I would like send/lend money from US account to My brother-in-law's Indian account(international wire transfer) for 30 lakhs. This will be no interest loan to him. My brother-in-law needs this money for buying house.He will be returning money back to me after 3 months.
Can my brother-in-law wire back money to my US account from his Indian account after 3 months?
I assume that some CA certificate would be needed
What is exact process for this ?

1 Answer 1


The simplest way is you transfer the funds into your NRE account in India. From the NRE account transfer the funds to your brother-in-law and show the purpose as Loan. From 2012 onwards RBI has simplified things under FMEA and your brother-in-law can deposit/repay the loan back into the NRE account.

Once the funds are in NRE account you can repatriate then whenever you like. This entire process requires less paperwork.

The option you have suggested is also fine, however your brother-in-law needs to engage the services of a CA and he will authenticate the purpose of remittance to the Bank. Based on this certificate the Bank will transfer the funds outside of India.

  • May be I am wrong, but I thought deposits to NRE account in rupees is not allowed.
    – Kint Kant
    May 19, 2015 at 11:26
  • @KintKant You are right, generally deposits to NRE account should come outside of India [currency does not matter]. There are exceptions when certain types of deposits can be done locally.
    – Dheer
    May 19, 2015 at 14:32

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