Home/Nri/Nre Nro Fcnr Bank Accounts Guide
RBI Master Direction & FEMA Compliant 2026

NRE vs NRO vs FCNR Bank Accounts Guide

Complete comparative breakdown of non-resident bank accounts in India under RBI FEMA guidelines, interest taxability, foreign exchange rules, and USD 1M repatriation workflows.

Interactive NRI Account Comparator

Select an account type to view official tax rules, repatriation limits, and FEMA compliance mandates.

Master NRI Account Comparison Matrix

FeatureNRE AccountNRO AccountFCNR(B) Deposit
Income Source AllowedForeign income only (USD, EUR, GBP, AED)Indian income (Rent, Dividend, Property sale) + ForeignForeign income only
Indian Taxability100% Tax-FreeTaxable at 30% + Cess100% Tax-Free
RepatriabilityUnrestricted (100% freely transferable)Up to USD 1,000,000 per financial yearUnrestricted (in Foreign Currency)
Fx Rate RiskExposed to Rupee fluctuationExposed to Rupee fluctuationZero Fx Risk (Held in USD/GBP/EUR)

Repatriating Funds from NRO to Overseas Bank

Under RBI FEMA Master Directions, NRIs can repatriate up to USD 1 Million per financial year from their NRO accounts representing legitimate Indian income or property sale proceeds.

Mandatory Repatriation Documents
  1. Form 15CA: Online declaration generated by the taxpayer on the e-filing portal.
  2. Form 15CB: Certificate issued and digitally signed by an active Indian Chartered Accountant certifying tax payment.
  3. Bank A2 Form: FEMA application form submitted to the Authorized Dealer (AD Category I Bank).

Frequently Asked Questions

An NRE account is meant for transferring foreign earnings into India and is 100% tax-free with full foreign repatriation. An NRO account is used to manage income originating within India (such as rent, dividends, or property sale proceeds), and interest earned is subject to 30% TDS unless DTAA relief is claimed.

Yes. Under the RBI Liberalised Remittance Scheme (LRS) and FEMA regulations, NRIs can repatriate up to USD 1,000,000 (1 Million US Dollars) per financial year from their NRO account balances, subject to submitting Form 15CA and a Chartered Accountant certificate (Form 15CB).

Under Section 63 of FEMA, maintaining a resident savings account after acquiring NRI status is illegal. NRIs are statutorily required to convert existing resident accounts into NRO accounts or close them immediately.