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 refers explicitly 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.
Key Takeaways
- NRI repatriation means the transfer of funds from India to a foreign country.
- You need to maintain certain types of bank accounts as an NRI to repatriate funds, which is either NRO, NRE, or FCNR.
- Funds held in an NRE account are freely and fully repatriable. It means you can transfer them abroad without any limits.
- An NRO account is for depositing income earned in India, like rent or interest. You can transfer funds from an NRO account. However, it is subject to a limit of 1 million USD in a financial year.
- You can utilize an FCNR account to repatriate funds, which are held in a foreign currency.
- If you want to repatriate above 1 million USD, you can apply to the RBI (Reserve Bank of India) and request special permission.
What is NRI Repatriation and Why is it Important?
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.
Types of Repatriable NRI Bank Accounts in India
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 (Non-Resident Ordinary) 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 in accordance with 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 (Non-Resident External) 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 (Foreign Currency Non-Resident) 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 and Funds Can NRIs Repatriate from India?
As an NRI, you can repatriate the income earned through the following means:
- Sale of assets in India.
- Inherited assets.
- Income earned through investments.
- Income earned on funds or assets in India by NRIs before they move to a foreign country.
- Income earned through rents.
- Income earned through funds that you transferred to India as part of overseas remittances.
Documents Required for NRI Repatriation (2025)
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.
Documents for Repatriation from NRO Account (Form 15CA/CB, Etc.)
- A photocopy of an NRI's passport and a residence permit or a valid visa.
- Bank statements to prove the existence of the NRO (Non-resident Ordinary) account.
- Form 15 CA. This form is a self-declaration form regarding the remittance of funds from India.
- Form 15 CB is a certification that a CA issues after verifying the payment of taxes.
- Lastly, the NRI needs a request letter for repatriation or the application for remittance abroad (ARA).
Documents for Repatriation from NRE & FCNR Accounts
- Copy of the passport of the NRI, which shows the address as well as the identity.
- Bank statements to prove the existence of FCNR (Foregin Currency Non-Resident) and NRE accounts.
- A declaration form stating that the repatriated funds are eligible for transfer and comply with FEMA (Foregin Exchange Management Act) regulations.
NRI Repatriation Limits Under RBI/FEMA Rules 2025
NRIs can choose to repatriate funds from any NRI account they want; however, each account is subject to specific rules and limitations.
Repatriation Limit from NRE Account – Full Transfer of Funds
| Type Of Income |
Repatriation Limit |
| Salary, Investments, Interest, Profits from any proprietorship or business held under the NRE account |
No Limit |
| Movable assets balance, sales from assets acquired in India through the legacy, inheritance, or settlement |
1 million USD per financial year |
| Income from immovable assets, like revenue from the sale of the residential property you bought in India, as per FEMA. |
1 million USD per financial year |
Repatriation Limit from NRO Account – USD 1 Million Scheme
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 through rent, inheritances, and property sales will be taxed first, and then they will be eligible to repatriate.
Repatriation Limit from FCNR Account – Principal & Interest
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 source.
FEMA & RBI Guidelines for NRI 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 will have to settle the tax implications while repatriating funds abroad.
- You can collectively repatriate the current income at any time of the year or in the following years.
- You can repatriate funds from an NRE (Non-Resident External) account without any tax limitations.
- 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 in 2025
Nowadays, NRIs seek investment options in India that can be easily repatriated. Here is a list of such investment options:
Equity Investment: Through the Portfolio Investment Scheme (PIS), non-resident Indians (NRIs) can conveniently invest in the NSE and BSE. Investments made under this scheme can be easily repatriated.
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.
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.
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.
Why Choose SaveTaxs for NRI Repatriation & Tax Compliance?
Repatriation of funds is subject to tax implications, rules, and regulations set by the RBI and FEMA (Foreign Exchange Management Act), making the entire process overwhelming. One needs to have a solid understanding of Indian taxation laws and FEMA compliance 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 CB, 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.
Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.
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