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Capitalizing the 1 Million Dollar Scheme: Transfer of Non-Resident Funds from India to Abroad

In the globalized world of today, the financial mobility of assets across borders is a critical aspect of wealth management for Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Overseas Citizens of India (OCIs), and Foreign Nationals. Recognizing this need, the Reserve Bank of India (RBI) has formulated a pivotal framework under the Foreign Exchange Management Act (FEMA) Regulations—known as the $1 Million Dollar Scheme. This scheme facilitates the repatriation of funds from India to abroad, offering a substantial avenue for managing assets held within Indian territories.

The 1 million US Dollar Scheme, formulated by the Reserve Bank of India (RBI) under the FEMA Regulations, serves as a pivotal avenue for the repatriation of funds exclusively for Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Overseas Citizens of India (OCIs), and Foreign Nationals (referred to as “NRI/POI/OCI/Foreign Nationals”).

This scheme outlines a framework for the seamless transfer of Indian assets amounting to $1 million, approximately 8.3 crores in Indian rupees as of February 2024, within a given financial year. It is important to note that this scheme does not apply to Indian residents, thereby emphasizing its exclusivity to non-residents. Furthermore, any amount exceeding USD 1 million per financial year required prior permission from the RBI for remittance.

Under this scheme, individuals falling under the purview of NRI/POI/OCI/Foreign Nationals are granted the privilege to repatriate various assets of India which are as follows:

  • Proceeds from the sale of securities or immovable properties or
  • Superannuation or PF benefits or
  • Maturity proceeds of insurance policies or
  • Gifts Received from Resident Individuals or
  • Bank Balance savings that you may have, previous income, savings in India or
  • Any other asset held in India in accordance with the provisions of FEMA,1999, or rules/regulations made thereunder.

Capitalizing 1 Million Scheme Transfer of Non-Resident Funds from India to Abroad

Beneficiaries of this scheme must consider the following points:

  • No Tax Collected at Source (TCS) is applicable during the repatriation of funds under this scheme.
  • Borrowed funds are ineligible for repatriation under this scheme.
  • Repatriation of funds is exclusively facilitated through the Non-Resident Ordinary Rupee Account (NRO Account).
  • Taxes on income earned in India must be duly paid before repatriation.
  • Funds must be transferred solely to the individual’s overseas bank account, because third-party transfers are prohibited.

A comprehensive set of documents is required to initiate the repatriation process, including:

1. Documentary proof of the sources of funds and payment of applicable taxes.

2. FEMA Declaration and Transfer Request.

3. Form 15CA – Self-declaration by the remitter of funds (NRI).

4. Form 15CB – Chartered Accountant’s certificate certifying the appropriateness of taxes deducted/paid.

5. Any other documentary proof as requested by the Authorized Dealer (AD) Bank.

By adhering to the guidelines outlined within the 1 million Dollar Scheme, NRI/PIO/OCI/Foreign Nationals can effectively leverage this scheme for the transfer of funds from India to abroad easily. This scheme not only facilitates ease of transfer but also enables the above-mentioned individuals to save the TCS implications on such remittances, ensuring compliance with optimizing the financial prospects.


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  1. Priyanshu Seta says:

    Brilliant ! Your explanation is truly commendable. It provides clear understanding from both the FEMA as well as Income Tax Perspective on this critical matter.

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April 2024