Is the redemption amount repatriable from NRO account

My son is an NRI and has NRE and NRO accounts. He has invested in Mutual Funds through his NRO a/c. Can he redeem these investments and repatriate them. Should the funds be transferred to the NRO a/c before transfer? If so, can you please advise on the formalities?

Apr 13, 2017 by Subramaniam, Nerul | Mutual Fund

No, the redemption proceeds received in NRO account can not be repatriated. NRO accounts are treated like ordinary savings bank account.

However, your may repatriate redemption proceeds received in NRE account as these accounts can receive and send foreign remittances.

Please also note that you can not change the bank account type (i.e. NRO/ NRE) after you have made the investments. AMC will send the redemption proceeds only to the respective account type from where the investments were received. For example, redemption will be credited to NRE account if the investment has been made from there. Similarly, investments made from NRO account when redeemed will be credited to NRO account only.

Hope the above clarifies. Thanks for writing to us:)

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