NRE or NRO: Which Account Should Receive Money Sent From Australia?

NRE accounts: for money earned outside India

RBI's own comparison of non-resident account types describes an NRE (Non-Resident External) account as open to NRIs and PIOs, held in Indian rupees, with balances that are fully "Repatriable" — meaning the money can be sent back out of India again, in any currency, without further RBI approval. An NRE account is generally the right home for foreign income and foreign savings — like a transfer of Australian salary, savings, or the sale proceeds of an Australian asset — that the account holder might later want to move again, whether back to Australia or elsewhere.

NRO accounts: for India-linked income

An NRO (Non-Resident Ordinary) account, per the same RBI comparison, can be opened by "any person resident outside India for putting through bonafide transactions in rupees" and is typically used for income that originates in India — rent from an Indian property, dividends from Indian investments, or a pension paid in India. NRO balances are described by RBI as "Not repatriable except for all current income," though NRIs and PIOs can remit up to USD 1 million per financial year (April–March) out of an NRO account, combined with other eligible assets, under FEMA 13(R). A transfer from Australia can still be deposited into an NRO account — it just sits under this more limited repatriation rule rather than NRE's full repatriability.

FCNR(B): the third option, in foreign currency

RBI's comparison also lists a third account type, FCNR(B), open to the same NRIs and PIOs as NRE accounts but held in a permitted foreign currency rather than Indian rupees. This is a separate consideration from the AUD-to-INR conversion question that comes with a transfer from Australia landing in NRE or NRO, and is more relevant if the goal is to avoid converting the money into rupees at all for now.

Which account actually fits a transfer from Australia

This is general information, not personal financial advice — which account suits a specific transfer depends on whether the money is genuinely foreign-earned (pointing towards NRE) or has some connection to Indian-sourced income or an existing Indian financial commitment (pointing towards NRO), and on whether the recipient expects to need to remit it back out of India later. RBI's own FAQ, and the receiving bank, are the right places to confirm the correct account for a specific transfer rather than assuming either type suits every situation.

What the transfer itself needs, and what it costs

On the Australia side, the sender needs the recipient's Indian bank details, account number, and the bank's IFSC code, in the same way an Australian transfer needs a BSB and account number. Indian banks typically issue documentation for an inward remittance — sometimes referred to as a Foreign Inward Remittance Certificate or equivalent advice — which is worth requesting and keeping, since it helps substantiate the transfer's source and purpose later. Each Indian bank publishes its own fee schedule for receiving an international transfer into an NRE, NRO or FCNR(B) account; check the specific bank's own charges rather than assuming a flat fee applies across all of them.

Sending the transfer from the Australian end

For the practical mechanics of sending the money from Australia — methods, fees, and timing — see our guide on sending money from Australia to India, or on transferring money to Australia from India if the flow runs the other way. Our guide on the tax implications of transferring money from India to Australia also covers the RBI remittance limits that apply if money is later sent back out of India.

Should money from Australia go into an NRE or NRO account?

It depends on the nature of the money. Foreign-earned savings that might need to leave India again later generally suit NRE, which is fully repatriable. Money linked to Indian-sourced income, or where full repatriability isn't needed, can go into NRO, which allows remittance out up to USD 1 million per financial year.

Can I move money out of India again if it's in an NRO account?

Yes, but not without limit. RBI allows NRO account balances to be remitted abroad up to USD 1 million per financial year (combined with other eligible assets) under FEMA 13(R) — NRE balances, by contrast, are fully repatriable.

What details does someone in Australia need to send money to my Indian account?

Your Indian bank account number, the bank's IFSC code, and your name as it appears on the account — the Indian-side equivalent of the BSB and account number an Australian sender is used to providing.

Will my Indian bank charge a fee for receiving money from Australia?

Most Indian banks charge an inward-remittance fee, but the amount varies by bank and account type. Check your specific bank's published charges rather than assuming a flat rate applies everywhere.

Do I need any documentation for a large inward transfer from Australia?

It's worth requesting the inward remittance advice or certificate your bank provides and keeping it on file — it documents the source and purpose of the transfer, which is useful if it's ever queried later.