Why Should NRIs Consider Sending Funds to Their Family in India Through an NRE Account?

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While there are now plenty of ways for NRIs to transfer funds to Indian recipients, an NRE bank account continues to be the most popular option. Read this post to know some of the top benefits of using an NRE bank account for international remittance.

Most Indians who move to foreign countries searching for professional opportunities generally have their families back in India. Once they start earning, they regularly send funds to their home to help their families with their expenses. While there are now plenty of methods to remit funds to India, transfers through an NRE bank account are still the most popular option.

If you’re an NRI wanting to send funds to your family in India, here are some of the top reasons why you should consider an NRE bank account-

  1. Multiple Transfer Methods

There are many different ways to send funds to your NRE bank account from a foreign country. For instance, you can use the net banking facility of your foreign bank account to complete the transfer. Some of the top Indian banks also offer economical money transfer services.

Once the funds are deposited into your NRE bank account, the mandate holder can then access the funds. The mandate holder can be any of your close family members.

  1. No Limit on Transfer Amount

As per the FEMA laws, there are no limits on the total amount an NRI can send to his/her NRE bank account. With most other methods, there are generally limits on the transfer amount. But with an NRE bank account, as long as you’ve earned the income legally in a foreign country, you can send any amount.

But note that in case of large transfers, you might have to provide proof of your income. Apart from this, you don’t need to worry about any restrictions.

  1. Earn Interest Income

An NRE savings account is also a secure way to earn additional income on your savings. Just like regular savings accounts for Indian residents, NRE accounts generate interest on the maintained balance.

Depending on the interest rate offered by your bank and the balance you maintain, your interest income will be deposited into your NRE bank account every month.

  1. Tax Benefits

Another significant reason to consider an NRE account to send funds to India is the tax benefit. According to the IT laws in India, NRE accounts are tax-free. This means that you’ll not be required to pay any tax on the interest income generated from an NRE bank account.

Moreover, the account is fully and freely repatriable. If required, you can transfer the entire deposit amount and the interest income of an NRE bank account to your current country of residence without paying any taxes or charges.

Opening an NRE Savings Bank Account in India

An NRE bank account is one of the best ways to transfer your foreign earnings to India. It ensures that your family members can conveniently and securely access the funds as and when required. Apart from this, it also offers complete flexibility and the opportunity for NRIs to earn tax-free interest income.

Look for a trusted bank that provides a wide range of NRI banking products and services to open your NRE bank account and experience these great benefits.

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