The Reserve Bank has now allowed non resident Indians (NRIs) to transfer funds from non-resident ordinary (NRO) account to Non-Resident External (NRE) account a/c. ( May 2012)
The maximum limit is $1 million in a financial year.
As per the existing regulation, funds transfer from NRE account to NRO was allowed, but not from NRO to NRE. Funds transfer from NRO account to Bank Account abroad was allowed. See my post – How to transfer funds from your NRO Account
This new RBI notification allows to transfer funds from your NRO Account to NRE Account.
Ref – RBI/2011-12/536 A. P. (DIR Series) Circular No.117 dates 7 May 2012
Procedures for transferring funds from NRO Account to NRE Account
A separate procedure is not mentioned for transferring funds from NRO to NRE, so the general procedure for transfer NRO funds will be applicable.
Challenges : In case you want to transfer funds from your NRO account to your NRE Account, you might find that some of the information required in Form 15CA & 15CB doesn’t make sense. For e.g in such case, the remitter & beneficiary will be same.
However, those will be relevant in case you transfer funds from your NRO account to someone else’s NRE Account.