Can I Repatriate Money From an NRE or NRO Account?

If you're thinking about transferring NRO money to NRE first, be careful about assuming that this automatically removes the repatriation restrictions.

RBI allows funds to be transferred from NRO to NRE within the USD 1 million facility, subject to the applicable conditions.

So the source of the money matters. I would keep documents showing where the funds came from and check with the authorised dealer bank before making a large transfer.

The basic distinction is fairly straightforward.

NRE funds are generally repatriable, meaning the balance can be remitted outside India, subject to the applicable banking and FEMA requirements.

NRO funds have restricted repatriation. RBI currently states that NRIs/PIOs can remit eligible NRO balances up to USD 1 million per financial year (April–March), subject to the prescribed conditions.

So you shouldn't treat an NRO account the same way as an NRE account when planning to move money abroad.

One important point is that the USD 1 million NRO facility isn't simply a "USD 1 million per account" allowance.

RBI describes it as up to USD 1 million per financial year, along with other eligible assets, subject to the applicable conditions. Documentation and tax compliance can therefore become important, particularly where the money comes from property sales, investments, inheritance or other assets.

Current income has a separate treatment. RBI's NRO guidance permits remittance of current income abroad, subject to applicable tax requirements.