NRE, NRO and FCNR accounts: structure, repatriation and US reporting

This guide covers how the three main NRI account types are built, what money can be sent out of India, and what changes when you become a US tax resident or move back. For interest tax basics, see NRE, NRO and FCNR interest. The account rules below come from the RBI FAQ on accounts by non-residents (as on 16 January 2025). Rules can change, so confirm with your bank.

The three account types

NRE and FCNR(B) are for NRIs and PIOs (a PIO includes an OCI cardholder). An NRO account can be opened by any person resident outside India for bona fide rupee transactions.

Being a US tax resident does not itself change your account type. Your account status follows your FEMA residence, which is a separate test from US tax residence and from Indian tax residence. Do not close or redesignate accounts only because you passed the substantial presence test or got a green card. Ask your Indian CA how FEMA status applies to you.

What you can send abroad

Per the RBI FAQ, NRE and FCNR(B) balances are repatriable. NRO current income (rent, dividends, pension, interest) can be remitted after Indian tax. Other NRO balances can be remitted by NRIs and PIOs up to USD 1 million per financial year (April to March), together with other eligible assets, under the Remittance of Assets Regulations 2016. Transfer from NRO to NRE is allowed within the same limit. The FAQ does not say how a bank totals this across accounts. BharatTax says it is counted per PAN across all NRO accounts.

Forms for remittances

From 1 April 2026 the Income-tax Rules, 2026 apply. Sources we read state that old Form 15CA is now Form 145 and Form 15CB is now Form 146 (Rule 220), for remittances made on or after that date. Part A covers taxable remittances up to Rs 5 lakh in total for the year. Above that, you need an Assessing Officer certificate or a CA certificate in Form 146. Some remittances are exempt, and banks may ask for their own papers. We could not open the official pages ourselves, so confirm with your bank and CA which form your transfer needs.

India's tax versus US tax

India's treatment differs by account.

• NRO interest is taxable in India, with TDS at 30% plus surcharge and cess unless a treaty rate is claimed with a tax residency certificate and Form 10F.
• NRE and FCNR(B) interest is exempt in India only while you meet the conditions. For NRE, the exemption depends on you being a person resident outside India under FEMA, and it ends when you stop being one. These conditions come from the Income-tax Act, 1961 (sections 10(4)(ii) and 10(15)(iv)). The Income-tax Act, 2025 now applies from 1 April 2026, so ask your CA for the new references.
• The US taxes all of it. Exempt in India does not mean exempt in the US.

Joint accounts, signing authority and US reports

RBI rules allow joint NRE and FCNR(B) accounts between NRIs and PIOs. NRO accounts can be held jointly with a resident on a "former or survivor" basis. A resident relative can also hold power of attorney, but only for limited withdrawals such as local payments.

For US reports:

• FBAR: you report a foreign account if the combined balance of all your foreign accounts exceeded $10,000 at any time in the year. This covers accounts where you have signature or other authority, even with no ownership. The IRS also says joint owners each report the account. Spouses can use a joint-filing exception on Form 114a. That exception does not cover a parent.
• Form 8938: a non-spouse joint owner includes the entire value of the asset. Signature authority alone generally does not count, unless you otherwise have an interest in the account. Thresholds for a US-resident taxpayer are $50,000 at year end or $75,000 at any time if unmarried, and $100,000 or $150,000 if married filing jointly (instructions revised November 2021).

Practical result: a parent's joint account with you is yours to report in full. A parent's solo account where you can sign for bill payments may trigger an FBAR, even if the money is theirs. A parent with power of attorney over your account is not a US person, so that parent has no US filing, but you still do. See FBAR and Form 8938 for Indian accounts.

When you move back to India

The RBI FAQ says on return for employment or a change in residential status:

• NRE: redesignate as a resident account, or transfer the funds to a Resident Foreign Currency (RFC) account, at your option.
• FCNR(B): may continue to maturity at the contracted rate, then convert to a resident rupee deposit or RFC account.
• NRO: may be redesignated as a resident account.

On tax, the NRE exemption ends when you stop being non-resident under FEMA. Many sources say FCNR and RFC interest stays exempt in India during RNOR years, but they disagree on whether NRE interest can, so plan on it becoming taxable from the return date until your CA confirms. US reporting continues for as long as you remain a US citizen, green card holder or resident. See moving back to India and gifts and inheritance from India if a parent's money is involved.

A US CPA should be involved when you hold joint accounts with relatives, have signing authority over a parent's account, or are planning transfers while you are a US taxpayer. They work out FBAR, Form 8938 and gift reporting, and coordinate with your Indian CA on the India side.