Repatriating Funds to India: NRE/NRO/FCNR, RFC & FEMA Rules
Last verified: June 2026, against RBI Liberalised Remittance Scheme / FEMA rules and the Budget 2025 TCS changes cited below. These rules change often and individual cases vary — confirm with your authorised dealer bank or a qualified advisor before acting. This is general information, not personal financial advice.
Bringing money back to India — whether you are an NRI moving savings home, a returning NRI settling down, or a resident pulling back overseas investments — is governed by FEMA, and the rules differ sharply by account type. Get them right and the transfer is smooth; get them wrong and funds can get stuck. Here is a clear map of repatriating funds to India.
For NRIs: it depends on the account
| Account | Repatriation |
|---|---|
| NRE (rupee, foreign-earned) | Fully repatriable — principal and interest, no cap |
| FCNR (foreign currency deposit) | Fully repatriable — principal and interest, no cap |
| NRO (Indian income: rent, dividends, sale proceeds) | Up to USD 1 million per financial year, after taxes |
NRO repatriation requires a chartered accountant’s certification in Form 15CB and an online declaration in Form 15CA, confirming applicable Indian taxes have been paid.
For returning NRIs: the RFC account
When an NRI becomes a resident again, NRE and FCNR balances should be redesignated. The smart move is to convert them into a Resident Foreign Currency (RFC) account, which lets you hold the money in foreign currency (no forced rupee conversion) and remains fully repatriable if you go abroad again. NRO accounts are redesignated as resident accounts. Notify your banks promptly once your residency status changes.
The returning-resident tax window (RNOR)
For the first year or two after returning, many qualify as Resident but Not Ordinarily Resident (RNOR). During RNOR status, most foreign income is not taxed in India — a valuable window to repatriate or restructure overseas assets before you become an ordinary resident, when global income becomes taxable. See our NRI taxation and DTAA guide.
For residents: bringing back LRS investments
If you invested abroad under the LRS (foreign shares, GIFT City holdings, deposits), realised proceeds you do not reinvest must be repatriated to India within the prescribed period (generally 180 days) under the LRS framework. Gains are taxable in India and the assets disclosed in Schedule FA.
Inheritance and gifts from abroad
Money inherited or gifted from a relative abroad can generally be brought in, but documentation (will, gift deed, source of funds) matters, and gifts from non-relatives above ₹50,000 are taxable in the recipient’s hands. Keep a clear paper trail.
FAQs
How much can an NRI repatriate from an NRO account?
Up to USD 1 million per financial year, after taxes, with Forms 15CA/15CB.
Are NRE and FCNR funds fully repatriable?
Yes — both principal and interest, with no cap.
What is an RFC account?
A Resident Foreign Currency account for returning NRIs to hold foreign-currency funds without converting to rupees; it is fully repatriable.
Is foreign income taxed as soon as I return?
Not necessarily. During RNOR status most foreign income is exempt; once you become an ordinary resident, global income is taxable.
