NRI Account Transfer Limit – Rules, Limits & Guidelines

Introduction

If you manage finances across multiple countries, it becomes essential to understand the regulatory framework governing cross‑border fund movement. Transfer limits can vary not only by the source of funds but also by the type of transfer—whether inward, outward, or between NRE and NRO accounts. Having clarity on these distinctions enables seamless banking, minimises compliance risks, and ensures your financial transactions remain fully aligned with regulatory expectations.

What are the Transfer Limits for International Transfers?

While there are no transfer limits for inward remittances, transfer limits for NRI accounts depend on whether you have an NRE or NRO account.

Outward Remittance from an NRE Account – No Transfer Limit

An NRE account holds income earned outside India.

• There is no limit on the amount you can transfer abroad from an NRE account
• Both principal and interest are fully repatriable
• Transfers can be made at any time, subject to standard bank process checks

Outward Remittance from an NRO Account – Annual Limit Applies

An NRO account is for managing income earned in India. Funds in NRO accounts are classified into two categories:

• Current Income: Includes rent, dividends, interest, pension, and salary. You can transfer these earnings abroad without any upper limit after paying applicable taxes.
• Capital Income: Includes proceeds from the sale of property, investments, or accumulated savings. Transfers of capital income are restricted to USD 1 million per financial year, across all NRO accounts combined.

Whether you are transferring current or capital income from your NRO account, you will be required to submit the following:

• Form 15CA is an online declaration submitted to the Income Tax Department, confirming that applicable taxes have been deducted or paid.
• Form 15CB is a certificate issued by a Chartered Accountant, validating the nature of the remittance and certifying that the correct tax has been computed and paid.
• Proof of source of funds
• Declaration confirming compliance with FEMA rules.

Outward Remittance from an FCNR Deposits – Not a Transfer Account

FCNR accounts are fixed deposits held in foreign currency.

• FCNR deposits are not used like an NRE or NRO savings account
• Funds are repatriable on maturity or premature closure. These funds can be directly transferred to your foreign bank account.

Once the deposit is closed, the proceeds can be sent abroad as per applicable rules.

What are the Transfer Limits for Domestic Transfers?

The transfer limits for domestic transfers depends on your bank and the specific programme you are enrolled under. Kotak permits customers to transfer up to ₹20 lakh per day through RTGS, IMPS, or NEFT. They can also increase their transfer limits through mobile banking, net banking, or simply visiting a branch.

Conclusion

While NRE transfers have no limits, NRO accounts do. If you plan to use income earned in India for overseas purposes, it’s important to plan accordingly. Current income can be transferred freely after-tax compliance, while capital income is subject to the USD 1 million yearly limit. Having the right documentation ready helps avoid delays.

At Kotak Mahindra Bank, we guide you in managing your NRE and NRO accounts smoothly. Contact us for help with your international transfers.