Credits to Non-Resident External Rupee (NRE) Accounts - FEMA - 005

Credits to Non-Resident External Rupee (NRE) Accounts RESERVE BANK OF INDIA EXCHANGE CONTROL DEPARTMENT CENTRAL OFFICE MUMBAI - 400 001 A.P.(DIR Series) Circular No.5 July 15, 2002 To All Authorised Dealers in Foreign Exchange Madam/Sirs, Credits to Non-Resident External Rupee (NRE) Accounts Attention of authorised dealers is invited to paragraph No.3 of Schedule 1 to Reserve Bank Noficiation No.FEMA.5/2000-RB dated May 3, 2000 regarding permitted credits to NRE Rupee Accounts and A.P. (DIR Series) Circular No.45 dated May 14, 2002 permitting them to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for. 2. It is clarified that authorised dealers may credit the current income like rent, dividend, pension, interest, etc. of NRIs to their Non-Resident (External) Rupee Accounts provided they are satisfied that the credit represents current income of the non-resident account holder and income tax thereon has been deducted/paid/provided for, as the case may be. 3. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned. 4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, GRACE KOSHIE Chief General Manager