Bank Accounts, Remittances and Repatriation in India

Money that moves between India and the rest of the world has to run through a regulated channel: an authorised bank, a licensed payment system and the forms that go with them, not an informal transfer. For a foreign company this means the corporate account you open after incorporation, the certificate your bank can issue when investment money lands, and the paperwork it asks for each time profit, royalty or capital goes back out. For an NRI it means choosing the right account for money earned in India versus money brought in from abroad, and knowing which one can be freely sent home.

This hub is about the mechanics of that movement, not the underlying permission to invest. FEMA reporting for share allotments, transfers and overseas investment lives in the FEMA and RBI hub; residency-based investment caps and inheritance sit in the NRI hub. Here we cover the bank account itself, the Authorised Dealer bank that processes the transaction, the certificate that proves an inward remittance happened, and what changes hands when money leaves as a dividend, a royalty, a fee or a repayment.

None of this moves instantly. Banks run their own know-your-customer checks under RBI rules, tax is usually worked out and withheld before an outward payment clears, and a mismatch between what the bank expects and what you can show is a common reason a transfer stalls. The guides below get you oriented; where the work needs a professional, we route you to one.

Start here

Bank Account Opening Guide for Foreign Companies in India
Walks through what a foreign-owned company needs to open a current account and why it runs longer than for a domestic company.
FIRC (Foreign Inward Remittance Certificate)
Defines the certificate a bank issues for every inward remittance, the document that later RBI and tax filings depend on.
AD Bank Full Form and Role in Foreign Remittances from India
Explains the Authorised Dealer bank every remittance must pass through, and why your choice of bank matters.
NRE Account vs NRO Account in India
Lays out exactly how NRE and NRO accounts differ on deposits, tax and repatriation before you open either.
Liberalised Remittance Scheme (LRS)
Defines the scheme resident Indians use to send money abroad, and why it does not apply to NRIs.
Repatriation Guide: How Foreign Investors Send Money Out of India
Covers how dividends, capital and royalties actually leave India, and the forms and bank checks each route needs.
Best Banks in India for Foreign Companies: Export Business
Compares banks on forex costs and FEMA support, useful once you know which account type you need.

Foreign investment that lands in your account sets off RBI reporting deadlines, for a share allotment as much as an ECB drawdown, and our FEMA compliance support files and tracks each one. Tax withheld at source often runs ahead of what a non-resident actually owes, especially on an NRI's property sale, and our lower TDS certificate service applies to the tax department for a lower or nil rate before the payment is made. Interest on an NRO account and rent from Indian property are both taxed at source before the money reaches you, and NRI return filing is how you claim back tax withheld above what you actually owe.

bank account opening

A foreign-owned company or LLP cannot receive its capital until it has an Indian current account, and opening one needs board resolutions, attested director documents and full beneficial-ownership disclosure. NRIs face a separate process, and an NRI who keeps an ordinary resident savings account after moving abroad needs it redesignated, not left as it is.

inward remittances and FIRC

Money arriving from outside India, whether it funds a company, repays a loan or pays for an export, should be backed by the receiving bank's record of what came in, from whom and why. That record is the paper trail later RBI filings and tax assessments rely on, so keep the stated purpose true to the real transaction.

FIRC (Foreign Inward Remittance Certificate)

dividend repatriation

A dividend earned by a foreign shareholder or an NRI can be sent abroad once the company has withheld tax and the bank has done its checks. The domestic rate applies unless the shareholder qualifies for and documents a lower treaty rate, so get that paperwork in before payment or expect to claim a refund later.

outward remittance and LRS

The Liberalised Remittance Scheme lets a resident individual send money abroad for permitted purposes such as investment, education, travel or family support, but it is for residents only, not NRIs or companies. Companies repatriate investment proceeds and NRIs use their NRE or NRO account rules, so ask your bank for the right facility.

NRE NRO and FCNR accounts

NRIs typically need more than one account: one for money earned abroad and brought in, which stays freely repatriable with interest untaxed in India, and one for money earned in India, taxed locally with narrower repatriation. A foreign-currency deposit adds a third option for holding funds without converting to rupees. India-earned income cannot go into the first kind.

cross-border payments

Payments crossing the border, in either direction, are handled by a bank the RBI has authorised to deal in foreign exchange, and that bank checks the purpose, the paperwork and often the tax position before moving the money. For a foreign company this bank is a compliance checkpoint, not just a processor, so pick one with real foreign-company experience.

payment systems and UPI

India's domestic payment rails, especially UPI, move rupees between Indian bank accounts. Once a foreign company's India entity has its own account, it can use them for local collections and payouts. Some cross-border links to UPI exist for personal remittances, but they do not replace the authorised bank channel for investment, dividend or fee flows.

Payment Systems in India: RTGS, NEFT, UPI & SWIFT

currency and FX risk

Money moving between India and another country is exposed to exchange-rate movement between agreement and settlement, and Indian banks vary widely in the spread charged on conversion. A company with regular receipts or payments benefits from comparing banks on forex pricing and considering a hedge, rather than accepting whatever rate the bank quotes that day.

royalty and fee remittance

Royalties and fees for technical services paid to a foreign group company carry their own withholding question: the domestic rate applies unless the recipient qualifies for, and documents, a lower rate under the relevant tax treaty. The Indian payer, not the foreign recipient, is responsible for getting the withholding and reporting right before the money leaves.

Royalty Payments from India: FEMA, Tax & Transfer Pricing Rules

KYC and AML

Banks in India apply the RBI's know-your-customer and anti-money-laundering rules through their own risk policies, and foreign ownership, layered holding structures and third-country remitters all raise the scrutiny applied. Having beneficial-ownership documentation ready before you approach the bank reduces the risk of the delays and account freezes this scrutiny can cause.

escrow and holding accounts

An escrow account lets money sit with a neutral third party, typically a bank, until an agreed condition is met, which suits a foreign buyer and an Indian seller who do not yet trust each other, or a deal where proceeds must be held pending approval. Setting one up needs a written agreement spelling out exactly when funds are released.

fintech and payment licences

A business that moves money for other people, rather than only for itself, such as a payment aggregator or a wallet, needs its own RBI authorisation, separate from the ordinary banking relationship any company needs. A foreign investor in an Indian fintech should treat licence conditions as part of due diligence, not paperwork to tidy up after the deal.

Frequently Asked Questions

Can an NRI use the Liberalised Remittance Scheme to send money out of India?

No. The scheme is open only to resident individuals, so NRIs repatriate money under the rules attached to their NRE or NRO accounts instead.

What is the real difference between an NRE and an NRO account?

An NRE account holds foreign income brought into India and stays freely repatriable with no Indian tax on the interest; an NRO account holds India-sourced income, which is taxed here and can only be repatriated within narrower rules.

What actually proves that an inward remittance into an Indian bank account happened?

The receiving bank can issue a Foreign Inward Remittance Certificate recording the amount, the sender and the stated purpose, and that record is what later RBI and tax filings rely on.

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