Can I transfer money from NRE account to savings account?
Yes, its easy to transfer from a NRE account to a Indian domestic savings account.
Just add the payee as NEFT or RTGS payee and initiate the transfer..
Is it illegal for NRI to have savings?
Yes. According to the FEMA regulation, it is illegal for NRIs to hold resident savings account in India. You will need to convert your resident savings account into an NRO account. If you continue to use your resident account, you might incur huge penalties.
Can I have both NRE and savings account?
As per the Foreign Exchange Management Act (FEMA), an NRI cannot have a savings account in their name in any banks in the country. It is mandatory for NRIs to get their accounts converted to either an NRE or an NRO account as their residential status changes.
Can I convert my savings account to NRO?
Banks prescribe specific forms for the conversion of existing savings accounts to NRO accounts. Forms can be obtained from the bank or downloaded from the bank website. All holders are required to sign the form. One form can be used to convert all savings accounts held with the bank against the same customer ID.
Which account is better NRE or NRO?
You should opt for NRE Accounts if you want to hold or maintain your overseas earnings in Indian currency. NRE Accounts are also suitable if you wish to keep your savings liquid. You should opt for NRO Accounts if you want to save your earnings from India in Indian currency itself.
Can money be transferred from NRO to NRE account?
The Reserve Bank of India (RBI) now permits transfer of funds from an NRO account to an NRE account within the overall ceiling of $1 million per financial year subject to payment of tax, as applicable. You could consider transferring the funds back to your NRE account after paying taxes.