However, when it comes to crediting your NRE account, you cannot ask someone to issue a domestic cheque from an Indian Bank and credit your NRE account. That is not possible, as the cheques would be dishonoured. The following are the ways in which credit to an NRE account is possible.
Credits that are permitted
Credits are possible from another NRE account of a NRI. If a Non Resident Indian has an NRE account in State Bank of India, he can issue a Cheque to another Non Resident Indian with a NRE account in ICICI Bank. The individual with an a NRE account in ICICI Bank can deposit the same.
Also, the proceeds of remittances received from abroad in freely convertible currency through normal banking channels like RTGS may also be credited freely into the NRE account.
Traveller's Cheques or foreign currency tendered by the account holder during his temporary visit to India, are permissible.
Interest and maturity proceeds of Government securities provided they were purchased from the NRE account.
On the other hand for an NRO Account, every possible credit including the acceptance of local cheques is allowed. But, funds in the NRO account are not repatriable in every case like NRE Accounts.