NRI Transfer Limits: What You Can Send Abroad and How to Stay Compliant

When you're an NRI, a Non-Resident Indian who earns income outside India but maintains financial ties at home. Also known as Non-Resident Indian, it means you can send money back to India—or out of it—but there are strict rules. The Reserve Bank of India and FEMA govern how much you can transfer, which accounts you can use, and what paperwork you need. Get this wrong, and you risk penalties, frozen funds, or even tax trouble.

Most NRIs use NRE accounts, a type of bank account in India designed for foreign earnings, where funds are fully repatriable. Also known as Non-Resident External account, it to move money abroad without limits. But if you’re using an NRO account, a savings or current account for income earned in India, like rent or interest. Also known as Non-Resident Ordinary account, it, you’re capped at $1 million per year per person after paying taxes. That’s not a suggestion—it’s the law. And if you’re sending money for gifts, education, or medical emergencies, you still need to prove the purpose. Banks ask for documents like admission letters, medical bills, or gift deeds. Skip this, and your transfer gets stuck.

Many NRIs don’t realize that transferring money through informal channels—like hawala or unlicensed agents—is illegal, even if it feels faster. The RBI tracks cross-border flows closely. If you’re sending large sums regularly, your bank will flag it. Better to use official routes: SWIFT transfers through NRE/NRO accounts, or platforms like Wise or PayPal that comply with Indian regulations. Also, remember: you can’t send money to buy property abroad unless it’s for your own residential use, and even then, you need to file Form A2.

And here’s something most guides miss: your tax status in India affects your transfer limits. If you stay in India more than 182 days in a year, you’re no longer an NRI—you become a resident, and your rules change completely. That’s why tracking your days matters as much as tracking your balance. You can’t just assume you’re still an NRI because your passport says so.

Below, you’ll find real-world breakdowns of how NRIs actually handle transfers, what mistakes cost them, and how to use the right accounts to move money safely and legally. No theory. No fluff. Just what works.