India Banking Guide for Indians in Japan
NRE vs NRO accounts, FEMA remittance rules & how to open from Japan
NRE NRO 口座比較 | FEMA送金 | 在日インド人 2026年版
NRE vs NRO — The Core Difference
As an Indian living and working in Japan, using the wrong account type costs you tax money unnecessarily.
- •Fund with money earned outside India (Japan salary)
- •Interest is 100% tax-free in India (Section 10(4))
- •Fully repatriable — transfer back to Japan anytime, no cap
- •Best for: saving Japan earnings, building India FD portfolio
- •For India-side income — rent, pension, dividends, matured LIC
- •Interest taxable at 30% TDS in India
- •Repatriation capped at USD 1M/year with CA certificate
- •Best for: collecting India-side income, paying EMIs
Money you earned in Japan goes to NRE. Money generated inside India (rent, dividends, pension) goes to NRO. Never deposit Japan salary into NRO — you will pay 30% TDS unnecessarily.
Once you become NRI (stay outside India 182+ days in a financial year), you are legally required to convert your resident savings account to NRO. Continuing to use it as a resident account is a FEMA violation. Contact your Indian bank to re-designate — takes 1-2 weeks with an NRI status declaration.
Open both NRE and NRO accounts, but direct your Japan salary exclusively to NRE. Use NRO only for India-side income like rent or dividends. The tax saving on NRE FD interest alone — 0% vs 30% TDS — can add up to Rs 50,000+ per year if you park Rs 15 lakh in FDs. The account opening costs nothing; choosing the wrong account costs a lot.
No. Japan is NOT on India's ECR (Emigration Check Required) country list. ECR applies only to unskilled workers going to 17 countries, mostly Gulf states. Japan is exempt. You can travel to Japan on any valid work visa without any Protector of Emigrants stamp or emigration clearance. Confirmed by the Ministry of External Affairs ECR country list (2026).