I have maturing LIC policies and PPF which I want to be deposited into my SBINRO account. Other banks and LIC attempted NEFT but it returned back. I also attempted to online transfer INR 500 from another Indian Bank saving account, it also returned back with reason R12 which means NRI account accepts only foreign exchange.

Previoisly, I was told that NRO account works like local saving account and accepts INR deposits. What is wrong and how to fix?

Regards Avtar

  • 1
    Have you tried asking the bank you have the NRO account with?
    – glibdud
    Aug 23, 2022 at 13:21
  • When RTGS was failed, I asked SBI but they said everything is fine and money should be transferred. They said that only source bank can check for error not SBI
    – avtar jain
    Aug 23, 2022 at 20:54

1 Answer 1


State Bank of India (SBI) is incapable of distinguishing between NRE and NRO accounts. When I opened an NRO account at SBI while in India, they gladly accepted INR 100 cash as the initial deposit. But, then they gave me a cheque book pre-printed with NRE on it, and when I said that I was opening an NRO account, the clerk said, "Don't worry about that. Just cross off NRE, write NRO on each cheque and initial the correction." Lo and behold, the actual account as on the SBI books was in fact an NRE account, and wouldn't accept INR payments generated in India. I just wrote off that INR 100 as the price of a lesson.

Open a legitimately NRO account in a non-sarkari bank and you will be fine.

  • This is scary. If I knew it then I would have removed my money from SBI before chaging its status. Does this mean that my all hard earned money is now frozen?
    – avtar jain
    Aug 23, 2022 at 20:53
  • "Does this mean that my all hard earned money is now frozen?" Money in an NRE account can be repatriated abroad, though you may have to fill out a few forms to do so. There shouldn't be any tax consequences for this since it is your money that you are moving from one bank to another; it is not income of any kind. Aug 24, 2022 at 13:25
  • How can I get settlement INR money from LIC, PPF and FD into SBI account? I gave them cancelled cheques of SBI. 2 transactions are already failed. I can no longer open ordinary residence account anymore. What are my choices?
    – avtar jain
    Aug 25, 2022 at 14:30

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