Can my friend in India transfer money to my NRE account?
Another question you may have is- can I deposit money in NRE account from India? You cannot transfer money to a NRE account from a savings account in India. However, you can transfer money from NRO to NRE account. You can also transfer money from one NRE account to another.
Yes, NRE to NRE/Resident-Savings account is allowed like other transactions regardless of self or friend's account.
The Reserve Bank of India allows the transfer of funds up to USD 1 million a year from an NRO to an NRE account.
As per the RBI guidelines gifts and loans received from specified relatives can be deposited in the NRO account. The amount that each of the specified relatives can lend you is restricted to 2.50 lakh USD every year. The specified relatives are those relatives that are specified under the Companies Act, of 1956.
Account details of recipient – One may transfer funds from outside India to India either in his/her name or in the name of someone else. Such persons may be parents, relatives, or even friends. There are no restrictions in terms of transferring funds to any bank account in India through normal banking channels.
Money can be sent to your NRE account from the United States through a wire transfer. You can use the bank's online money transfer service. You can also use a third-party money transfer service. It is best to research the best exchange rate.
Limitations of NRE Accounts
The crucial limitation of these accounts is that they cannot be used to deposit the money earned by an NRI inside the country. While there are numerous NRE account benefits, NRIs have to opt for an NRO account to save their earnings made in India.
An NRE Account or Non-Resident External Account offers you this facility. Here, your money is converted into Indian Rupee or INR at the time of deposit. This means that you can deposit money in any foreign denomination, e.g. US Dollar and withdraw it in Indian Rupees.
International money transfer limit: IRS
The IRS doesn't place limits on the amounts of money being sent, but there are reporting requirements for payments valued at 10,000 USD or more — or individual payments made within a short period which in total add up to over 10,000 USD.
Understanding tax implications on remittance to India
As an NRI, you are not subject to taxation on the money you send to India. However, sending money to India from overseas will have tax implications for the recipient who is a resident of India. This will depend on the purpose of the remittance.
Can someone from India transfer money to my NRO account?
Funds originating from a foreign country (foreign currency) can be deposited in both NRE and NRO accounts. However, funds originating in India i.e. in Indian Rupees or INR can be deposited only in NRO Accounts and not an NRE Account.
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.
A resident who is your close relative can also make gift or lend money to you in Indian rupee and the same can be deposited in your NRO account. Sale proceeds of property owned by an NRI can likewise be deposited in the account.
As per the Liberalized Remittance Scheme (LRS) limit, USD 2,50,000 or its equivalent can be remitted abroad in a financial year. RBI approval is required if the remittance amount exceeds this limit.
Monetary and non-monetary gifts received from friends will be charged to tax (provided the above criteria of taxing gift are satisfied) since friends are not considered 'relatives' for this purpose.
There is no limit to repatriate funds from NRE accounts as it is fully and freely repatriable from India. NRE Deposits are tax-free in India as NRE Accounts are meant to maintain the income earned outside India.
* Please note that the debit cards linked to NRE accounts can be used across the world. However, the debit cards which are linked to NRO accounts are non-chip based and can be used only in India and for domestic online transactions initiated on merchant website(s) based in India.
- Please login to your INB account.
- Click on 'Payments / Transfers' tab.
- Click on 'International Funds Transfer' appearing in the column on left hand side.
- Click on 'NRI - Outward / Inward Transfer / Remittances'
- Please select / enter request details and proceed accordingly.
NRIs can use UPI while staying abroad by linking their Non-Resident Ordinary (NRO) or Non-Resident External (NRE) accounts with a UPI-enabled app, added Kunal.
Interest earned on an NRE Account or NRO Account is Taxable in the U.S. including NRE FD and NRO FD interest. You have to add all your income from India to your US income and pay taxes if you are a Green Card holder, PIO, OCI, or legal resident (working on H1B, L1B, H4 EAD, or any other work visa in the USA).
What are the rules for a NRE account?
NRE accounts should be designated as resident accounts or the funds held in these accounts may be transferred to the RFC accounts, at the option of the account holder, immediately upon the return of the account holder to India for taking up employment or on change in the residential status.
- Gather the NRE account details.
- Choose how to make your transfer.
- Identify how much you want to send.
- Confirm the bank details and sending amount.
- Pay for the transaction.
- Submit the transfer.
Money Transfer Options
You can send money from USA to India offline or online through foreign demand drafts, wire transfers or correspondent bank transfers. Online transfers into an NRE account are all the more convenient because they are faster and there is no limit on the amount you can transfer per year.
An RFC (Resident Foreign Currency) Savings Account is a savings account maintained in foreign currencies - USD and GBP - for NRIs who have returned to India and hold funds in foreign currency.
- Income tax slabs for NRIs are based only on income. ...
- All incomes of NRIs are charged irrespective of any threshold value for TDS.
- Nominal deductions are not applicable on investment income, except under specific situations.
References
- https://www.instarem.com/blog/how-to-transfer-money-from-usa-to-india-without-tax/
- https://www.aljazeera.com/economy/2023/5/31/infographic-how-does-us-debt-rank-compared-world
- https://en.wikipedia.org/wiki/National_debt_of_China
- https://www.icicibank.com/blogs/nri-banking/important-for-nri-to-open-nre-nro-account
- https://ycharts.com/indicators/us_per_capita_public_debt
- https://www.thehindubusinessline.com/money-and-banking/icici-bank-surpasses-hdfc-banks-valuations-after-q3-show/article67768928.ece
- https://www.pgpf.org/infographic/the-national-debt-is-now-more-than-34-trillion-what-does-that-mean
- https://www.tatacapital.com/blog/loan-for-home/can-you-get-90-percent-home-loan-rbi-guidelines/
- https://www.investopedia.com/articles/markets-economy/090616/5-countries-own-most-us-debt.asp
- https://www.bankbazaar.com/savings-account-guide/nre-savings-account-vs-nro-savings-account.html
- https://www.forbes.com/advisor/in/banking/nre-savings-account-for-nri/
- https://www.quora.com/Which-is-the-best-bank-to-take-NRI-account
- https://www.investopedia.com/do-s-and-don-ts-of-lending-to-friends-and-family-5088469
- https://www.paisabazaar.com/tax/tax-on-gifts-in-india/
- https://edurev.in/question/1577842/Which-among-the-following-is-the-Biggest-Borrower-
- https://www.paisabazaar.com/personal-loan/sbi-personal-loan-interest-rates/
- https://www.quora.com/Is-money-lending-without-license-is-crime-in-India-Is-it-legal-to-charge-45-interest-Per-annum-If-it-is-crime-then-what-will-be-punishment
- https://en.wikipedia.org/wiki/External_debt_of_India
- https://www.livemint.com/money/personal-finance/non-resident-ordinary-nro-account-money-transfer-to-taxation-explained-11655610315992.html
- https://www.livemint.com/economy/imf-warns-of-indias-rising-debt-and-climate-change-risks-but-govt-disagrees-says-report-11703219647258.html
- https://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp
- https://smallbusinessresources.wf.com/what-to-consider-when-borrowing-from-family-and-friends/
- https://www.taxpolicycenter.org/briefing-book/how-does-federal-government-spend-its-money
- https://www.credible.com/personal-loan/30k-loan
- https://www.vedantu.com/commerce/debt-free-countries
- https://wallethub.com/personal-loans/quick
- https://www.hdfcbank.com/personal/resources/learning-centre/borrow/everything-you-need-to-know-about-a-personal-loan
- https://www.buddyloan.com/blog/top-10-banks-in-india/
- https://www.paisabazaar.com/icici-bank/personal-loan/
- https://www.fdiintelligence.com/content/data-trends/the-world-banks-top-10-biggest-debtors-82044
- https://www.cnbc.com/2024/03/01/the-us-national-debt-is-rising-by-1-trillion-about-every-100-days.html
- https://www.hdfcbank.com/personal/save/accounts/current-accounts/e-commerce-current-account/fees-and-charges
- https://www.policybazaar.com/life-insurance/investment-plans/articles/nri-vs-nre/
- https://www.tataaia.com/blogs/nri/income-tax-new-rules-for-nri-in-india.html
- https://www.hdfcbank.com/nri-banking/save/nri-accounts/savings-account/nri-account-for-indians-in-usa
- https://wise.com/in/blog/how-to-transfer-money-to-nri-account
- https://www.bookmyforex.com/money-transfer/send-money-to-usa/
- https://www.newsclick.in/debt-haunts-india-and-govt-not-helping
- https://www.5paisa.com/blog/top-private-banks-in-india
- https://sbnri.com/blog/repatriation/what-is-the-limit-to-repatriate-funds-from-nre
- https://www.hdfcbank.com/personal/resources/learning-centre/save/nri-account-benefits-that-you-need-to-know
- https://www.linkedin.com/pulse/who-going-buy-all-us-debt-rod-khleif-gdete
- https://www.businesstoday.in/markets/company-stock/story/icici-bank-vs-hdfc-bank-which-of-the-two-is-a-must-own-stock-herere-share-price-targets-414491-2024-01-23
- https://www.bajajfinserv.in/insights/ideal-credit-scores-to-have-when-applying-for-loans
- https://commodity.com/data/debt-clock/
- https://www.bajajfinservmarkets.in/fixed-deposit/safest-bank-in-india.html
- https://www.marketplace.org/2023/05/26/who-does-the-u-s-owe-31-4-trillion/
- https://www.idfcfirstbank.com/finfirst-blogs/nri/nre-vs-nro-account-what-is-better-for-nri
- https://www.icicibank.com/nri-banking/bankaccounts/foreign-currency-account
- https://www.rocketloans.com/learn/personal-loan-basics/easiest-loan-to-get
- https://www.bankbazaar.com/personal-loan-interest-rate.html
- https://www.icicibank.com/nri-banking/bankaccounts/world-debit-card
- https://groww.in/loans/sbi-home-loan-interest-rates
- https://www.quora.com/How-much-does-the-UK-owe-the-US
- https://www.investopedia.com/articles/economics/11/successful-ways-government-reduces-debt.asp
- https://www.fool.com/the-ascent/personal-loans/how-to-borrow-large-sum/
- https://stockpe.app/blog/hdfc-vs-icici-vs-axis/
- https://en.wikipedia.org/wiki/Financial_position_of_the_United_States
- https://www.screener.in/screens/214278/debt-free-companies/
- https://groww.in/p/nri-account
- https://ktktld.edu.vn/which-bank-gives-personal-loan-easily-philippines.html
- https://www.worldbank.org/en/about/leadership/managers
- https://www.quora.com/Is-it-possible-get-a-loan-from-an-overseas-bank-that-does-not-operate-in-my-country-If-not-why
- https://www.stilt.com/loans/india-home-loans/
- https://www.bajajfinservmarkets.in/loans/home-loan/70-lakhs-home-loan-emi.html
- https://en.wikipedia.org/wiki/National_debt_of_the_United_States
- https://sbi.co.in/web/nri/accounts/non-residential-external
- https://www.experian.com/blogs/ask-experian/personal-loans-what-to-know-before-you-apply/
- https://www.credible.com/personal-loan/loans-for-non-us-citizens
- https://www.thebalancemoney.com/who-owns-the-u-s-national-debt-3306124
- https://www.cbsnews.com/minnesota/news/good-question-how-did-the-u-s-debt-get-so-high/
- https://www.icicibank.com/blogs/nri-banking/money-transfer-tips-for-nris-living-abroad
- https://www.hdfcbank.com/personal/resources/learning-centre/save/know-what-is-nre-account-and-its-benefits
- https://www.ceicdata.com/en/indicator/russia/national-government-debt
- https://www.paisabazaar.com/hdfc-bank/personal-loan-interest-rate/
- https://sbnri.com/blog/nri-bank-accounts/indian-banks-in-usa
- https://www.hdfcbank.com/personal/resources/learning-centre/save/what-is-average-monthly-balance-and-its-benefits
- https://www.hdfcbank.com/personal/resources/learning-centre/pay/money-transfer-limit-for-nris
- https://dea.gov.in/sites/default/files/India%27s%20Quarterly%20External%20Debt%20Report%20for%20quarter%20ending%20September%202023_0.pdf
- https://www.hdfcbank.com/personal/resources/learning-centre/save/transfer-money-from-usa-to-india
- https://www.lendbox.in/blogs/lend-money-legally-india/
- https://www.livemint.com/money/ask-mint-money/can-non-residents-borrow-from-relatives-and-deposit-in-an-nro-account-without-proof-of-funds-11700887913889.html
- https://www.livemint.com/money/personal-finance/top-10-personal-loans-from-banks-with-lowest-interest-rates-details-here-11706011927426.html
- https://worldpopulationreview.com/country-rankings/countries-by-national-debt
- https://www.quora.com/How-do-non-resident-Indians-NRIs-get-a-house-loan-in-India-after-moving-abroad
- https://lazypay.in/personal-loan
- https://www.statista.com/statistics/1226054/value-of-united-states-treasury-securities-held-by-russia/
- https://www.forbesindia.com/article/explainers/top-10-banks-india-by-market-cap/87913/1
- https://www.am22tech.com/us-tax-on-nre-interest/
- https://www.bankofbarodakenya.co.ke/personal-banking/retail-loans/baroda-personal-loans
- https://www.creditmantri.com/nri-home-loan/
- https://wallethub.com/best-banks-for-personal-loans
- https://www.quora.com/Is-it-possible-to-take-a-loan-from-the-USA-at-a-low-interest-rate-from-India-and-make-it-a-fixed-deposit-in-India-to-get-a-profitable-income-every-month-Is-it-legal-and-feasible
- https://groww.in/p/nre-account
- https://www.hdfcbank.com/nri-banking/save/nri-accounts
- https://www.hdfcbank.com/personal/resources/learning-centre/save/how-to-choose-a-bank-which-is-trustworthy
- https://en.wikipedia.org/wiki/List_of_countries_by_external_debt
- https://www.chittorgarh.com/compare-nri-accounts/icicidirect-vs-hdfc-securities/1/6/
- https://www.icicibank.com/nri-banking/nriedge/nri-articles/sending-money-to-india-from-abroad-a-guide-for-nris
- https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/
- https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=3
- https://tax2win.in/guide/income-tax-on-loan-taken-from-friends-or-relatives
- https://www.clearfinances.net/countries-without-public-debt/
- https://www.livemint.com/money/personal-finance/upi-payment-how-nris-would-benefit-from-global-expansion-of-this-made-in-india-payment-system-11708417514693.html
- https://www.cadtm.org/In-9-Charts-India-s-Growing-Debt-Problem-Has-Crisis-Like-Symptoms
- https://www.bankbazaar.com/credit-card/hdfc-credit-card-international-transactions-charges.html
- https://money.stackexchange.com/questions/159237/can-my-friend-transfer-from-his-indian-nre-account-to-my-nre-account
- https://www.hdfcbank.com/personal/borrow/popular-loans/personal-loan/eligibility
- https://www.quora.com/What-would-happen-if-China-told-the-USA-they-are-calling-in-all-of-their-debts-and-want-their-money-now
- https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/
- https://www.icicibank.com/personal-banking/loans/personal-loan
- https://www.investopedia.com/how-to-get-a-usd200-thousand-personal-loan-8410202
- https://www.quora.com/How-can-I-give-a-loan-to-my-relative-with-a-legally-binding-document-in-India
- https://www.hdfcbank.com/personal/resources/learning-centre/save/difference-between-nre-and-nro-account
- https://indianexpress.com/article/explained/explained-economics/three-ways-to-deal-with-the-high-govt-debt-9144329/
- https://www.quora.com/How-much-external-debt-does-the-USA-owe-to-India
- https://money.com/dollar-scholar-government-print-more-money/
- https://www.dbs.com/in/treasures/nri-banking/remittance/money-transfer-from-usa-to-india
- https://www.businesstoday.in/bt-tv/video/ril-lt-tata-motors-among-the-list-of-top-10-companies-with-highest-debt-in-india-411206-2023-12-28
- https://www.hdfcbank.com/personal/resources/fees-and-charges/fees-and-charges-nri
- https://www.quora.com/Which-bank-provides-a-100-home-loan
- https://ashutoshfinserv.com/fema-regulation-for-nris/loans-by-nri-oci-to-resident-indians/
- https://www.hdfcbank.com/nri-banking/save/nri-accounts/savings-account
- https://www.hdfcbank.com/nri-banking/correspondent-banks
- https://www.buddyloan.com/blog/personal-loans-on-50000-salary/
- https://m.economictimes.com/wealth/save/how-to-transfer-money-from-an-nro-to-an-nre-account/articleshow/97121805.cms
- https://unacademy.com/content/general-awareness/list-of-top-10-finance-companies-in-india/
- https://www.tataaia.com/blogs/nri/nri-gift-tax-in-india.html
- https://wise.com/us/blog/international-wire-transfer-limits-us
- https://thewire.in/government/imf-warns-india-on-debt-concerns-says-it-may-exceed-100-of-gdp-centre-disagrees
- https://www.cfr.org/backgrounder/us-national-debt-dilemma
- https://en.wikipedia.org/wiki/National_debt_of_Pakistan
- https://tax2win.in/guide/income-tax-for-nris
- https://www.usatoday.com/story/money/2024/01/16/what-national-debt-means-for-you/72111112007/
- https://www.pgpf.org/top-10-reasons-why-the-national-debt-matters
- https://www.edelmanfinancialengines.com/education/financial-planning/lending-money-to-family-or-friends/
- https://lendingplate.com/blog/lending-money-to-friends-important-things-to-keep-in-mind
- https://www.quora.com/How-many-debts-of-China-are-there-in-India
- https://www.visualcapitalist.com/government-debt-by-country-advanced-economies/
- https://www.bajajhousingfinance.in/how-much-home-loan-can-a-nri-get-in-india
