I have opened an NRE account with IDFC Bank. They are asking me that my first fund should be transferred directly from my US bank account (possibly through wire transfer). Is there any rule like this by RBI? Any link?

IDFC is saying that next transfers could be from other money exchange services like Xoom, TransferWise, etc. However, the first transfer had to be directly from US Bank Account. I have told them that I could provide bank account details in USA, but they are still asking for that first transaction.

Wire transfer generally costs high charge of more than $35-40. I don't want to spend that much money for nothing. This is why I am trying to avoid wire-transfer.

2 Answers 2


They are asking me that my first fund should be transferred directly from my US bank account (possibly through wire transfer).

The FEMA rule is that transfers into an NRE account should be from abroad. This is because the funds in NRE accounts are repatriated and to avoid misuse, the source of funds should be from outside India. A wire transfer establishes this.

Most remittance services like Xoom, Transferwise, Money2India, Remit2India etc. use a local clearing scheme in India such as NEFT. Thus the source of funds in such cases is not known.

This could be the reason that IDFC Bank is insisting to evidence that initial funds have to come from outside India via wire transfer.


  1. Foreign Exchange Management Act

  2. National Electronic Funds Transfer

  • 1
    Yeah. That's true. But TransferWise does mention that NRE account transfer is possible with them: transferwise.com/help/article/1663577/indian-rupee-transfers/…
    – soham
    Commented May 22, 2018 at 10:52
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    Dheer, if what you say is true, then how can IDFC Bank be sure that it is following FEMA rules that "transfers into an NRE account must be a remittance from abroad" in later transactions via Xoom etc because the money is coming in via NEFT? As you say, in such cases, the source of funds is not known to the recipient bank; it could well be money generated in India and thus absolutely not eligible for depositing into an NRE account. For the record, I (just like @Rpant) have not had any trouble opening an NRE account with the initial money transfer being made via a money transfer service. Commented Jan 8, 2019 at 15:02

I never had to do a wire transfer into my NRE account. Did my first transfer through Zoom.

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