If you are a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO), you can open, hold and maintain (without permission from the Reserve Bank of India) following types of accounts with an authorised dealer in India i.e. a bank authorised to deal in foreign exchange:

a) Non-Resident (Ordinary) Rupee Account – NRO Account

b) Non-Resident (External) Rupee Account – NRE Account

c) Foreign Currency Non Resident (Bank) Account – FCNR (B) Account

Tabular Analysis of Repatriability of Balance held in NRO A/c. to NRE A/c. or for remittance abroad 

Repatriability –

Principal i.e. Balance in NRO Account (other than Interest received on NRO Account)

Not repatriable (except as per following list which can be repatriable)

1. Current income like rent, dividend, pension etc. and

2. Remittances indicated under “Repatriation of NRO Funds”) i.e. Authorised Dealers can allow remittance/s upto USD 1 million (per financial year) of,

(2.1) Balances in NRO accounts

Where the remittance is to be made from the balances held in the NRO account, the Authorised Dealer should obtain an undertaking from the account holder stating that “the said remittance is sought to be made out of the remitter’s balances held in the account arising from his/ her legitimate  receivables in India and not by borrowing from any other person or a transfer from any other NRO account and if such is found to be the case, the account holder will render himself/ herself liable for penal action under FEMA”

(2.2) Sale proceeds of assets

‘Remittance of assets’ means remittance outside India of funds representing a deposit with a bank or a firm or a company of:

1. provident fund balance

2. superannuation benefits

3. amount of claim or maturity proceeds of Insurance policy

4. sale proceeds of

a) shares,

b) securities,

c) immovable property or

d) any other asset held in India

In the case of repatriation of sale proceeds of immovable property by NRIs/PIOs, ADs can allow repatriation thereof even if the immovable property was held by the NRIs/PIOs for less than 10 years provided the cumulative period of holding of the immovable property in India and retention of the sale proceeds of the property in the NRO Account is not less than 10 years

Repatriability – Interest of NRO Account Freely repatriable
Rupee Loans in India against Security of the funds held in the account to :

a) Account holder b) Third Party

Foreign currency loans outside India against security of the funds held in the account to :

a) Account holder b) Third Party

Permissible Credits to NRO A/c. a) Inward remittances from outside India,

b) legitimate dues in India and

c) transfers from other NRO accounts

d) Rupee gift/ loan made by a resident to a NRI/ PIO relative within the limits prescribed under the Liberalised Remittance Scheme may be credited to the latter’s NRO account.

Permissible Debits to NRO A/c. The account can be debited for the purpose of

a) Local payments,

b) Transfers to other NRO accounts or

c) Remittance of current income abroad.

Apart from these, balances in the NRO account cannot be repatriated abroad 


a) by NRIs and PIOs up to USD 1 million, subject to conditions specified in Foreign Exchange Management (Remittance of Assets) Regulations, 2016.

b) Funds can be transferred to NRE account within this USD 1 Million facility.

Documents required for Transfer/Remittance 1. Undertaking/Declarations required under FEMA law (get format from your bank)

2  Certificate from Chartered Accountant in India

Taxation of Incomes of Non Residents Indians (NRIs) Refer following Article published by me on Taxguru.in


 Please refer all the relevant section, rules, notifications and amendments as applicable. The Author is not responsible for any losses incurred. Content is merely for sharing knowledge & Educational Purpose only. Author can be reached at [email protected] for any queries, issues & recommendations.

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  1. Navin says:

    I hold Term Deposits in India under NRO Account with scheduled Bank in India
    These money is from sale of my Home in India. The property was sold in year 2005.
    Please let me know how shall I proceed ?
    DO I need legal assistance ? or Is this do it self?
    I would appreciate your response.


    1. CA Sagar Gambhir says:

      Respected sir;

      Kindly contact with concerned bank branch about all the formalities regarding Fund Remittances. You can complete all the formalities by yourself, except Form 15CA & Form 15CB need to be obtained from Chartered Accountant

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March 2021