What is the penalty for not converting resident account to NRO ac?

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As per FEMA rules, the penalty for not converting resident account to an NRO account is up to 3 times the amount involved in it or Rs 2 lakh when the sum is not quantifiable. A daily penalty of Rs 5,000 will also be charged from the 1st day of intervention until the penalty is paid.

Topic: Convert Resident Account to NRO Account Article

2 Comments

2. saurabh

| Link|November 10, 2022 5:33:19 PMReply

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As per FEMA rules, the penalty for not converting resident account to an NRO account is up to 3 times the amount involved in it or Rs 2 lakh when the sum is not quantifiable. A daily penalty of Rs 5,000 will also be charged from the 1st day of intervention until the penalty is paid.

1. Arun Thomas

| Link|March 9, 2023 5:37:10 AMReply

Hi All - It seems that I have forgotten to convert one of my Resident Savings Accounts in India (SBI Bank) to a NRO Account. I am planning to go ahead with the same. I was reading the penalties - seems pretty stiff.
If I go ahead with the same, will I be charged a Penalty OR will a Penalty be charged ONLY if I am caught in an audit. Has anybody faced these issues and how did they overcome the same without paying the penalty.

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