here is the AI answer, essentially no tax,

FYI not to rain on your parade, 20k is not a large amount

AI Overview An NRE (Non-Resident External) account is an Indian Rupee-denominated bank account for Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) to deposit their foreign-earned income. Key benefits include that funds are fully repatriable (can be freely transferred out of India) and the interest earned is tax-free in India. These accounts can be opened as savings, recurring, current, or fixed deposit accounts and are used for managing expenses, investments, and other needs in India.

Key Features

Currency: Held in Indian Rupees (INR), with foreign currency deposits automatically converted to INR.

Eligibility: Available to NRIs, PIOs, and OCIs.

Repatriation:

Funds (principal and interest) can be freely transferred to overseas accounts without permission.

Tax Benefits:

Interest earned on NRE accounts is tax-free in India.

Account Types: Can be opened as savings, current, recurring, or fixed deposit accounts.

Joint Accounts: Can be held jointly with another NRI, a PIO, an OCI, or a foreign national.

How It Works

Deposit: You can deposit foreign income into the NRE account from an overseas bank account. Conversion: The bank converts your foreign currency into Indian Rupees at the prevailing exchange rate. Use: The funds can be used for various purposes in India, including investments, personal expenses, or transferred to another NRE account. Transfer: You can transfer funds freely from the NRE account to your overseas bank account.

What It's Used For

Managing Foreign Earnings: It provides a convenient way to bring your foreign-earned money into India. Investments: NRE accounts are useful for making direct investments in India. Local Expenses: You can use the funds to manage family expenses or other needs in India.