Can I transfer money to savings account from abroad?

Government regulations. The Reserve Bank of India (RBI) introduced the ‘Liberalised Remittance Scheme’ in February 2004. According to rules and regulations of this scheme, you may remit funds from your bank account to a foreign country up to USD 250,000 per financial year.

Can NRI transfer money to savings account in India?

NRIs manage their expenses in India through two accounts- the Non Resident External (NRE) account and the Non Resident Ordinary (NRO) account. The NRE account is meant for transferring foreign earnings to India. You cannot transfer money to a NRE account from a savings account in India.

Is money sent from abroad to India taxable?

It is perfectly legal to send money to your parents in India and they will not incur any tax on the transferred amount. The money received in an Indian bank account from a relative abroad is known as inward remittance and these remittances are governed by the Foreign Exchange Management Act (FEMA).

Can I transfer money from abroad to NRO account?

NRO account holders can also transfer foreign currency into an NRO account, which will be converted to Indian Rupees or INR. Though it may only be opened by NRIs, an individual may also convert their existing resident savings account to an NRO account, when their residential status changes.

How much money can you transfer without being reported in India?

You can send up to $10,000 to India without reporting to IRS. However, under the Bank Secrecy Act, your bank will provide information on certain transactions over US$10,000 to IRS and report them as “suspicious transactions” to the US Government.

Can an NRI transfer money from an Indian bank account?

Well, once you become an NRI and do not convert your Indian saving account to an NRI category (NRO/NRE), technically nothing is stopping you from making the transfer. You can initiate the transfer using your preferred channel, and the money WILL reach your bank account in India. BUT, there’s a problem….

How to convert your savings account to NRO or NRE account?

Once you become an NRI, you can no longer keep a resident bank account and are required by law to convert your resident savings account to NRO or NRE. It is your responsibility to inform your bank to convert your savings account to NRO account.

What happens to your bank account when you move out of India?

Once you have stayed out of India for more than 182 days during the preceding financial year, your status changes from a Resident Indian to an NRI [Non-Resident Indian]. That’s when you lose certain privileges that a resident Indian has, and holding domestic savings bank account back in India is one of them.

What can I pay using an NRO account in India?

Any payments towards insurance premiums, EMIs for loans you took while in India should also be paid using NRO account. You can send money from UK to India to an NRO account without any issues as long as all taxes due are paid in the UK.