Q621. Repatriate money from

NRO account in India . . .

Question: I remitted 6 lakh from my MRI foreign source funds from Citibank India to State bank Patiala (SBP). The amount was transfered in 2008 to my SBP saving resident account. I have Citibank letter regarding source of funds trnsfered to SBP.Also I have Entry in SBP bank passbook of this transaction. PL advise how I can repatriate the amount to my NRE account in Rs in indian banks. thanks Dr. Sahi Answer: If your question is how you can transfer funds from your NRO account to your NRE account, this cannot be done! • NRE deposits are made with foreign funds only and direct deposit of Indian Rupees to NRE account is not allowed. • NRO accounts are for depositing Rupee funds in India. In NRO accounts deposits can be made using foreign currency or Indian Rupees. • Funds held in NRO accounts cannot be transfered to a NRE account. However, funds held in NRE accounts can be transfered into a NRO account. If you wish to send funds from your NRO account abroad, then you can do so by following the government guidelines on repatriation of funds. Currently, the government allows NRO account holders to transfer up to USD 1 million per calendar year from balances in NRO accounts, this of course is subject to payment of any taxes that may be applicable. To repatriate funds from your NRO account, you will need to submit a funds transfer request along with Form A2 & FEMA declaration. You will also be required to submit Form 15 CA/CB. Your bank or accountant should be able to guide you in this regard.