The transfer of funds/income by NRI (Non-Resident Indian) or PIO (Person of Indian Origin) from the balances held in their Non Resident (Ordinary) Rupee account (NRO a/c) to his/her Non Resident External account (NRE a/c) or overseas bank account is termed as Repatriation.

1.  Sources of Assets/Funds held in India by NRIs or PIOs:

a.    Assets/ Funds held when they migrated from India; or

b.    Inheritance of Assets/ Funds; or

c.    Overseas remittances made from abroad to India and held in the form of assets/investments; or

d.    Income earned on such Assets/Funds held in India.

NRI/PIO can repatriate the above source of asset/funds from India, as explained in ensuing paragraphs.

2.  What and how much NRIs/PIOs are permitted to repatriate from India?

Note 1: Investment/assets purchased by NRI with the condition of non-repatriability:

Any NRI who has purchased/invested as NRI in shares and securities, with a condition that it is not repatriable, then sale proceeds of such investment may not be allowed by certain Banks.

The above sale proceeds were earlier considered by the Bank as repatriable under USD One Million Scheme. In our recent experience, certain Banks have placed restriction on repatriation of such securities. Hence, it is important to approach the Bank and seek professional assistance before proceeding ahead with the repatriation process.

Note 2: As per Foreign Exchange Management Act, 1999 (FEMA), NRIs are not allowed to purchase agricultural land/farm house/plantation property in India. However, NRIs are allowed to continue to hold agricultural land, farm house etc. in certain circumstances eg. if acquired by way of inheritance or acquired when Resident, subject to applicable FEMA provisions. If the acquisition of any property is through illegal means or ways which are prohibited under any law, repatriation of such property may also not be permissible. Hence, it is important to check if the property held by NRI is in accordance with the law.

3.  Documentary Evidence:

The remitter of funds is required to submit following documents to AD Bank for remittance of funds to NRE a/c or Overseas bank account:

i.    Form 15CA:

Undertaking given by the remitter. The form is uploaded online on the Income-tax e-filing website from the remitter’s portal and the said form is required to be e-verified by the remitter.

ii.    Form 15CB:

It is a certificate issued by a Chartered Accountant (CA). A CA verifies that due taxes have been paid on the amount eligible and intended to be repatriated and certifies the same in Form 15CB. Form 15CB is uploaded by the CA on his Income-tax e-filing portal and the same is digitally by the CA.

                  iii.   Form A2 and Outward Remittance Form in case of transfer of funds from NRO a/c to overseas  bank account

         iv.  FEMA Declaration and Transfer Request in case of transfer of funds from NRO a/c to NRE a/c 

         v.  Any other documents required by AD Bank  

4.  Repatriation beyond above limits - Special approval from RBI:

One may have to apply to RBI for special permission to repatriate above USD 1 million. RBI may grant permission for genuine reasons where hardship is caused eg. medical purpose, education etc.

5.  General Points:

i.    Every repatriation is subject to payment of applicable taxes in India.

ii.    Remittances from NRO a/c to NRE a/c or overseas bank account can only be done through a single AD Bank in a particular Financial Year.

iii.     Balances held in the NRO a/c should arise from his/her legitimate dues receivable in India. Accordingly, borrowed funds or receipt of funds from any other NRO account (unless legitimate income) cannot be repatriated.

iv.     If yearly limit of USD One Million is not utilized, then the same cannot be utilized in subsequent years.

v.    There is no limit on the number of repatriation. However, total remittance should be within the limit of USD One Million during a particular Financial Year.

vi.      RBI has instructed that gifts received from resident close relatives is permitted to be credited to NRO a/c of the NRI up to USD 250,000 only and thus in our opinion, repatriation of such receipt by NRI is indirectly limited up to this amount.

vii.   Balance held in NRE a/c is freely repatriable without any limit.

                                                                                                                                                                                                               Updated 04/2024