NRI Repatriation Guide: Send Money Abroad from India Legally

NRI Repatriation is an integral part of the financial management and planning for NRIs. In simple terms, repatriation refers to transferring funds from an Indian bank account to a bank account in a foreign country. NRI repatriation specifically refers to the transfer of funds from your NRI account in India to your bank account in your country of residence.

If you are an NRI living abroad for work, business, or education, this blog is all you need. As an NRI, while living abroad, you need to maintain NRI bank accounts in India for managing fund transfers from India to abroad. This whole process refers to the repatriation of funds, and this blog guide will break down every aspect related to it.

What is NRI Repatriation?

NRI repatriation refers to the transfer of funds from India to a foreign country where the individual resides. Now, to repatriate money from India, you need to maintain two types of bank accounts as an NRI. These bank accounts are NRO, which is a Non-Resident Ordinary account, and the NRE, which is a Non-Resident External bank account. However, you can also have an FCNR (Foreign Currency Non-resident) bank account.

Type of Repatriable NRI Accounts

As aforementioned, as an NRI, you need to have at least two types of NRI accounts to repatriate funds from India to your country of residence. Here's a closer look at what each account means and how it operates:

NRO Account

An NRO account is a non-resident ordinary account specifically for NRIs who earn income in India through dividends, rental income, pension, or other sources. The repatriation of funds from an NRO account must be done by the regulations set by the RBI, which permits an NRI to repatriate up to USD 1 million in a financial year, after paying all applicable taxes.

It is essential to keep in mind that interest earned on the NRO account is taxable in India; therefore, NRIs must consider all tax implications, settle the tax, and then repatriate the funds.

NRE Account

An NRE account is a non-resident external account that NRIs use to deposit their foreign income in India. Unlike an NRO account, NRIs can easily repatriate the funds from an NRE account, including both he interest earned on it and the principal amount, without any tax implications.

FCNR Account

An FCNR account is a foreign currency non-resident account. This type of bank account allows NRIs to keep their earnings or savings in a foreign currency. This account safeguards your savings against exchange rate risks as your deposits are in currencies such as USD, EUR, etc. Like an NRE account, you can fully repatriate the funds, both the principal amount and taxes, from this account without facing any tax implications or set limits.

What Income Can NRIs Repatriate?

As an NRI, you can repatriate the income earned through the following means:

• Sale proceeds from immovable property (e.g., residential/commercial property) — limited to two properties, through NRO account, up to USD 1 million per financial year

• Sale of movable assets, such as shares, mutual funds, or bonds, repatriable if purchased with foreign funds (NRE/FCNR)

• Rental income from property in India — repatriable after TDS/capital gains tax

• Inherited funds or assets — repatriable through NRO account with proper documentation (will/succession certificate)

• Interest or dividend income from investments — repatriable depending on source (NRE/FCNR: fully; NRO: taxed and then repatriated)

• Maturity proceeds of deposits in NRE, FCNR, or eligible government securities — fully repatriable

• Capital gains from investments made with foreign funds (e.g., equity via NRE) — repatriable post-tax

Documents Checklist for Repatriation

As part of regulations set by FEMA and RBI, NRIs must be prepared with certain documents required for the repatriation of funds to ensure a seamless process.

NRO Account Repatriation Requirements

• Copy of your passport and valid visa/residence permit

• Copy of your PAN card

• NRO bank account statement

• Form 15CA: Self-declaration form submitted online via the income tax portal

• Form 15CB: Issued by a Chartered Accountant confirming tax compliance

• Tax paid proof (TDS certificates, challans, or ITR if applicable)

• Supporting documents for the source of funds, such as:

  • Sale deed (for property sale)

  • Rent agreement (for rental income)

  • Will or succession certificate (for inheritance)

• Request letter or Application for Remittance Abroad (ARA) form submitted to the bank

NRE and FCNR Account Repatriation Requirements

• Copy of your passport (showing identity and NRI status)

• NRE/FCNR account bank statement

• Declaration confirming that funds are from a foreign remittance and comply with FEMA

• Remittance request letter or form provided by the bank

• Some banks may request a PAN card for internal compliance, though it is not mandatory by law

🔹 Note: Form 15CA/CB is generally not required for repatriation from NRE/FCNR accounts unless requested by your bank.

Repatriation Limits For NRIs Different Accounts 

NRIs can choose to repatriate funds from any NRI account they want; however, each account is subject to specific rules and limitations.

Limit from NRE Account

Limit from NRO Account

You can repatriate funds from the NRO account only after all the due taxes have been paid on the income. The limit is USD 1 million per financial year on revenue from the sale of any immovable or movable asset in India. Income from rent, dividends, pensions, or the sale of property/assets in India will be taxed first, and then they will be eligible to repatriate. Supporting documents, such as Form 15CA/CB and proof of tax payment, are required.

Limit from FCNR Account

You have the complete liberty to transfer money from your FCNR account, as it has no repatriation limits, because the deposits made under this account are in a foreign currency.

FEMA Guidelines for Repatriation of Funds

FEMA refers to the Foreign Exchange Management Act, which is India's modern law regulating the foreign exchange market. NRIs must be aware of the FEMA regulations before repatriation from India.

• You must pay all applicable Indian taxes (e.g., income tax, Capital Gains Tax, TDS) on the funds before repatriation, especially for funds from the NRO account.
• You can collectively repatriate the current income (such as rent, dividends, interest, and pension) at any time of the year or in the following years, subject to an annual limit of USD 1 million.
• You can repatriate funds from an NRE (Non-Resident External) account without any tax limitations. However, such income may still be taxable in your country of residence.
• Funds repatriated from the NRO account must be legitimately earned and not borrowed.
• You can only repatriate the sale proceeds of two residential properties.

Best Repatriable Investment Options for NRIs

Nowadays, NRIs seek investment options in India that can be easily repatriated. Here is a list of such investment options:

1. Equity Investment: NRIs can invest in Indian stock markets through a designated NRI trading and demat account (formerly under the PIS). Investments made from NRE or FCNR accounts are fully repatriable, whereas those from NRO accounts are either non-repatriable or subject to specific limits.
2. Mutual Funds: Various mutual funds cater to the needs of an NRI. However, now there are NRI-specific mutual funds, which are "NRI mutual Funds", offering full repatriation of the invested amount and the gains made. Such funds invest in various asset classes, including debt, equities, or a combination of both.
3. Government Securities: Indian government treasury bills and bonds are another great investment option for non-resident Indians (NRIs). The investments made here offer great returns with low to no risk, allowing NRIs to easily repatriate the full principal amount, as well as the interest earned upon maturity.
4. Real Estate: Excluding the farmhouses, plantations, and agricultural land, a non-resident Indian can invest in both residential and commercial property in India. However, you cannot repatriate the entire property; however, the rental income earned from such properties can be easily repatriated after the applicable taxes are paid. Apart from this, the sale proceeds are also repatriated after the taxes are duly settled.

Other options to explore include public sector undertaking bonds, the national pension system, and bonds or units issued by infrastructure debt funds.

Savetaxs, Your Trusted Partner in the Repatriation of Funds

Repatriation of funds is subject to tax implications, rules, and regulations set by the RBI and the Foreign Exchange Management Act (FEMA), making the entire process complex and overwhelming. One needs to have a solid understanding of Indian taxation laws and FEMA compliances to ensure that no penalties are incurred during the process and that all activities occur within regulatory compliance.

For a seamless process, an NRI can hire a tax expert who can provide end-to-end assistance, from repatriation of funds to ensuring every step is done in compliance with taxation laws and FEMA regulations. This is when Savetaxs comes to rescue the NRI. We are a team of expert Chartered Accountants (CA) with over 30 years of experience in NRI taxation and repatriation of funds abroad.

We can assist you through every step of repatriation, including filing Form 15CA and 15CB, providing remittance support, offering expert guidance, and more. With more than a decade of experience, our experts ensure that everything is done exactly as stated by FEMA rules and RBI (Reserve Bank of India) regulations, so that nothing goes otherwise and the funds are repatriated securely and efficiently.