the CA certificate. Follow the process. Accept the fees.
If you don’t need to repatriate, just leave the money in NRO. Invest it in Indian instruments. Fixed deposits. Mutual funds. Stocks.
There’s nothing wrong with having money in your NRO account.
The only time this becomes a problem is when you haven’t been filing returns. Or when you’re trying to dodge taxes.
If everything is clean and properly reported, NRO money is perfectly fine money.
When to Get Professional Help
If you have more than Rs 10 lakhs in your NRO account, talk to a CA who specializes in NRI taxation.
They can help you plan the most tax efficient way to manage this money.
If you’re planning to repatriate, definitely get professional help. The Form 15CA and 15CB process is not DIY friendly.
If you’re returning to India soon, discuss timing with your CA. Sometimes waiting a few months and converting accounts as a resident is simpler than repatriating as an NRI.
Professional fees are worth it. I learned this the expensive way.
My Bottom Line
You cannot transfer from NRO to NRE directly. Period.
The law is clear. The RBI is firm. Banks won’t allow it.
You can repatriate up to USD 1 million per year from NRO abroad. Then bring it back to NRE if you really need to.
But ask yourself why you need to do this. The answer might reveal a simpler solution.
Most people don’t actually need money in NRE. They just think they do.
Figure out what you’re really trying to achieve. Then find the legal path to get there.
Don’t try shortcuts. They cost more in the long run.
Sources and References:
Reserve Bank of India FEMA Regulations on NRI Accounts
RBI Master Direction on Deposits and Accounts
RBI FAQs on Remittances from NRO Accounts
Income Tax Department Form 15CA and 15CB Guidelines
FEMA Notification on Repatriation Limits
All information verified against current regulations as of 2024. Rules can change. Always verify with your bank and CA.