How to deposit Indian Rupees to NRE Account? Can you transfer from Saving, NRO or another NRE Account?

If you know about NRI banking facilities and different accounts they can open in India i.e. NRE, NRO, FCNR, and RFC then you know that there are different rules to deposit money on these accounts, but it's not clear to many Non-resident Indians. Most of the doubt comes from the fact that NRE account is a Rupee saving account but you cannot deposit Indian Rupees into It. There are some strict rules to deposit funds into NRE saving accounts. Some of the common questions many NRI friends ask me is that is it possible to transfer money to NRE account from India? or how to transfer money from savings account to NRE account, or can you deposit Indian rupees to NRE account etc. The short answer to this question is No, you cannot deposit Indian rupees into NRE account, nor can you transfer funds from your saving accounts to NRE account.

As the name suggests, NRE stands for Non Resident External account, which means a source of money into NRE account must be abroad. This means you cannot transfer money earned in India into this account. For that, you need to use the NRO account, which allows you to deposit Indian rupees.


Same is true when it comes to transferring money from savings account to NRE account. If you are holding a resident saving account, which is held by Indians living in India then you cannot transfer money from that account to your NRE account, as the source of the fund will then be local as opposed to external.

The only way to transfer money to NRE account from India is by using another NRE account because the source of funds from that account is external. So, for example, if you or your spouse have NRE saving accounts then you can transfer funds to each other.

Also if you have multiple NRE accounts e.g. on ICICI Bank, HDFC Bank, and Kotak bank then also you can transfer Indian rupees from one NRE account to another account, that's perfectly legal and possible.

It's also better to have multiple NRE accounts for convenience and security reasons. It's not safe to put all your money into one bank because then you would be stranded if you cannot access their services.

Having money in different NRE account not only make your money more accessible
as you now have three sources to withdraw money but also keep your money secure in case your bank goes down.

Another way to transfer money to NRE account from India is by using NRO account. RBI allows you to transfer funds from NRO to NRE account but you need to complete the same set of paperwork you need to do while sending money to abroad from NRO account e.g. paying tax and submitting proof to your bank. The cash limit of sending money to overseas from NRO account is 1 million USD per year.

That's all about how to transfer money to NRE account from India. It's only possible if you are using another NRE account. It's not possible to transfer money from savings account to NRE account, particularly resident saving account. Though you can also send money to NRE account from your NRO saving account you need to complete the paperwork required.

Other Articles about NRE account you may find useful:
How to reduce the tax on NRO fixed deposit using DTAA?
10 benefits of NRE bank account and fixed deposits
How to open NRE account online from abroad?
10 ways to fund your NRI banking account?
What is the difference between NRE and NRI bank account?
How to send money to Overseas from NRE bank account?

Can you deposit INR on NRE bank account?
Is it mandatory to declare your foreign bank assets while filing income tax returns in India

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