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TMI BlogMaster Circular on Non-Resident Ordinary Rupee (NRO) AccountX X X X Extracts X X X X X X X X Extracts X X X X ..... y - I banks may refer to respective circulars/ notifications for detailed information, if so needed. Yours faithfully (C D Srinivasan) Chief General Manager INDEX 1. Definitions 2. Eligibility 3. Types of Accounts 4. Joint Accounts with Residents / Non- Residents 5. Permissible Credits /Debits 6. Remittance of Assets 7. Foreign nationals of non-Indian origin on a visit to India 8. Grant of loans/overdrafts by the Authorised Bank to account holders and third parties 9. Change of resident status of account holder 10. Treatment of loans /overdrafts in the event of change in the resident status of the borrower 11. Payment of funds to Non-resident / Resident nominee 12. Operation of NRO account by Power of Attorney holder 13. Facilities to a person going abroad for studies 14. International Credit Cards 15. Income-Tax 16. System of quarterly reporting of opening of NRO accounts by Individuals of Bangladesh Annex-1 Statement/returns to be submitted to the Reserve Bank APPENDIX 1. Definitions Non-Resident Indian (NRI) NRI for this purpose is defined in Regulation 2 of Notification No. FEMA 5 / 2000- RB dated May 3, 2000. In terms of this Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present funds brought from outside India. (iii) Transfers from rupee accounts of non-resident banks. (iv) Legitimate dues in India of the account holder. This includes current income like rent, dividend, pension, interest, etc. (v) Sale proceeds of assets including immovable property acquired out of rupee / foreign currency funds or by way of legacy /inheritance. (vi) Resident individual may make a rupee gift to a NRI/PIO who is a close relative of the resident individual [close relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer. The amount shall be credited to the Non-Resident (Ordinary) Rupee Account (NRO) a/c of the NRI / PIO and credit of such gift amount may be treated as an eligible credit to NRO a/c. The gift amount would be within the overall limit prescribed under the Liberalised Remittance Scheme (LRS) for a resident individual. (vii) Resident individual may lend to a Non-resident Indian (NRI)/ Person of Indian Origin (PIO) close relative [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer, subject to conditions within the overall limit prescribed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal deed of settlement, subject to payment of taxes as prescribed by CBDT from time to time. 6.3 Assets acquired in India out of Rupee funds NRI/PIO may remit sale proceeds of immovable property purchased by him as a resident or out of Rupee funds as NRI/PIO, without any lock-in-period, subject to the above limit of USD 1 million, per financial year. 6.4 Restrictions (a) The remittance facility in respect of sale proceeds of immovable property is not available to citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan. A person or his successor who has acquired immovable property in accordance with Section 6(5) of FEMA, 1999 cannot repatriate sale proceeds of such property outside India except with prior permission of the Reserve Bank. (b) The facility of remittance of sale proceeds of other financial assets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan. 7. Foreign nationals of non-Indian origin on a visit to India NRO (current/savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect to certain conditions. (b) From Non- resident to Resident NRO accounts may be re-designated as resident Rupee accounts on return of the account holder to India for taking up employment, or for carrying on business or vocation or for any other purpose indicating his intention to stay in India for an uncertain period. Where the account holder is only on a temporary visit to India, the account should continue to be treated as non-resident during such visit. 10. Treatment of loans /overdrafts in the event of change in the residential status of the borrower In case of a person who had availed of loan or overdraft facilities while resident in India and who subsequently becomes a person resident outside India, the Authorised Dealer/ bank may at their discretion and commercial judgement allow continuance of the loan/ overdraft facilities. In such cases, payment of interest and repayment of loan may be made by inward remittance or out of legitimate resources in India of the person concerned. 11. Payment of funds to Non-resident nominee The amount due/payable to non-resident nominee from the NRO account of a deceased account holder shall be credited to NRO account of the nominee wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails of such account shall be forwarded to their Head Office. The Head Office of the bank shall furnish details of such accounts on quarterly basis to the Under Secretary (Foreigners), Ministry of Home Affairs, NDCC-II Building, Jai Singh Road, New Delhi - 110 001 E Mail. ii. The report shall contain details of Name/s of the Individual/s, Date of arrival in India, Passport No. and Place/Country of issue, Residential permit reference and date and place of issue, Name of the FRO/ FRRO concerned and the Complete address and contact number of the branch where the bank account is being maintained. Annex 1 Statement/returns to be submitted to the Reserve Bank Particulars of statement Periodicity Relevant instructions Facilities to NRIs/PIO and Foreign Nationals - Liberalisation - Remittance from NRO account. Monthly A.P (DIR Series) Circular No. 106 dated February 18, 2014 APPENDIX List of notifications / circulars which have been consolidated in this Master Circular - Non-Resident Ordinary Rupee (NRO) Account http://www.rbi.org.in/Scripts/BS_APCircularsDisplay.aspx http://www.rbi.org.in/Scripts/Bs_FemaNotifications.aspx Sl. No. Circular No. Date 1. Notification N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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