NRE Accounts: Transfer And Remittance Options Explained
September 18, 2026
As a Non-Resident Indian (NRI), managing your financial commitments in India can be challenging. To make it easier, you can open an NRE (Non-Resident External) account, which allows you to conveniently deposit your foreign earnings in India and withdraw them in Indian rupees. One of the main advantages of an NRE account is that you can repatriate eligible funds outside India, subject to applicable banking and regulatory requirements.
In this article, we will explore the benefits of an NRE account and provide valuable insights on how to transfer money to and from these accounts, as well as various NRE account remittance options.
Benefits of an NRE Account
1. Exempt from Taxes
The interest earned on the principal amount in an NRE savings account is tax-free. This means that you can grow your savings without worrying about taxes eating into your returns.
2. Easy Transfers
With an NRE account, you can transfer both the principal amount and the interest earned to another foreign bank account without any restrictions. Additionally, you can transfer funds quickly from one NRE account to another or even to an NRO (Non-Resident Ordinary) account under certain terms and conditions.
3. Simplify Investments
You can utilise funds from your NRE account to make investments in India, whether it's in equity or debt mutual funds. This flexibility allows you to grow your wealth while taking advantage of investment opportunities in the country.
4. Joint Account Holding
If both account holders are NRIs, you can opt for joint account holding in an NRE account. You can also authorise a resident family member to operate the account on your behalf. However, it's important to note that joint resident Indian account holders can be added on a 'former' or 'survivor' basis, and they must be related, such as a parent.
5. Easy Withdrawal
NRE accounts offer convenient withdrawal options. With an international debit card, you can access your funds 24/7 from anywhere in the world. Additionally, internet and mobile banking services enable you to manage your money online, making transactions hassle-free.
6. Excellent Interest Rates
NRE accounts provide attractive interest rates. For example, Ujjivan SFB offers high-interest NRE Savings Account that comes with multiple benefits. This helps you make the most of your foreign earnings.
What are the Various NRE Account Remittance Options
Transfer and remittance rules depend on the account type you hold. Review how an NRE savings account works with your bank and the account type. For transfer of funds from Ujjivan SFBs NRE Account or rather NRI Account, please contact Ujjivan Small Finance Bank at 1800 208 2121 or write to us at customercare@ujjivan.bank.in.
1. Transfer Money from One NRE Account to Another
NRE to NRE transfer is a straightforward process that requires a few simple steps:
Gather the necessary details of the recipient's NRE account, including their bank name, branch address, account number, and Indian Financial System Code (IFSC).
Decide how you want to transfer the funds between the NRE accounts. You can choose between online banking, visiting a bank branch in person, or using a trusted money transfer app.
Decide on the amount you wish to transfer from your NRE account to another NRE account. Ensure that you have sufficient funds available in your account.
Double-check the recipient's bank details and the transfer amount to avoid any errors or delays. Ensure that all information is accurate before proceeding with the transaction.
Make the payment for the transfer using your preferred method, such as through net banking or by providing cash at the bank branch. Follow the instructions provided by your chosen transfer method. Submit all the necessary information and initiate the transfer according to the instructions provided by your bank or money transfer provider. Keep a record of the transaction for future reference.
2. Transfer Money from NRE to NRO Account
You can transfer funds from your NRE account to an NRO account when you want to manage eligible income, expenses or other rupee-denominated transactions in India. Once transferred, the funds will be subject to the tax and repatriation rules applicable to an NRO account. Here's how you can do it:
Choose the most convenient way to transfer money from your NRE account to an NRO account. Options include online banking, in-person transactions at a bank branch, or using a reliable money transfer app.
Provide the necessary details of your NRO account, including the bank branch's IFSC code, which ensures smooth and accurate processing of the transaction.
Decide on the amount you want to transfer from your NRE account to the NRO account. Consider any specific financial requirements or obligations that necessitate this transfer.
In some cases, you may be required to provide additional supporting documents for the transfer. This could include proof of income, tax-related documents, or other relevant paperwork. Ensure that you have these documents ready if needed.
Double-check all transaction details before proceeding with the transfer. Make sure that you have entered accurate information and that all amounts and recipient details are correct. Accept any terms and conditions associated with the transaction and enter any One-Time Password (OTP) required for verification purposes. Once you have completed these steps, your payment request will be processed.
3. Transferring Money from NRO to NRE Account
Earlier, transfers from NRO accounts to NRE accounts were not permitted. You can now transfer eligible funds from your NRO account to your NRE account within the overall limit of USD 1 million per financial year, subject to applicable taxes, supporting documents and bank verification.
Rule 1: You can transfer only up to USD 1 million in a financial year (April-March).
Rule 2: : NRO accounts attract tax. So, it's necessary to pay your taxes before transferring the amount.
Rule 3: You need to submit a signed cheque/ letter for funds transfer. Additionally, you need to provide a FEMA declaration which states that you're eligible to transfer funds from NRO to NRE account as per the FEMA regulations. Also, you will have to submit form Form 145 and Form 146 (earlier 15CA and 15CB).
What is Form 145? (Earlier Form 15CA)
As per Section 397(3)(d) of the Income-tax Act, 2025, and Rule 220 of the Income-tax Rules, 2026, every person making a payment to Non-Residents (not being a Company), or to a Foreign Company shall deduct TDS if such sum is chargeable to Income Tax and the details are required to be furnished in Form 145. A person responsible for making such remittance (payment) has to submit Form 145 before remitting the payment. Form 145 is the new equivalent of Form 15CA under the Income-tax Act, 2025.
What is Form 146? (Earlier Form 15CB)
Form 146 is a certificate issued by a Chartered Accountant (CA) for certain taxable payments made to a non-resident, not being a company, or to a foreign company. Form 146 is the new equivalent of Form 15CB under the Income-tax Act, 2025.
It is generally required when the payment or aggregate of payments exceeds ₹5 lakh during the tax year and the remittance is taxable in India. The CA examines the remittance and certifies details such as the nature of the payment, its taxability, applicable TDS rate, TDS amount and other relevant tax details.
Final Thoughts
If you do not require immediate access to all your funds, you may also explore NRE and NRO deposits. You can compare them based on the source of your funds, preferred tenure, tax treatment and repatriation requirements.
In conclusion, an NRE account offers numerous benefits for NRIs, allowing you to easily manage your financial commitments in India and making non-resident remittance simple and easy. With tax exemptions, free transferability, and competitive rates, an NRE account provides a secure and convenient way for non-residents to handle their finances.
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