RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A. P. (DIR Series) Circular No.117
May 07, 2012
To
All Authorised Dealer banks and Authorised banks
Madam/Sir,
Transfer of Funds from Non-Resident Ordinary (NRO) account to Non-Resident
External (NRE) Account
The Committee to Review the Facilities for Individuals Under FEMA, 1999
(Chairperson : Smt. K.J.Udeshi) has recommended that the NRIs/PIOs may be
permitted, subject to payment of applicable taxes, to transfer repatriable funds
from their NRO account within the overall ceiling of US $ 1 million per
financial year, for credit to their NRE account in India. At present transfer of
funds from NRO to NRE account is not permissible.
- On a review, it has been decided that henceforth NRI as defined in Foreign
Exchange Management (Deposit) Regulations, 2000 contained in
Notification No.
FEMA.5/2000-RB dated 3rd May 2000, as amended from time to time, shall be
eligible to transfer funds from NRO account to NRE account within the overall
ceiling of USD one million per financial year subject to payment of tax, as
applicable (i.e. as applicable if funds were remitted abroad). Such credit of
funds to NRE account shall be treated as eligible credit in terms of paragraph
3(j) of Schedule-1 of Notification No. FEMA.5/2000-RB dated 3rd May 2000.
- All Authorised Dealer banks and Authorised banks may bring the contents of
this circular to the notice of their constituents and customers concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions/approvals, if any, required under any other
law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager
RBI/2011-12/536