What is NRE Account ?

in Q & A

What is (NRE) Non-Resident External Rupee Account ?

A NRE (Non-resident External Accounts) account is a Rupee denominated account. Funds in NRE account is maintained in Indian rupees only. Any interest earned on this account are exempt from tax

Key Features of NRE (Non Resident External) accounts

  • Funds in a NRE account will be maintained in Indian Rupees
  • Source of funds into NRE accounts must be from your earnings abroad or from another NRE / FCNR-B account maintained in India
  • Funds can be transferred from an NRE account to an NRO , NRE or Resident account
  • You can have joint account with other NRIs
  • Funds in NRE account is repatriable (That is, funds can be converted to any foreign currency)
  • Interest income earned on the money in a NRE account is non-taxable in India
  • NRI can have joint account with other NRIs ( Resident Indians cannot be joint account holders in NRE accounts)
  • Power of attorney holder can operate the account ( that is, Power of attorney can make local, rupee payments on behalf of the NRI )
  • NRE account is converted into a regular resident account if NRI returns to India permanently

{ 23 comments… read them below or add one }

Nagraj N Mujumdar June 10, 2011 at 9:35 am

I would like to ask whether I can open my Indian Savings Bank Account and NRE account in the same bank? Is there any regulation by RBI or Income Tax?
Thank You


j p suman July 12, 2011 at 10:59 am

Hi Dear majumdar,
Yes you can open NRE and Saving account in same bank.


sarav July 26, 2011 at 3:32 pm

is it possible to transfer from local account to My NRI account?


Surya August 9, 2011 at 12:57 am



yogita September 16, 2011 at 2:12 pm

no its not allowed to transfer from any indian account as nre acct means the person who is earning abroad and paying tax abroad only can send money to india.


gajanan August 22, 2011 at 11:48 pm

Is there a rupee or dollar limit ( how much) as to how how much one can send to NRE account?


shreya September 29, 2011 at 6:16 am

Is there a provision to send INR instead of foreign curreny from abroad to NRE account?


j p suman December 10, 2011 at 12:59 pm

yes, u can send. but, the exchange charge( foreign currency to INR) will b more and u will get INR according to present currency rate.


shashi tripathi October 10, 2011 at 8:14 am

Dear Sir

i have NRI Account , but my Passbook show saving account , how to conferm my account is NRI YA saving account bank SBI



j p suman December 10, 2011 at 1:01 pm

simply, it may b typing mistake. Go to branch n resolve the doubt.


Harshal October 21, 2011 at 11:45 am


I have NRE account and would like to know how to tranfer / convert INR in USD. I want to tranfer it from SBI to BOA.
Is there any transaction fees plus service tax applicable to this transaction?
Whom to contact in SBI for same?


Gautam October 30, 2011 at 11:28 am

I am currently working at aborad. I need following clarification in terms of opening an NRE account.

Is it possible for me to Remit online the amt from abroad to NRE accnt in India? eg: Using service like Remit2India to NRE accnt

Can I do Online transaction to any other beneficiary Indian accounts from NRE account ? eg: Transact online from my NRE account to my Dad’s accnt in India.

From abroad, If I go on short term vacation to India, will it be possible for me to do cash withdrawel in INR , Perfrom any other transactions[Like Purchase of Grocery,TV; Buy Air/Train tkts online], Pay LIC premimum in India ?

Your help is highly appreciated.


j p suman December 10, 2011 at 1:05 pm

yes, u can do every operation except deposit.


syed zammad November 24, 2011 at 5:26 am

Dear sir,

I have NRE account in one perticular Bank and would like to open another one in another bank, and transfer the amount form first one to second. Is it permitted to do so?


Sunil Pansare December 23, 2011 at 11:54 pm

Hello sir!
My brother who is in Singapore would like 2 open an NRE account. But he wouldn’t be coming soon to India. Is it possible to do the same from there? Can he open an account in the name of his minor daughter?
Kindly guide.
Thank you.


priyanka December 28, 2011 at 3:07 pm

i m on the dependent visa and m living in UK..
if i want an account wher i need o transfer from indian currency to pounds ? i m unaware of ll these things… please help..


Prashant January 9, 2012 at 8:09 am


Seems NRE accounts have are more beneficial to NRO accounts. I wounder what is the intention behind opening NRO accounts at all?



jeofrey January 18, 2012 at 3:53 pm

You can deposit into an Nre account while in India however it must be in foreign currency and the value given is as per standard market rates at the time.. Some people think that they can exchange money in the gray market and obviously you would get more value, but this can’t be deposited in an NRE account only in qn NRO. However NRO accounts are subject to tax as the money being deposited in the Indian denomination ie; from within India rather than from outside the country which would be foreign funds to Rupee conversion.


jay January 23, 2012 at 4:18 pm


i like to know that if i save money in NRE account for 1 year.
is it compulsory to take money back or i can continue to save money for next year? thank you.


kamaljit singh February 15, 2012 at 1:46 am

I want yo know how an Indian resident can deposit miney in NRE account?


Arun March 6, 2012 at 2:22 pm

I am working in America, just moved here two weeks before. Is it possible for me to open a NRE Account from here? (Preferably HDFC Bank)


rekha naik March 10, 2012 at 7:22 am

I want to know whether any charges for sending money from overseas bank to nre account in india. and while withdrawing the money from nre a/c.


sangeetha March 11, 2012 at 4:32 am

Hi ,

I am staying abroad & I have an account here in this country.
I have registered Online transfer facility with My abroad bank to Indian Saving Bank account and I am able to transfer money . Is it taxable? Is it legal to transfer from Abroad to Non NRI Accounts in India?



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