I am living abroad for the past three years on a student visa, and therefore fall in the 'NRI' category. I have a NRE account where I had sent some funds from abroad.
Lately, I have been thinking to transfer this money to my savings account in another bank in India. Further, I want to invest this money in a business which involves bank account linking, transferring and receiving money (in Indian currency only and where I can not link my NRE account).
I understand the following: I can transfer money from my NRE account to my savings account, NRE account is tax free and savings bank account is taxable.
If I earn some profit on this business and it is taxable, I can file the tax return.
What I want to confirm is whether this process of transferring money from my NRE to my savings account and using it for business is legally 'ok'?
Somebody got me worried about this being in violation of FEMA rules.