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I am NRI staying in USA and I am planning to take a Home loan in India.To process the loan, I am being asked to open NRE and NRO accounts. I know few details about these accounts.

NRE - Deposit only in Foreign currency ($); No Tax has to be paid for interest earned.

NRO - Both local and foreign currency deposits allowed. Tax has to be paid for interest earned.

I have a serious doubt in money transfer from NRE to NRO. Is it possible to move money from NRE to NRO account. I would like to move USD earning to NRE and further move money in NRE to NRO account as I am planning to give NRO account to HDFC Home loan for EMI processing.

I chose NRO because if I move back to India, I don't have to change the account details for EMI processing and also I can deposit money from other savings account to NRO; Don't have to depend on USD earnings.

Please share me your ideas and throw light on this.

Thanks a lot !

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Is it possible to move money from NRE to NRO account

Yes you can move money from NRE to NRO without any issue. You can't do the other way round. i.e. Move money from NRO to NRE.

I would like to move USD earning to NRE

Yes you can

further move money in NRE to NRO account

Yes you can

I am planning to give NRO account to HDFC Home loan for EMI processing

Yes you can. Depending on your long term plan it may not be a good idea.

For example if you were to sell the house you cannot move the funds into NRE and outside of India without some amount of paperwork.

However if you pay the EMI via NRE account, on the sale of house, you can transfer the funds into NRE account to the extent of the loan paid and the Original downpayment [if made from NRE account].

also I can deposit money from other savings account to NRO;

As an NRI, you can't hold ordinary savings account in India. This is violation of norms. Please have any/all savings account in India converted to NRO at the earliest.

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