What is the difference between an NRE and NRO account?

An NRE (Non-Resident External) account holds money you earn abroad and is fully repatriable — you can send the principal and gains back overseas freely. An NRO (Non-Resident Ordinary) account holds income earned in India, and repatriation from it is capped at USD 1 million per financial year.

Which account should an NRI use to invest in stocks?

Use an NRE-linked account if you want your investment and its proceeds to be fully repatriable. Use an NRO-linked account if you are investing money already earned in India or are happy with the USD 1 million yearly repatriation limit.

How much can an NRI repatriate from an NRO account?

Up to USD 1 million per financial year, net of applicable Indian taxes, covering sale proceeds, dividends and other permissible income held in the NRO account.

What forms are needed to repatriate money from India?

Repatriation from an NRO account generally requires Form 15CA (a self-declaration) and, in many cases, Form 15CB (a chartered accountant's certificate) confirming taxes have been paid.

For NRIs

NRE vs NRO & repatriating your money

The account you invest from decides whether you can send your money back abroad. Here is how NRE and NRO accounts differ, the USD 1 million limit, and the process to repatriate.

Written & maintained by Ankit Sharma, Founder, HiddenHire.

For most NRIs the real question is not just “can I invest?” but “can I get my money back out?”. The answer depends entirely on which bank account you invest from. This page is part of our guide to investing in Indian stocks as an NRI.

NRE vs NRO at a glance

NRE (Non-Resident External). Funded with money you earn abroad, held in rupees. Both the principal and any gains are fully and freely repatriable — you can send them back overseas without a ceiling. Investments made on a repatriable basis use this route.
NRO (Non-Resident Ordinary). Holds income earned in India — rent, dividends, proceeds from assets you owned before moving abroad. Repatriation is allowed but capped at USD 1 million per financial year.

Which one to invest from

If keeping your money mobile matters — you may want to bring it back to your country of residence later — invest on a repatriable basis through your NRE account. If you are putting money that is already in India to work, or the USD 1 million annual limit is more than enough for you, an NRO-linked, non-repatriable route is simpler. Many NRIs run both.

The USD 1 million NRO limit

You can repatriate up to USD 1 million per financial year from your NRO account. Key points:

The limit is net of Indian taxes — tax must be settled first.
It covers sale proceeds, dividends and other eligible balances together, not each separately.
It resets each financial year (April–March).

How the repatriation process works

Settle the tax. Ensure TDS and any balance tax on your gains and dividends is paid (see our NRI taxation guide).
Complete the forms. Repatriation from an NRO account generally needs Form 15CA (your declaration) and often Form 15CB (a chartered accountant's certificate that taxes are paid).
Instruct your bank. The bank, as your authorised dealer, processes the outward remittance within the annual limit.

Important

StocksWizard is an informational and educational tool, not a financial, tax or legal adviser, and this page is general information only. FEMA rules, limits and forms change, and the right approach depends on your circumstances and country of residence. Confirm the current process with your bank and a qualified chartered accountant, and read our full disclaimer before acting.