An NRE (Non-Resident External) account is a rupee-denominated bank account for NRIs to deposit foreign-sourced income. Only Indian citizens residing abroad with a valid NRI status can open one. The account allows 100% repatriation of funds and currently earns tax-free interest in India.

Yes, you can send USD to an NRE account in India from the USA, provided your U.S. bank or remittance service supports NRE routing. As of early 2026, Root does not yet support NRE accounts but fully supports NRO and regular INR accounts. Check with your provider before initiating the transfer.

There is no per-transaction or annual limit on funds transferred into an NRE account from abroad. However, Indian banks may require PAN verification for deposits over ₹500,000 in a single transaction for tax compliance. Always provide correct IFSC code to avoid delays.

No, remittances to an NRE account do not count against the Liberalised Remittance Scheme (LRS) limit of USD 250,000 per financial year because the LRS applies to Indian residents—not NRIs sending from abroad. NRE deposits are considered foreign-sourced income and are outside LRS purview.

TCS (Tax Collected at Source) at 5% applies to LRS-based remittances exceeding ₹7,00,000 in a financial year. Since NRE account deposits are not made under LRS, but rather as external foreign inflows, they are exempt from TCS as of April 2024, provided the funds are from genuine overseas income.

Transfers to NRE accounts typically take 1–3 business days when sent via international wire from the U.S., depending on intermediary banks and whether all details (IFSC, account number) are accurate. Delays may occur if the recipient bank requests additional documentation.

Use an NRE account for foreign-sourced income like U.S. salary or business proceeds, as it offers tax-free interest and full repatriability. Use an NRO account for India-sourced income like rent or dividends. As of 2025, Root supports NRO accounts but not NRE—plan accordingly.