NRIs/OCBs are granted the following facilities : Maintenance of Bank accounts in India Investments in securities/shares of, and deposits with, Indian firms/ companies. Investments in immovable properties in India.
Learn More Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs?Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned body/trust is required to furnish a certificate from an overseas auditor/chartered accountant/certified public accountant in form OAC where the ownership/beneficial interest is directly held by NRIs and further that such ownership interest is …
Learn More What is an OCB?Overseas Corporate Bodies (OCBs) are bodies predominantly owned individuals of Indian Origin or nationality resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts …
Learn More Who is a person of Indian Origin?For the purposes of availing of the facilities of opening and maintenance of bank accounts and investments in shares / securities in India: A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of India origin, if, he, at any time, held an Indian passport. he or either of his …
Learn More Who is a non-resident Indian (NRI)?An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in UN organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as …
Learn More Whether the EEFC balances can be covered against exchange risk?Yes, the EEFC account balances can be hedged. The balances in the account sold forward by the account holders has to remain earmarked for delivery. However, the contracts can be rolled over.
Learn More Is there any restriction on withdrawal in rupees of funds held in an EEFC account?No. there is no restriction on withdrawal in Rupees of funds held in an EEFC account. However, the amount withdrawn in Rupees shall not be eligible for conversion into foreign currency and for-re-credit to the account.
Learn More Whether EEFC account can be opened by Special Economic Zone (SEZ) Units?SEZ Units cannot open EEFC accounts. However a unit located in a Special Economic Zone can open a Foreign Currency Account with an authorized dealer in India subject to certain conditions, SEZ Developers can open EEFC accounts.
Learn More Who can open an EEFC account?All categories of foreign exchange earners, such as individuals, companies, etc. who are resident in India, may open EEFC accounts.
Learn More What is an EEFC Account and what are its benefits?Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an authorized Dealer i.e. a bank dealing in foreign exchange. It is a facility provided to the foreign exchange earners, including exporters to credit 100 percent of their foreign exchange earnings to the account, so that the account holders do not …
Learn More Residents can bear Medical Expenses of NRlsResidents will now be allowed to bear the medical expenses of visiting NRls/PIOs close relatives. Earlier, residents were allowed to make payment in rupees towards meeting expenses on account of boarding, lodging and services related to it or travel to and from and within India of a person resident outside India and who is on …
Learn More Loans given to NRI Close Relatives can be repaidResident individuals are now granted general permission to repay loans availed of from banks in Rupees in India by their NRI close relatives. Loans would have to be repaid by resident, close relative of the Non-Resident Indian by crediting the borrower’s loan account through the bank account of such relative. Earlier, repayment of loans by …
Learn More Loans to NRI Close Relatives can be given in RupeesResident individuals are now permitted to lend to a Non Resident Indian (NRI)/ Person of Indian Origin (PIO) close relative by way of crossed cheque/electronic transfer, subject to the following conditions : The loan should be free of interest and the minimum maturity of the loan should be one year; The loan amount should be …
Learn More Gifts to NRls can be credited to NRO Accounts in RupeesResident individuals are now permitted to make a rupee gift to a NRI/PIO who is a close relative by way of crossed cheque/electronic transfer to the Non-Resident (Ordinary) Rupee Account (NRO) of the NRI/PIO. The gift amount would have to be within the overall limit of USD 200,000 per financial year as permitted under the …
Learn More Sale Proceeds of FDls can be credited to NRE/FCNR (B) AccountSale proceeds of Foreign Direct Investment (FDI) are now permitted to be credited to Non-Resident (External) Rupee (NRE) Account Scheme/Foreign Currency (Non-Resident) Account FCNR (Banks) Scheme (B) accounts. The Nonresident Indians/Persons of Indian Origin should, however, have purchased the consideration out of inward remittance or funds held in their NRE/FCNR (B) accounts. Earlier, the facility …
Learn More Residents can gift Shares/Debentures up to USD 50,000 ValueA person resident in India can now give to a person resident outside India, by way of gift, any security/shares/ debentures of up to USD 50,000 in value per financial year without approval of the Reserve Bank of India. Earlier, a person resident in India could give to a person resident outside India, by way …
Learn More Residents can be Joint Holders in NRE/FCNR AccountsNon-Resident Indians(NRls), are now permitted to open Non-Resident (External) Rupee Account Scheme/Foreign Currency (Non-Resident) Account (Banks) Scheme (B) accounts with their resident close relative(s) on ‘former or survivor’ basis. The resident close relative would be eligible to operate the account as Power of Attorney holder in accordance with existing instructions during the life time of …
Learn More NRls can be Joint Holders in Resident’s SB/EEFC/RFC AccountsIndividual residents in India are now permitted to include non-resident close relative(s) as joint holder(s) in their resident bank accounts as also in Exporter Earners’ Foreign Currency (EEFC) and Residents’ Foreign Currency (RFC) accounts on ‘former or survivor’ basis. Non-resident Indian close relative(s), however, would not be eligible to operate the account during the life …
Learn More Can AD Category-I banks remit proceeds of such accounts on closure?Yes. But AD Category-I banks should ensure that the funds to be repatriated outside India were either received from abroad or they are repeatable in nature or permissible in terms of RBI notification No. FEMA 13/2000 dated 3rd May 2000, as amended from time to time.
Learn More Can foreign nationals resident in India open resident account?Yes. Foreign nationals resident in India can open and maintain a resident Rupee account in India in terms of Notification No.5/2000-RB dated May 3, 2000 viz., Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time.
Learn More What can be done to repatriate the proceeds of an account that has been maintained for more than six months?In such cases, applications for repatriation of balance may be made on plain paper to the Foreign Exchange Department of the Regional Office concerned of the Reserve Bank through the Authorized Dealer bank maintaining the account.
Learn More Can foreign tourists repatriate the balance held in their NRO account at the time of departure from India?Authorized Dealer banks have been allowed to convert the balance in the account for payment to the account holder at the time of departure from India into foreign currency, provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than …
Learn More Can AD Category-I banks remit proceeds of such accounts on closure?Yes. But AD Category-I banks should ensure that the funds to be repatriated outside India were either received from abroad or they are repeatable in nature or permissible in terms of RBI notification No. FEMA 13/2000 dated 3rd May 2000, as amended from time to time.
Learn More Can foreign nationals resident in India open resident account?Yes. Foreign nationals resident in India can open and maintain a resident Rupee account in India in terms of Notification No.5/2000-RB dated May 3, 2000 viz., Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time.
Learn More What can be done to repatriate the proceeds of an account that has been maintained for more than six months?In such cases, applications for repatriation of balance may be made on plain paper to the Foreign Exchange Department of the Regional Office concerned of the Reserve Bank through the Authorized Dealer bank maintaining the account.
Learn More Can foreign tourists repatriate the balance held in their NRO account at the time of departure from India?Authorized Dealer banks have been allowed to convert the balance in the account for payment to the account holder at the time of departure from India into foreign currency, provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than …
Learn More Can the NRO account be used for making local payments?Yes. Tourists can freely make local payments through the NRO account. All payments to residents exceeding INR 50,000 can be made only by means of cheques 1 pay orders 1demand drafts.
Learn More What credits can be made to such accounts?Funds remitted from outside India through banking channel or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO account.
Learn More Can foreign tourists open a bank account in India during their short visit?Yes. Foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account (Current 1Savings) with any Authorized Dealer bank dealing in foreign exchange. Such account can be opened up to a maximum period of 6 months.
Learn More What are the documents required for opening such accounts?Passports and other valid identification proofs are required for opening the accounts. Authorized Dealer banks are also required to follow the Know Your Customer norms while opening of the accounts.
Learn More Can foreign tourists open a bank account in India during their short visit?Yes. Foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account (Current Savings) with any Authorized Dealer bank dealing in foreign exchange. Such account can be opened up to a maximum period of 6 months.
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