How to transfer funds to India to your NRE account?

Maintaining a Rupee account in India has been a problem for many NRIs who wish to send money home. If you are also an NRI and you have been facing a similar challenge, then opening an NRE account can help. There are no restrictions as such on sending money to India. According to the FEMA (Foreign Exchange Management Act), there are no limits or restrictions on most remittances that NRIs send to India. But before you plan on getting an NRE account opened in India, let us first understand what it is all about.

NRE (Non-Resident External) Accounts

Any NRI can open an NRE account which is basically a savings account meant for repatriating funds that would come from outside earnings. Through this account, you can transfer your earnings to India in a convenient manner, without worrying about any security hassles. Irrespective of the foreign currency, when you send money to your NRE account, the currency will get converted into INR. This service has enabled NRIs to hold as well as maintain foreign currency earnings in Indian currency. It has also allowed them to repatriate funds, including the interest they earn on the money sent.

Repatriation is one of the key features of the NRE account. This means that money can be sent out of the country anytime and there is no upper limit as such. It is different from the NRO account that has clearly defined limits. The interest on NRE account money is completely tax free and there are different ways to fund the account. The most common way of funding this account is through foreign currency. You can initiate a remittance and transfer funds to India from your country to the NRE account. In case you are already in India and you have foreign currency available with you, it can be used for funding the account.

Just remember that depositing Indian currency in your NRE account isn’t possible. If you have foreign currency that is not freely convertible, then you first need to get it converted into a freely convertible currency and then get it deposited in the NRE account.

Factors to Consider when Remitting Money to India

There are several factors that you need to take into account when remitting money to India. For instance, you need to do some research in order to find best money to India exchange rates. Exchange rates can make your remittance expensive so try and compare the rates being offered by different banks and remittance agencies.

There are several websites with the help of which you can compare rates being offered by different agencies under one roof. This will help you make the right choice. Another factor is the transfer fee. Make sure you choose a remittance agency that is charging you low transfer fees or else there will be no point of getting competitive exchange rates. Keep these factors in mind if you want to send money to India safely.