Remittance of Assets Under FEMA
NRO balances, sale proceeds and inheritances leave India through one route, capped at USD 1 million a year.
'Remittance of assets' is FEMA's term for sending abroad money that represents something held in India: a bank deposit, a provident fund or superannuation balance, an insurance claim or maturity amount, or the sale proceeds of shares, securities, immovable property or any other asset held in line with FEMA.
It is the main exit route for rupee wealth owned by non-residents, and the CCFE paper tests three things about it: who may use it, the annual ceiling, and the conditions the AD bank must check.
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Who Can Remit, and How Much
NRI or PIO
What they can remit
Balances in NRO accounts, sale proceeds of assets, assets acquired by inheritance or legacy, and assets acquired under a deed of settlement from parents or relatives; since June 2026 this includes transfers to the holder's NRE or SNRR account
Limit
USD 1 million per financial year
Foreign national of non-Indian origin who has retired from employment in India
What they can remit
Assets held in India
Limit
USD 1 million per financial year
Foreign national of non-Indian origin who inherited from a person resident in India
What they can remit
Inherited assets
Limit
USD 1 million per financial year
Non-resident widow or widower of an Indian national resident in India
What they can remit
Assets inherited from the deceased spouse
Limit
USD 1 million per financial year
Foreign student who has completed studies in India
What they can remit
Bank balance representing remittances received from abroad
Limit
Per the Master Direction's conditions
| Remitter | What they can remit | Limit |
|---|---|---|
| NRI or PIO | Balances in NRO accounts, sale proceeds of assets, assets acquired by inheritance or legacy, and assets acquired under a deed of settlement from parents or relatives; since June 2026 this includes transfers to the holder's NRE or SNRR account | USD 1 million per financial year |
| Foreign national of non-Indian origin who has retired from employment in India | Assets held in India | USD 1 million per financial year |
| Foreign national of non-Indian origin who inherited from a person resident in India | Inherited assets | USD 1 million per financial year |
| Non-resident widow or widower of an Indian national resident in India | Assets inherited from the deceased spouse | USD 1 million per financial year |
| Foreign student who has completed studies in India | Bank balance representing remittances received from abroad | Per the Master Direction's conditions |
Conditions the AD Bank Checks
- Tax
- Every remittance is subject to payment of applicable taxes in India. RBI states it will not issue FEMA instructions clarifying tax issues, so the bank follows income-tax law on certification.
- Undertaking for NRO balances
- Where the money comes from an NRO account, the bank takes an undertaking that the funds are the remitter's own legitimate receivables and not borrowed or transferred from another NRO account.
- Evidence of the asset
- For inherited or legacy assets, the bank needs documentary evidence of the inheritance or acquisition.
- One AD for instalments
- If the remittance is made in more than one instalment, every instalment must go through the same AD bank.
- Above USD 1 million
- Needs RBI's prior approval, as does a remittance sought on grounds of hardship.
Sale Proceeds of Property
Immovable property has its own repatriation rule on top of the USD 1 million route. An NRI or OCI selling property in India (other than agricultural land, plantation property or a farm house) can repatriate the sale proceeds if the property was acquired in line with the foreign exchange law in force at the time and the purchase was paid for in foreign exchange through banking channels, or from NRE or FCNR(B) funds.
The amount repatriated on this basis cannot exceed what was paid for the property in foreign exchange, and for residential property it is limited to two properties. Proceeds of property bought from rupee funds are not lost: they go to the NRO account and leave through the USD 1 million route.
USD 1 million route and eligibility. No signup.
Who Is Left Out
The facilities for foreign nationals of non-Indian origin do not extend to citizens of Nepal or Bhutan. Separately, FEMA's PIO definition excludes citizens of Pakistan and Bangladesh, so a citizen of those countries does not get the PIO route. Options in the exam often mix these two lists.
How CCFE Tests This
Expect the USD 1 million figure in every form: as an NRO repatriation limit, an inheritance limit, a retired foreign employee's limit. The trap options are USD 250,000 (the LRS figure for residents) and 'calendar year'. The limit is per financial year, it is net of tax, and it is the same USD 1 million pool whichever source the money comes from.
FAQs
How much can an NRI repatriate from an NRO account?expand_more
Up to USD 1 million per financial year, covering NRO balances, sale proceeds of assets and inherited assets together, subject to payment of applicable taxes.
Can a foreign national remit inherited property proceeds from India?expand_more
Yes. A foreign national of non-Indian origin who inherited from a person resident in India can remit up to USD 1 million per financial year, with documentary evidence of the inheritance.
Can an NRI repatriate the sale proceeds of a flat in India?expand_more
Yes, if it was bought in foreign exchange through banking channels or from NRE or FCNR(B) funds, up to the amount paid in foreign exchange, for at most two residential properties. Otherwise the proceeds go to NRO and use the USD 1 million route.
What happens above USD 1 million?expand_more
A remittance above USD 1 million in a financial year needs RBI's prior approval.
Next steps
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