How to Deposit Money in Your NRE or NRO Savings Account?


Now that your new NRE or NRO account is ready to use, do you know how to deposit funds in these accounts? This post will help you understand the deposit process in detail.

As an NRI, you cannot open or operate a regular bank account in India. To make banking easier for the NRIs, banks now offer many different types of NRI bank accounts like NRE, NRO, and FCNR. NRIs generally preferNRE and NRO accounts.

However, not many of them who’ve recently opened an NRI bank account know how to deposit funds in their NRE or NRO savings account. If you are struggling with the same, here are some of the most important things you should know-

Depositing Funds to an NRE Account

You might already know that NRIs use an NRE (Non-Resident External) savings account for transferring their foreign earnings to India. While it is a Rupee denominated account, you can deposit your overseas earnings in currencies like USD, GBP, etc. in this account. Note that you cannot deposit your Indian earnings in your NRE savings account.

Here are the different ways in which you can deposit or transfer your foreign earnings to your NRE account in India-

  • Online fund transfer facility of your local bank
  • Online/offline international remittance service
  • Direct deposit to the international branch of your Indian bank
  • Foreign currency demand drafts, cheques, or money orders
  • Direct foreign currency cash deposit or traveller’s cheque deposit in India

Depositing Funds to an NRO Account

Unlike the NRE account, an NRO (Non-Resident Ordinary) savings account is for NRIs who want to deposit income that originates in India. For instance, rent, dividends, or gains from any kind of investment in India can be deposited into an NRO account. An NRO account is just like a regular account that is used by resident Indians with the only difference that it can only be opened by an NRI.

Here are the different ways in which money can be deposited in your NRO account in India-

  • Online fund transfers like NEFT and RTGS from regular Indian bank accounts
  • Direct cash deposits
  • Deposits through cheques, demand drafts, and money orders

Repatriation of Funds Deposited in NRE and NRO Accounts

In case if you’d like to repatriate or transfer funds deposited into your NRE or NRO account to your current country of residence, the same can be easily done online. An NRE savings account is fully repatriable, and you can freely repatriate the entire amount, including the interest amount, to any foreign country. Also, an NRE account is a tax-free account.

But with an NRO savings account, you can only repatriate up to USD 1 million of the principal amount in a financial year. The entire interest amount can be repatriated with no restrictions. Note that the interest you earn from an NRO account is taxable in India. But you can take advantage of DTAA to reduce your tax liabilities.

Access Banking Facilities in India with Your NRE and NRO Savings Accounts

Opening an NRE or NRO account is the best way for the NRIs to access banking facilities in India. As can be seen above, both the accounts allow you to deposit funds in them in many different ways.

As long as you’ve selected a top Indian bank for your NRI bank account, rest assured that you’ll experience the utmost convenience in accessing and using a host of banking products and services in India even when you are thousands of miles away.

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