What changed
Previously, AD Category-I banks reported NRO remittance data (including property sale proceeds up to USD 1 million per financial year) on a quarterly basis within 10 days of the quarter end. Effective February 18, 2014, RBI mandates monthly reporting within 7 days of the month end to get more real-time data. The reporting proforma now includes a separate column for 'Transfers from NRO to NRE account'.
What it means for you
Banks must tighten their internal data collection and reporting processes to meet the shorter monthly deadline. The inclusion of NRO-to-NRE transfers in the proforma means banks need to track and report these flows separately, increasing compliance granularity. This change gives RBI faster visibility into NRO outflows, which may lead to closer scrutiny of large or frequent remittances.
What you must do
- Update your internal reporting system to generate the monthly NRO remittance statement within 7 days of each month-end.
- Ensure the revised proforma captures all three categories: sale proceeds of immovable property, other assets, and transfers from NRO to NRE accounts.
- Train staff handling NRO accounts to correctly classify and record NRO-to-NRE transfers for reporting.
- Submit the monthly statement via email to the RBI's Foreign Investments Division (NRFAD) at Central Office, Mumbai.
Who it affects
AD Category-I banks handling NRO accounts, NRI/PIO customers with NRO accounts, Foreign nationals with NRO accounts, RBI's Foreign Exchange Department (NRFAD)
What is the new reporting frequency for NRO remittances?
Monthly instead of quarterly. Banks must submit the statement within 7 days of the end of each reporting month.
What new data element is added to the reporting proforma?
A separate column for 'Transfers from NRO to NRE account' has been added, in addition to sale proceeds of immovable property and other assets.
Does this circular change the USD 1 million per financial year limit for NRO remittances?
No, the limit remains unchanged at USD one million per financial year (April-March) for remittances out of NRO balances, including sale proceeds of immovable property.