NRIs are not allowed to operate an ordinary bank account in India, but can open a non-resident external (NRE) rupee account, foreign currency non-resident account (FCNR) (banks), non-resident ordinary (NRO) rupee account or a special non-resident rupee account. Typically, most NRIs have NRE and NRO accounts.

In an NRE account, NRIs can keep remittances from outside India, income from investments made in India and current income. Funds in this are freely repatriable.

The NRO account can be used to carry out transactions in Indian currency. The account can be credited with inward remittances from outside India, and gift or loan received from a relative (resident Indian), subject to the limit prescribed under RBI’s Liberalized Remittance Scheme (LRS). Only current income such as rent, pension and interest can be remitted from an NRO account outside India; the balance may also be repatriated abroad or to an NRE account but only up to $1 million in a financial year.

Pay all your tax dues before remitting money outside India.

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