NRI SERVICES
FACILITIES FOR NON-RESIDENT INDIANS (NRIs)/PERSONS OF INDIAN ORIGIN (PIOs)
1. REMITTANCE
Any amount of remittance in foreign exchange from overseas can be remitted to any Indian individual/firms/ company or to open the following type of accounts as per Government/RBI guidelines.
2. DEPOSITS
I) NON RESIDENT (EXTERNAL) RUPEE ACCOUNT (NRE)
This account can be kept in various forms like Current, Savings, Recurring or Term Deposits. The account is maintained only in Indian Rupees and amount of deposit and interest earned is fully repatriable.
ii) FOREIGN CURRENCY NON-RESIDENT (FCNR) ACCOUNTS (BANKS) SCHEME
This account can be kept in bank for a period of 1 year and above up to and inclusive of 5 years in one of the five specified currencies viz. Pound Sterling, US Dollars, Euro, Australian Dollar or Canadian Dollar.
Income from interest on balances standing to the credit of FCNR (B) accounts is exempt from income tax.
iii) ORDINARY NON-RESIDENT (NRO) ACCOUNT
Any person/entity resident outside India may open NRO account. The account may be held jointly with residents and/or with non-resident. Interest earned on deposits shall be subject to TDS at prevailing rates and interest earned on NRO account is freely repatriable. NRI/PIO may remit through an Authorized Dealer an amount not exceeding USD 1 Million per financial year, out of balance held in the NRO account representing the sale proceeds of assets
(a) Acquired in India out of rupee /foreign currency funds
(b) By way of inheritance /legacy or settlement from a person who was resident in India subject to certain conditions.
3) INVESTMENTS ON REPATRIATION BASIS:
a) Government dated securities/treasury bills. b) Units of domestic mutual funds.
c) Bonds issued by public sector undertakings (PSU) in India
d) Shares in public sector enterprises being dis-invested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids.
e)Shares and convertible debentures of Indian companies under FDI scheme (Including automatic route & FIPB).
f) Shares and convertible debentures of Indian companies through stock exchange under portfolio investment scheme.
g) Perpetual debt instruments and debt capital instruments issued by bank in India. h) Non-convertible debentures of a company incorporated in India.
4) INVESTMENTS ON NON-REPATRIATION BASIS:
a) Units of Money Market Mutual Funds in India.
b)The capital of a firm or proprietary concern in India, not engaged in any agricultural or plantation activity or real estate business.
C) Deposits with a company registered under the Companies Act, 1956 including NBFC registered with RBI, or a body corporate created under an Act of Parliament or State Legislature, a proprietorship concern or a firm out of rupee funds which do not represent inward remittances or transfer from NRE/FCNR (B) Accounts into the NRO Account.
d) Government dated securities (other than bearer securities)/treasury bills. e) Unit of domestic mutual funds.
f) Non-convertible debentures of a company incorporated in India. g) Commercial Paper issued by an Indian company.
h) Shares and convertible debentures of Indian companies other than under Portfolio Investment Scheme.
5) INVESTMENT IN IMMOVABLE PROPERTY:
a) NRIs may acquire immovable property in India other than agricultural/plantation property or a farm house out of repatriable and non repatriable funds.
b) Housing loan in rupees availed of by NRIs from ADs/Housing financial institutions can be repaid by the close relatives in India of the borrower.
c)Sale proceeds of immovable property acquired in India to the extent of repatriable funds used for acquiring the property, without any lock-in period, up to two residential properties.
d) Refund of
(i) application/earnest money/purchase consideration made by house building agencies/seller on account of non-allotment of flats/plots
(ii) Cancellation of booking/deals or purchase of residential/commercial properties, together with interest, net of taxes, provided original payment is made out of NRE/FCNR (B) account/inward remittances.
6) FACILITIES FOR RETURNING NRIs/PIOs
a) Returning NRIs/PIOs may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India.
b) Returning NRIs/PIOs may open, hold and maintain with an authorized dealer in India a Resident Foreign Currency (RFC) account in any permitted currency in the form of savings, current and term deposits, to transfer balances held in NRE/FCNR (B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account.
Source: www.psbindia.com/webnri.pdf, Punjab & Sind Bank,
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