Can an NRE account be converted to NRO?

Yes, an NRE (Non-Resident External) account can be converted to an NRO (Non-Resident Ordinary) account under certain circumstances. This usually happens when an NRI returns to India and changes their residential status to Resident but Not Ordinarily Resident (RNOR) or Resident.

Reasons for Conversion:

1. Change in Residential Status: When an NRI returns to India and becomes a resident as per Indian tax laws, the NRE account must be converted to an NRO account.
2. Regulatory Compliance: As per RBI guidelines, once the residential status changes, maintaining an NRE account is not permissible.