Receipt From, and Payment to, A Person Resident Outside India - Amendment in Notification No. FEMA 16/2000-RB Dated 3-5-2000 - 237/2012-RB - Foreign Exchange Management

Receipt From, and Payment to, A Person Resident Outside India - Amendment in Notification [No. FEMA 16/2000-RB]/GSR 403(E), Dated 3-5-2000 Notification No. FEMA 237/2012-RB Dated 25-9-2012 G.S.R. 894(E),- In pursuance of the provisions of section 3 of the Foreign Exchange Management Act, 1999 (42 of 1999) , and in partial modification of its Notification No. FEMA16/2000-RB, dated May 3, 2000 (hereinafter referred to as 'the said Notification'), the Reserve Bank hereby directs that the said Notification shall with effect from September 16, 2011@ be amended as under, namely:- 1 [After paragraph (3) of the said Notification, the following paragraph shall be inserted, namely:-] Gift in Rupees (4). An individual resident in India may make a gift to a Non-Resident Indian (NRI)/Person of Indian Origin (PIO), who is a close relative of the resident individual, in rupees by way of crossed cheque/electronic transfer: Provided that - (i) The amount should 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. (ii) The gift amount would be within the overall limit per financial year under the Liberalised Remittance Scheme (LRS) for a resident individual. (iii) It would be the responsibility of the resident donor to ensure that the gift amount being credited is under the LRS and all the remittances/credits under the LRS during the financial year including the gift amount have not exceeded the limit prescribed thereunder. Loan in Rupees to non-resident (5) A resident individual may grant loan in rupees to a NRI relative by way of crossed cheque/electronic transfer subject to compliance with the Regulation 8B of the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 ( Notification No. FEMA 4/2000-RB dated 3rd May, 2000 , as amended from time to time. Explanation : 2 [For the purpose of this Notification] 1. Close relative means relative as defined in section 6 of the Companies Act, 1956 ; 2. NRI, PIO, NRO account shall have meaning as defined in the Foreign Exchange Management (Deposit) Regulations, 2000 ; and 3. Liberalised Remittance Scheme means scheme as notified vide A.P. (DIR Series) Circular No. 64 dated February 4, 2004 as amended from time to time. ____________ @It is clarified that no person will be adversely affected as a result of retrospective effect being given to these regulations. ------------------------- Notes:- 1. Substituted vide CORRIGENDUM DATED 10-9-2013 , before it was read as, After Regulation (3) of the said Notification, the following Regulations shall be inserted, namely:- 2. Substituted vide CORRIGENDUM DATED 10-9-2013 , before it was read as, For the purpose of this regulation,