Changes in Indian banking regulations from April 2026 introduce stricter documentation and certification requirements for NRIs moving funds from NRO accounts abroad, adding hurdles to an already complex process.
For many overseas Indians, the real test begins after the money reaches India. Taking funds out again depends less on the bank balance than on the account that holds it. According to Kuvera’s guide, money parked in a Non-Resident External account can usually be sent abroad without a yearly ceiling, while funds in a Non-Resident Ordinary account face tighter controls, a filing trail and, in some cases, a hard annual cap.
The distinction starts with the source of the money. An NRE account is designed for income earned abroad and remitted into India, which is why principal and interest can be transferred overseas freely. The interest is also tax-free in India for as long as the account holder remains a non-resident under FEMA rules, and no repatriation-specific tax certificates are required for that transfer. By contrast, an NRO account is meant for money earned in India, such as rent, dividends, pension income, interest and proceeds from asset sales.
That difference matters most when the funds are capital proceeds. Current income from an NRO account can be moved abroad after taxes have been paid, but sale proceeds from property, mutual funds, shares, fixed deposits and inherited assets fall under the USD 1 million limit per financial year. Industry guidance from NRI-focused sites says that limit applies across all NRO accounts held by the same person and resets every 1 April. If an NRI needs to move more than that, prior Reserve Bank of India approval is needed and is usually reserved for exceptional cases.
The paperwork has also become more formal. Kuvera says that from April 2026, Form 145 and Form 146 replaced the older Form 15CA and Form 15CB process for NRO repatriation. In practice, that means a chartered accountant must certify the transaction after an income tax return has been filed for the relevant year. Without a filed return, most accountants will not issue the certificate, which can stop the remittance before it starts.
Banks also want a clear audit trail showing where the money came from. For property sale proceeds, that typically means the sale deed, purchase deed and property declaration. Rental income generally needs the lease or rent receipts, while dividends or interest require investment or account statements. Inherited money must be backed by documents proving succession. One additional rule can catch people out: the repatriation must be routed through a single authorised dealer bank each financial year so the USD 1 million ceiling can be monitored properly.
For NRIs with portfolios in India, the practical lesson is straightforward. Funds invested through an NRE account usually offer the cleanest exit route, because they are freely repatriable and lightly documented. Money sourced through an NRO account is still movable, but only after tax compliance, accountant certification and bank verification are complete. According to Kuvera’s step-by-step outline, banks generally complete the transfer within seven to 10 business days once all documents are in hand.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
