I have a normal Indian bank account, joint with my mother. Now, I wish to open an NRE account as I no longer live in India. How can I transfer money from this existing Indian account to the new NRE account? To the best of my knowledge the following hold:
- I should convert the normal account to NRO. But then I would pay tax on the interests. So, I'd remove my name from this account and close it or make my mother the sole holder.
- To transfer money to an NRE account, the money must be from a currency different from INR. So I should withdraw INR, convert them to Euros/USD, go to my NRE bank, and deposit this cash. This process would likely result in losses from the transaction rates. Is there another way?