How to Transfer Money from NRE Account to GIFT City

A question came up in our WhatsApp community last week that stopped us in our tracks.

"I have ₹40 lakhs sitting in my NRE FD. Can I move some of it to GIFT City? Or do I need to send fresh money from Dubai?"

The short answer surprised most people in the group. You can do both. Your NRE account is a perfectly valid funding source for GIFT City investments.

But the process isn't as straightforward as an NEFT transfer between two Indian accounts. There's a currency conversion involved, a SWIFT transfer to navigate, and a few cost traps most banks won't warn you about.

At Belong, we've walked hundreds of NRIs through this exact process. This guide covers every step, every cost, and every mistake we've seen along the way.

Why Can't You Just Do a Regular Bank Transfer?

This trips up most NRIs. Your NRE account sits in Mumbai or Delhi. GIFT City sits in Gandhinagar, Gujarat. Same country, right?

Not exactly.

Under FEMA (Foreign Exchange Management Act), GIFT City's IFSC is treated as foreign territory for financial purposes. Every transaction inside GIFT City happens in foreign currency.

No rupees allowed. The IFSCA (International Financial Services Centres Authority), not the RBI, regulates it.

So when you move money from your NRE account (which holds Indian rupees) to a GIFT City IBU account (which holds US dollars, euros, or dirhams), you're technically making an outward remittance.

That's why it goes through SWIFT, not NEFT or RTGS.

👉 Tip: Think of your NRE account as "India territory" and GIFT City as "international territory." The bridge between them is a SWIFT transfer with currency conversion. Use Belong's NRI FD rate comparison tool to check whether the GIFT City rates justify the switch.

The Two Ways NRIs Fund GIFT City Accounts

Before diving into the NRE route, you should know there are two main funding paths.

Path 1: Direct overseas transfer.

You send money from your UAE, US, or UK bank account directly to your GIFT City IBU account.

This is the cleanest route. Your AED or USD stays in foreign currency throughout. No conversion at the Indian bank end.

Path 2: Transfer from your NRE account in India.

Your rupees get converted back to foreign currency (typically USD) and then wired via SWIFT to your GIFT City account.

The direct overseas route avoids the forex markup entirely. But many NRIs already have lakhs parked in NRE fixed deposits or NRE savings accounts. For them, the NRE-to-GIFT-City path makes practical sense.

👉 Tip: If you're earning in AED and want to start a GIFT City USD FD, the overseas route saves you the 1–3% currency markup that Indian banks charge. But if you have idle NRE funds earning 6.5–7% and want to redirect maturing FD proceeds to a tax-free GIFT City FD, the NRE transfer route works well.

Step-by-Step: Moving Money from NRE to GIFT City

Here's the exact process, broken into stages.

Stage 1: Open a GIFT City IBU Account

You cannot transfer money to GIFT City without a receiving account. This account is called a Global Savings Account or Foreign Currency Account, held at an IFSC Banking Unit (IBU).

Banks with active IBUs include ICICI Bank, HDFC Bank, Axis Bank, SBI, RBL Bank, Federal Bank, IDFC First Bank, and Yes Bank.

Documents you'll need: valid passport, UAE residence visa or Emirates ID, PAN card, overseas address proof (utility bill or bank statement from the last 3 months), and source of funds proof.

Most banks now offer video KYC. Through Belong, the entire process is digital. No branch visit needed. Account opening typically takes 3–7 working days.

One critical rule from ICICI Bank's IBU: your GIFT City savings account must be funded within 30 days of opening. If it stays unfunded for over 90 days, the bank can initiate closure. (Source: ICICI Bank GIFT City FAQs)

Stage 2: Get Your GIFT City Account Details Ready

Once your IBU account is open, note these details carefully. You'll need them to set up the SWIFT transfer from your NRE bank.

The critical details: your GIFT City account number, the bank's SWIFT/BIC code (each IBU has a unique one), the bank name and branch address (GIFT City, Gandhinagar, Gujarat), and your own name as registered.

👉 Tip: Double-check every character of the SWIFT code. One wrong letter can delay your transfer by days. If you opened your account through Belong, these details are visible inside the app.

Stage 3: Initiate the Transfer from Your NRE Bank

The exact steps depend on which bank holds your NRE account. Most major banks offer this through their outward remittance platforms.

If your NRE account is with ICICI Bank, use the Money2World feature on iMobile Pay.

Go to Send Money → Transfer Overseas → confirm the GIFT City destination → add your IBU account as a new receiver → enter SWIFT code and account details → select transfer amount and purpose → confirm with OTP.

We've documented the full process with screenshots in our ICICI to GIFT City transfer guide.

If your NRE account is with IDFC First Bank, use the Pay Abroad feature. The process is similar: add your GIFT City IBU as a beneficiary, enter SWIFT details, initiate the transfer, and confirm with OTP.

There's a 24-hour cooling period for new beneficiaries with a ₹2,50,000 limit during that window. Our IDFC First Bank to GIFT City guide covers each screen.

For other banks (HDFC, SBI, Axis, Kotak): look for the outward remittance or foreign transfer section in your net banking or mobile app.

The process follows the same pattern: add GIFT City account as overseas beneficiary via SWIFT code, select purpose code, and authorize.

For NRE account holders, no additional documents are typically required for outward transfers. NRE accounts are fully repatriable by design. (Source: ICICI Bank, IDFC First Bank)

Stage 4: Wait for Funds to Arrive

SWIFT transfers typically take 1–3 working days. Requests submitted before 3 PM IST on working days are processed same day at most banks.

Once the foreign currency lands in your GIFT City Global Savings Account, you can immediately book a USD fixed deposit, invest in GIFT City mutual funds, or explore alternative investment funds.

The Hidden Cost: Currency Conversion Markup

This is where NRIs lose money without realizing it.

Your NRE account holds rupees. GIFT City needs dollars (or another foreign currency). When you initiate the transfer, your bank converts INR to USD. The rate they give you is not the Google rate or the mid-market rate.

Banks add a "spread," which is the difference between what they pay for the currency and what they charge you.

According to RBI data, the average spread charged by Indian banks on major currency conversions ranges from 0.5% to 3.5%. (Source: Belong's hidden fees analysis)

Here's what that looks like in real numbers. Say you're transferring ₹25 lakhs to GIFT City. Google shows USD/INR at 84.50.

Your bank applies a rate of 85.50. On ₹25 lakhs, that 1.18% markup costs you roughly $350. On larger amounts, it adds up fast.

Illustrative. Based on USD/INR rate of 84.50. Actual spreads vary by bank and transfer size.

On top of the forex spread, expect these fixed charges: SWIFT processing fee (₹500–₹1,500), correspondent bank charges ($15–$25 deducted from the receiving end), and GST on the service fee.

👉 Tip: For transfers above ₹25 lakhs, call your bank's treasury desk and negotiate a better exchange rate.

Most banks have flexibility on large conversions but won't offer it unless you ask. Compare the total cost against sending fresh money from your UAE bank, which avoids the INR conversion entirely.

Do NRIs Pay TCS on NRE to GIFT City Transfers?

No.

Tax Collected at Source (TCS) under Section 206C(1G) of the Income Tax Act applies only to Indian residents making outward remittances under the Liberalised Remittance Scheme (LRS).

NRIs are not residents under FEMA. NRE accounts hold foreign-earned money that is already fully repatriable.

Multiple authoritative sources confirm this.

Wise states that NRIs with NRE accounts repatriating funds are not required to pay TCS. (Source: Wise TCS guide) ICICI Bank's own LRS guide confirms that NRIs cannot remit under LRS and hence are not liable for TCS. (Source: ICICI Bank LRS article)

This is a meaningful advantage. Indian residents sending money to GIFT City face 20% TCS on amounts above ₹10 lakhs per financial year (post Budget 2025–26). NRIs face zero TCS.

👉 Tip: If your bank asks about TCS during the transfer process, clarify that you hold an NRE account (not a resident savings account) and that TCS under LRS doesn't apply to NRIs. Some bank branches confuse NRE outward remittances with resident LRS transfers.

Is There a Transfer Limit from NRE to GIFT City?

No annual cap for NRIs.

NRE accounts are fully repatriable without any ceiling. The $250,000 per year LRS limit applies only to Indian residents. The $1 million per year cap applies only to NRO accounts.

From your NRE account, you can transfer ₹10 lakhs or ₹10 crores to GIFT City. There is no RBI-mandated upper limit.

The only practical limits are your bank's per-transaction caps (which can usually be raised by calling your relationship manager) and the available balance in your NRE account.

NRE Transfer vs. Overseas Transfer: Which Should You Choose?

This depends on where your money is right now and what it's costing you to move it.

Many NRIs in our community use a hybrid approach. They send their monthly surplus directly from the UAE to GIFT City. When NRE FDs mature, they redirect those proceeds to GIFT City instead of renewing.

What About Transferring from NRO or FCNR Accounts?

Quick comparison of all NRI account types as GIFT City funding sources.

NRO account: Yes, you can transfer from NRO to GIFT City. But the $1 million per financial year repatriation cap applies.

You'll also need Form 15CA/15CB (a chartered accountant's certificate) for amounts above ₹5 lakhs. More paperwork. More friction.

FCNR account: This is actually an efficient route. FCNR deposits already hold foreign currency (USD, GBP, EUR).

When your FCNR matures, you can wire the proceeds directly to GIFT City without any INR conversion. No forex markup. The only cost is the SWIFT transfer fee.

NRE account: Fully repatriable, no cap, no Form 15CA/15CB required. But involves INR-to-USD conversion with a forex spread.

👉 Tip: If you have FCNR deposits maturing soon, route them to GIFT City instead of renewing. You'll get similar or better rates, shorter minimum tenure (7 days vs. 1 year for FCNR), and tax-free interest under Section 10(4E). Compare rates across all deposit types using Belong's FD rate explorer.

Five Mistakes NRIs Make When Transferring to GIFT City

We've seen these patterns repeatedly across our community.

Mistake 1: Not comparing the bank's forex rate before transferring.

Most NRIs check the amount they're sending but not the rate being applied.

Always calculate: Amount in INR ÷ Bank's applied rate = USD received. Then compare with the mid-market rate on Google or XE.com.

Mistake 2: Using the wrong purpose code.

When initiating the outward remittance, you'll be asked to select a purpose. Choose "Investment in foreign securities" or "Deposits with IFSC banking unit" (the exact wording varies by bank).

Wrong purpose codes can delay processing.

Mistake 3: Forgetting the intermediary bank field.

Most GIFT City SWIFT transfers don't need an intermediary bank. If your bank's form asks, select "No."

Unless your specific GIFT City bank has provided intermediary details, skipping this step avoids routing complications.

Mistake 4: Transferring large amounts without calling the treasury desk first.

For amounts above ₹25 lakhs, a phone call to your bank's forex desk can save you thousands in markup.

They have flexibility on rates for large conversions. They just don't advertise it. (Source: Belong's exchange rate guide)

Mistake 5: Not funding the GIFT City account within 30 days.

Once your IBU account is open, fund it promptly. Some banks freeze unfunded accounts after 30 days and initiate closure after 90 days. (Source: ICICI Bank GIFT City FAQs)

What Happens After the Money Reaches GIFT City?

Once USD lands in your Global Savings Account at the IBU, you have several options.

Book a USD fixed deposit. Current rates range from 4.5% to 6% per annum depending on bank and tenure. Minimum deposit starts at $500 through Belong.

Tenure starts from just 7 days. Interest is completely tax-free in India under Section 10(4E) of the Income Tax Act.

Invest in GIFT City mutual funds. Funds like Tata India Dynamic Equity Fund accept investments starting at $500.

Returns are tax-free under Section 10(4D). Explore options through Belong's mutual fund tool.

Explore alternative investment funds. IFSCA reduced the minimum AIF investment to $75,000 in February 2025. These funds invest across private equity, real estate, and structured debt. Browse options on Belong's AIF explorer.

Keep it in savings. Some IBUs offer 3–5% on USD savings account balances. Tax-free in India. No lock-in. Useful as a parking strategy while you decide.

Track GIFT Nifty to time your equity investments if you're considering index-linked products.

Can You Move the Money Back to NRE?

Yes. GIFT City accounts are fully repatriable. You can transfer money back to your NRE account, your overseas bank, or any account worldwide.

The process is the reverse SWIFT transfer. No RBI approval needed. No annual cap for NRIs.

This flexibility is one of GIFT City's strongest advantages over NRO accounts and even traditional NRE FDs.

With NRE FDs, you face early withdrawal penalties if you break the deposit. With GIFT City FDs, tenures start at 7 days, and premature withdrawal terms are more flexible.

What If You're Planning to Return to India?

If you're considering moving back to India in the next few years, this transfer becomes even more strategic.

Your NRE account will convert to a resident savings account once your status changes. NRE FD interest, currently tax-free, becomes taxable.

GIFT City FD interest stays tax-free under Section 10(4E) regardless of your residential status.

Even after you become a resident Indian, the interest on your GIFT City deposits remains exempt. (Source: Income Tax Act, Section 10(4E))

So moving NRE funds to GIFT City before returning creates a permanent tax-free income stream that survives your status change.

👉 Tip: If you're returning within 2–3 years, consider shifting a portion of maturing NRE FDs to GIFT City now. The tax-free status on GIFT City interest will protect your returns long after your RNOR status expires.

Frequently Asked Questions

Can I transfer from my NRE account to GIFT City without visiting a bank branch?

Yes. Most banks now offer online outward remittance through apps like ICICI's Money2World or IDFC First Bank's Pay Abroad. The entire process happens on your phone. No branch visit needed.

Do I need Form 15CA/15CB for NRE to GIFT City transfers?

No. Form 15CA/15CB is required for NRO outward remittances above ₹5 lakhs. NRE account transfers are considered repatriation of foreign earnings and don't require these forms.

Which currency should I choose for my GIFT City account?

USD is the most common and practical choice for UAE-based NRIs since AED is pegged to the dollar. ICICI Bank's IBU also offers accounts in AED, EUR, GBP, CAD, SGD, AUD, and HKD. (Source: ICICI Bank GIFT City FAQs)

How much does the SWIFT transfer cost?

Bank service fees range from ₹500 to ₹1,500. Correspondent banks may charge an additional $15–$25. The biggest cost, though, is the forex markup (0.5%–3%) built into the exchange rate.

Can I set up recurring transfers from NRE to GIFT City?

Not automatically through most banks. Each SWIFT transfer must be initiated manually. However, you can set calendar reminders and initiate monthly transfers in under 5 minutes once the beneficiary is saved.

The Bottom Line

Moving money from your NRE account to GIFT City is legal, straightforward, and increasingly common among NRIs who want tax-free USD returns.

The process uses SWIFT, involves a currency conversion from INR to USD, and takes 1–3 working days.

The real decision isn't whether you can do it. It's whether you should move money that's already in India (NRE) or send fresh funds from abroad.

For most UAE-based NRIs, a combination works best: fresh salary goes directly from the UAE, while maturing NRE FDs get redirected to GIFT City.

Start by comparing rates across deposit types on Belong's FD rate tool. Explore GIFT City mutual funds and AIFs to decide where the money should go after it lands.

Thousands of NRIs in our WhatsApp community are already navigating these transfers and sharing their bank-specific experiences. Join them. And if you want the simplest path to GIFT City investing, download the Belong app to get started.