Sometime back, Non-resident Indians, that is, NRI’s could transfer cash from their NRE to their NRO account, but vice versa transfer was not allowed until the year 2012, when the government made such types of cash transactions possible.
A NRE account stands for- Non-resident external account, whereas the full form of a NRO account is Non-resident ordinary account.
While it is quite simple to transfer cash from NRE to NRO account, some norms have to be adhered to while transacting cash vice versa. Currently, only about 1 million dollars can be transferred from a NRO account to a NRE account. The following steps should be kept in mind when transferring cash-
1. A FEMA declaration has to be made
The document essentially declares your eligibility to transfer money from a NRO account to a NRE account. If one does not produce this document the bank can refuse the transfer of the cash.
2. Fill the form 15CA
Filling the form can prove to be a bit tedious, but patience is the key. Log on to the website of the income tax department, using your pan card and login credentials. Read the instructions regarding the form 15CA and fill up accordingly. Once the form is filled submit it and get hold of a print out which you have to present to the bank.
3. Get hold of form 15CB from your chartered accountant
One also needs to submit the form 15CB and can avail the help of a chartered account to do so.
4. Submit all documents to the bank
Once the forms are filled and submitted, ready the various documents that have to be submitted to the bank. Make sure you have a copy of-
• Form 15CA and form 15CB
• Demand draft or a cheque with the amount that needs to be transferred
• Request letter for transfer, or a form depending on the requirements of the bank
• Other documents that the bank has asked for
5. Transfer of amount
Once the bank verifies all the documents that have been submitted, it will proceed with the transfer of money from your NRO account to your NRE account.
When endeavouring to transfer cash from NRO account to a NRE account make sure to find out relevant information from the bank. This is because the steps of transfer and documents required may vary from bank to bank. Also make sure that no mistakes are made while filing both the forms. Any error may prolong the entire process of transaction.
Transfer of funds from NRO account to a NRE account should be done fast to reduce tax payments and enjoy other benefits.