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TMI BlogMaster Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals.X X X X Extracts X X X X X X X X Extracts X X X X ..... pdated Master Circular on the subject. Yours faithfully, (Meena Hemchandra) Chief General Manager-in-Charge Master Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals INDEX 1 Remittance facilities for Non Resident Indians (NRIs) / Persons of Indian Origin (PIO) and Foreign Nationals 2 Definition 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 Remittance of Salary 7 Repatriation of sale proceeds of residential property purchased by NRIs / PIO out of foreign exchange 8 Facilities for students 9 Income-tax clearance 10 International Credit Cards Annex-1 Statement / returns to be submitted to the Reserve Bank Annex-2 Operational Instructions for Authorised Dealer Banks APPENDIX List of notifications/circulars which have been consolidated in this Master Circular 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 Notification Nos. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n employment in India or who has inherited assets from a person resident in India or who is a widow of an Indian citizen who was resident in India, may remit an amount not exceeding USD one million, per financial year (April-March), subject to the satisfaction of the Authorised Dealer bank, on production of documentary evidence in support of acquisition / inheritance of assets, 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. 4.2 These remittance facilities are not available to citizens of Nepal and Bhutan. 5. Remittance of assets by NRI/PIO 5.1 A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) may remit an amount up to USD one million, per financial year, out of the 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, subject to the satisfaction of the Authorized Dealer bank, and on production of an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... outside India and on deputation to the office/ branch/ subsidiary/ joint venture in India of such foreign company, may open, hold and maintain a foreign currency account with a bank outside India and receive the whole salary payable to him for the services rendered to the office/ branch/ subsidiary/ joint venture in India of such foreign company, by credit to such account, provided that income tax chargeable under the Income Tax Act, 1961 is paid on the entire salary as accrued in India. [The above provisions on remittance of Salary should be read with Schedule III (7) of FEM (Current Account Transactions) Rules, 2000] 7. Repatriation of sale proceeds of residential property purchased by NRIs / PIO out of foreign exchange 7.1 Repatriation of sale proceeds of residential property purchased by NRI / PIO is permitted to the extent of the amount paid for acquisition of immovable property in foreign exchange received through banking channels. The facility is restricted to not more than two such properties. The balance amount can be credited to the NRO account and can be remitted under USD one million facility as mentioned in paragraph 5.1. 7.2 Authorised Dealer banks may permit rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it Cards Authorised Dealer banks have been permitted to issue International Credit Cards to NRIs/PIO, without prior approval of the Reserve Bank. Such transactions may be settled by inward remittance or out of balances held in the cardholder's FCNR(B) / NRE / NRO accounts. Annex-1 Statement / returns to be submitted to the Reserve Bank Master Circular on Remittance Facilities for Non-Resident Indians/Persons of Indian Origin / Foreign Nationals Particulars of statement Periodicity Relevant instructions Facilities to NRIs/PIO and Foreign Nationals - Liberalisation- Remittance from NRO account. Quarterly A.P. (DIR Series) Circular No. 12 dated November 16, 2006 Annex-2 Operational Instructions for Authorised Dealer Banks 1. General 1.1 Authorised Dealer banks may carefully study the provisions of the Act / Regulations / Notifications issued under the Foreign Exchange Management Act, 1999 (the Act). 1.2 Reserve Bank will not prescribe the documents which should be verified by the Authorised Dealer banks while permitting remittances for various transactions. In this regard Authorised Dealer banks may refer to sub-section (5) of Section 10 of the Act. 1.3 In terms of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty is not available to citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan. (b) The facility of remittance of sale proceeds of other financial assets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan. 4. Tax compliance Authorised dealer banks can allow remittances to non-residents only on production of an undertaking by the remitter and a Certificate from a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No.10/2002 dated October 9, 2002. [cf. A.P. (DIR Series) Circular No.56 dated November 26, 2002]. APPENDIX List of notifications/circulars which have been consolidated in this Master Circular http://www.rbi.org.in/Scripts/BS_ApCircularsDisplay.aspx http://www.rbi.org.in/Scripts/Bs_FemaNotifications.aspx Sl. No. Notification/Circular No. Date 1. Notification No. FEMA 62/2002-RB May 13, 2002 2. Notification No. FEMA 65/2002-RB June 29,2002 3. Notification No. FEMA 93/2003-RB June 9, 2003 4. Notification No. FEMA 97/2003-RB July 8, 2003 5. Notification No. FEMA 119/2004-RB June 29,2004 6. Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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