The short answer. Money in an NRE account leaves India freely. Money in an NRO account is capped at USD 1 million per financial year, across all your NRO accounts together, and only after the tax on the underlying income has been paid and certified. Above that, you need the Reserve Bank's prior approval.
The two routes
From NRE: no annual cap, no approval, no certification of tax on the balance itself. This is the reason the choice of account matters at the moment you invest rather than at the moment you want the money.
From NRO: capped, certified, and tracked against your PAN for the financial year running April to March. The cap covers everything together — rent, dividends, sale proceeds, pension, transfers to your own NRE account.
The sequence
- Establish what the money is. Sale proceeds, rental income and inherited assets each carry their own documentation.
- Settle the tax. Nothing moves until the tax on the underlying income is paid.
- Get the certification. A chartered accountant certifies the position; historically Forms 15CA and 15CB, renamed Form 145 and Form 146 from 1 April 2026 under the Income Tax Act 2025. Confirm the current forms with your CA.
- Instruct the bank. The authorised dealer bank processes it against the annual limit.
- Keep the record. The limit is annual and aggregate; you need to know what you have already used.
Where it stalls
Documentation on inherited assets. Establishing the chain of title and the cost of acquisition for something inherited decades ago takes longer than people allow for — often months, not days.
Discovering the cap late. An investor who sells a property and expects the whole amount out in one go meets the USD 1 million limit at the worst possible moment.
Assuming the limit is per account. It is per person, per financial year, across all NRO accounts.
What this means for how you invest
If you expect to bring investment proceeds home, fund the investment from NRE money and keep it identifiable. If the money is already NRO — because it came from Indian income — then plan the exit against the annual limit rather than against your own timetable.
This is one of the questions worth settling before you choose a vehicle at all, alongside how the gains will be taxed and whether a managed portfolio is open to you.
Before you act on any of this
This is general information about how the rules work, not investment, tax or legal advice, and not a recommendation to buy or sell anything. Your position depends on your residential status, your country of residence and your own circumstances, and the rules change. Take advice from a qualified professional in both countries before you act. Nothing here is an offer, and Redberyl Investment Managers LLP gives no assurance of any return.
Sources
- Reserve Bank of India — FEMA and NRI accounts — checked 29 September 2026
- Income Tax Department — Capital Gains — checked 29 September 2026
More in this series: NRE and NRO accounts · how the tax works · taking money out · PMS and non-residents