Facts:
Mr. A, an NRI, expects to receive pension income from India and wonders if he can deposit it into his NRE account.

Legal Position:

• NRE Account Eligibility:
  NRIs and Persons of Indian Origin (PIOs) are allowed to open and maintain NRE accounts with authorized banks in India as per the Foreign Exchange Management (Deposits) Regulations, 2016.
• Permissible Credits to NRE Account:
  According to RBI Master Directions, credits such as rent, dividend, pension, interest, etc. are allowed to be deposited into an NRE account provided:
  • The credit represents current income of the NRI/PIO account holder.
  • The authorized dealer is satisfied about the nature of the income.
  • Income tax on the income has been deducted/paid/provided for as applicable.

Conclusion:

Mr. A can deposit his pension income earned in India into his NRE account, as pension is classified as current income and is an eligible credit, subject to income tax compliance and bank verification.