Can you deposit Indian rupees to NRE account? Is it allowed?

No, you cannot deposit Indian rupees into an NRE account. The only way to fund an NRE account is via foreign currency remittance, foreign currency deposit when you visit India, or via foreign currency traveler's cheque. Since the NRE saving account is at par with the FCNR deposit, this is the restriction they have imposed. This also means that you cannot ask your friends, relatives, and parents to transfer money to your NRE account. I think the only way to transfer Indian rupees into an NRE account is by transferring money from your NRO account. 

Since NRO also allows you to transfer your Indian rupee income to remit abroad, or to FCNR and NRE, this is the only way I can think it's possible, subject to paperwork and a limit of 1M USD per calendar year. See this guide to learn how to deposit money in an NRE account.

On a related note, if you are in need of a bank saving account where any resident Indian can transfer Indian rupees then go for an NRO account. NRO stands for Non Resident Ordinary account, which means anyone can transfer Indian rupees into this account. 

Many Indians who have properties in India, use an NRO account to collect rents from tenants via online rupee transfer or netbanking because its not allowed for them to collect rentals or any income from India into NRE accounts. 

You can also use an NRO account to collect dividends paid by your Stock investments. If you are not really sure about the difference between NRE and NRO accounts then you must check the article because they are for a different purpose.

Other frequently asked questions

1. Can you deposit foreign currency cheques to NRE Account?

Yes, that's perfectly allowed and that's also the most popular way to fund your NRE account.

2. Can you deposit travelers' cheques into your NRE Account?

Yes, that's also allowed if traveler's cheque is in acceptable foreign currency like US Dollars or SGD, or Pound, etc.

3. Can you deposit cash in foreign currency?

Yes, that's also fine but there is always a limit to how much cash you can carry to India in the first place. So, this is fine for depositing a small account. 

In short, You cannot deposit Indian rupees into an NRE account. You can only deposit foreign currency cheques and remittances into your NRE account. This is actually one of the main differences between an NRE and an NRO account. If you need a bank account where you can deposit Indian rupees, just open an NRO account, which is similar to a resident saving account.

In fact, if you already had a saving account before then just inform your bank about your non-resident status and they will happily convert your resident saving account to an NRO account.

Other NRI Income tax articles you may like

• 3 Income tax benefits of opening NRI accounts in India 
• Is NRIs overseas income taxable in India
• How much TDS is deducted from the NRO account?
• Is it mandatory to file income tax returns for NRIs?
• 13 ways to save income tax in India
• 10 Income tax deductions and exemptions NRIs should know
• How NRIs can file their income tax returns online
• Is it mandatory for NRIs to declare foreign bank accounts on tax returns?
• How to determine the tax residential status of NRIs?
• 10 points NRIs should know about Income tax?
• Is Aadhaar card Mandatory for filing an Income tax return for NRIs?

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