13B.19
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Transfer of Funds from One Account to Another
(i) Transfer of NRE accounts from one branch of authorised dealer to another branch of same authorised dealer may be freely made. Occasionally, NRE account holders may wish to transfer funds from accounts held with one authorised dealer to another authorised dealer at the same centre or at another centre for opening new NRE accounts or for funding NRE accounts. Authorised dealers may open (or credit) NRE accounts with funds transferred from other authorised dealers in this manner provided :
(a) account is opened (or held) in the name of the same account holder/s;
(b) a certificate, issued by the authorised dealer transferring funds confirming the Non-Resident (External) status of the account from which transfer is being made, is produced along with the relative pay order or draft.
(ii) Authorised dealers may allow transfer of funds between NRE accounts of different persons held with themselves or different authorised dealers for any purpose. Where the transfer of funds is by way of gift, it may be allowed after obtaining an undertaking from the transferee/transferees banks that gift tax, if any, payable on the transfer of funds will be paid to the Income-tax authorities in India. In case of transfer of funds between NRE accounts held with different authorised dealers, the authorised dealer transferring the funds should issue a certificate confirming the non-resident status of the transferor