Dubai: As an NRI or Non-Resident Indian living in the UAE, if you were wondering what is the maximum amount of money that you can send back home, here are the pertinent laws in India that regulate how much you can or cannot remit.
Under the exchange control law, as an NRI, you are allowed to remit up to $1 million (Dh3.67 million) from your NRO account (explained below what it is) after you furnish necessary documentary evidence.
Remittance exceeding $1 million (Dh3.67 million) requires special permission from the Indian central bank, the Reserve Bank of India (RBI). But first, a quick brief look at what are NRE and NRO accounts.
Ask Money Today: NRO vs NRE accounts - which one to choose for stock market investment?
If an NRI has an income of any source from India, then NRO account will be advisable; If they have income only from outside India and want to remit in India, then NRE account is advisable
I am a 35-year-old NRI based in the US for the last two years. I am willing to start investing in mutual funds via SIP mode in India. I hear there are two types of bank accounts for NRIs. Which one should I choose for a simple process and better tax advantage?
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Highlights
One is NRE (Non Resident External) Account.
Other is NRO (Non Resident Ordinary) Account.
As per FEMA regulations, a Non-residential Indian or NRI cannot have a savings account in India. They need to transfer their bank account in India to an NRI account for;
● Holding their foreign earnings in Indian currency, or,
● Holding their Indian earnings in Indian currency
Alternatively, you can close your existing bank account and open a new NRI account from scratch.
There are two types of NRI accounts broadly;
1. NRE (Non Resident External) Account
2. NRO (Non Resident Ordinary) Account
Both these accounts are rupee-denominated accounts and can only be opened by an NRI or PIO (Person of Indian Origin). Moreover, both come in two variants - current and savings account.