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TMI BlogMaster Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign NationalsX X X X Extracts X X X X X X X X Extracts X X X X ..... uly 1, 2008 and be replaced by an updated Master Circular on the subject. Yours faithfully, ( Salim Gangadharan ) Chief General Manager INDEX 1. Remittance facilities for Non Resident Indians (NRIs) /Persons of Indian Origin (PIO) and Foreign Nationals 2. Definitions of NRI/PIO 3. Remittance of current income 4. Remittance of assets by a foreign national of non-Indian origin 5. Remittance of assets by NRI/PIO 6. Repatriation of sale proceeds of residential property purchased by NRIs / PIO out of foreign exchange 7. Facilities for students 8. Income- tax clearance 9. International Credit Cards Annex-1 Annex-2 APPENDIX NOTE 1. Remittance facilities for Non Resident Indians (NRIs) / Persons of Indian Origin (PIO) and Foreign Nationals The Regulations for transfer of assets outside India by a person whether resident in India or not are given in the Notifications No. FEMA 13/2000-RB and FEMA 21/2000-RB both dated May 3, 2000 and the related amendments to these Notifications. Accordingly, remittance of capital assets in India held by a person whether resident in or outside India would require approval ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balances held in his Non-Resident (Ordinary) Rupee (NRO) account / sale proceeds of assets (inclusive of assets acquired by way of inheritance or settlement), for all bonafide purposes, to the satisfaction of the authorized dealer bank, on production of an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No.10/2002 dated October 9, 2002. 5.2 NRI/PIO may remit sale proceeds of immovable property purchased by him out of Rupee funds (or as a person in India) as indicated in para 5.1 above without any lock-in-period. 5.3 In respect of remittance of sale proceeds of assets acquired by way of inheritance or legacy or settlement for which there is no lock-in period, NRI / PIO may submit documentary evidence in support of inheritance or legacy of assets, an undertaking by the remitter and certificate by a Chartered Accountant in the prescribed formats. Settlement is also a mode of inheritance from the parent, the only difference being that the property under the settlement passes to the beneficiary on the death of the owner/parent without any legal procedures/hassles and helps in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.4 Authorisation to Regional Rural Banks (RRBs): With a view to make foreign exchange services available to the NRIs/PIO on a wider scale, RRBs are now authorised to open and maintain FCNR (B) Deposit accounts also by NRIs/PIO. 6.5. Repatriation of maturity proceeds of FCNR (B) deposits: AD Category-I banks and authorised banks are permitted to make remittance of the maturity proceeds of FCNR (B) deposits to the third parties outside India, provided the transaction is specifically authorised by the account holder and the authorised dealer is satisfied about the bonafides of the transaction. 6.6 ESOP to NRI Employees: Authorised dealers are permitted to grant Rupee loans to NRIs employees of Indian companies for acquiring shares of the companies under the ESOP Scheme. The loan scheme should be as per the policy approved by the bank's Board and would further be subject to the conditions indicated in AP (DIR Series) Circular No. 7 dated August 22, 2007. 7. Facilities for students 7.1 Students going abroad for studies are treated as Non- Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA. 7.2 As Non-Residents, they wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed dealer is required to obtain a declaration and such other information from the person (applicant) on whose behalf the transaction is being undertaken that will reasonably satisfy him that the transaction is not designed to contravene or evade the provisions of the Act or any of the Rules or Regulations made or Notifications or directions or orders issued under the Act. Authorised dealers should preserve the information/ documents obtained by them from the applicant before undertaking the transactions for verification by the Reserve Bank. In case the person on whose behalf the transaction is being undertaken refuses or does not give satisfactory compliance of the requirements of an authorised person, he shall refuse in writing to undertake the transactions. Where an authorised person has reasons to believe that a contravention or evasion of the Act or the Rules or Regulations made or Notifications issued thereunder was contemplated in the transaction that he has refused to undertake, he shall report the matter to the Reserve Bank. With a view to maintaining uniform practices, authorised dealers may consider requirements or documents to be obtained by their branches to ensure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... June 29,2004 6. Notification No. FEMA 152/2007-RB May 15, 2007 1. AP (DIR Series) Circular No.45 May 14, 2002 2. AP (DIR Series) Circular No.1 July 2, 2002 3. AP (DIR Series) Circular No.5 July 15, 2002 4. AP (DIR Series) Circular No.19 September 12, 2002 5. AP (DIR Series) Circular No.26 September 28, 2002 6. AP (DIR Series) Circular No.27 September 28, 2002 7. AP (DIR Series) Circular No.35 November 01, 2002 8. AP (DIR Series) Circular No.40 November 5, 2002 9. AP (DIR Series) Circular No.46 November 12, 2002 10. AP (DIR Series) Circular No.56 November 26, 2002 11. AP (DIR Series) Circular No.59 December 9, 2002 12. AP (DIR Series) Circular No.67 January 13, 2003 13. AP (DIR Series) Circular No.101 May 5, 2003 14. AP (DIR Series) Circular No.104 May 31, 2003 15. AP (DIR Series) Circular No.43 December 8, 2003 16. AP (DIR Series) Circular No.45 December 8, 2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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