TMI BlogRegulation 5(1)(i) - Non-Resident (External) Rupee Account SchemeX X X X Extracts X X X X X X X X Extracts X X X X ..... ls/entities of Bangladesh/Pakistan nationality/ownership requires approval of Reserve Bank. 2. Types of accounts: The accounts may be maintained in any form, e.g. savings, current, recurring or fixed deposit account etc. 3. Permitted Credits: (a) Proceeds of remittances to India in any permitted currency. (b) Proceeds of personal cheques drawn by the account holder on his foreign currency account and of travellers cheques, bank drafts payable in any permitted currency including instruments expressed in Indian rupees for which reimbursement will be received in foreign currency, deposited by the account holder in person during his temporary visit to India, provided the authorised dealer/bank is satisfied that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Indian companies or portion thereof, if the amount of subscription was paid from the same account or from other NRE/FCNR account of the account holder or by remittance from outside India through normal banking channels. 1 (i) Refund of application/earnest money/purchase consideration made by the house building agencies/seller on account of non-allotment of flat/ plot/cancellation of bookings/deals for purchase of residential/commercial property, together with interest, if any (net of income tax payable thereon), provided the original payment was made out of NRE/FCNR account of the account holder or remittance from outside India through normal banking channels and the authorised dealer is satisfied about the genuineness of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her by adjustment of the deposit or by fresh inward remittances from outside India through normal banking channels. The loan can also be repaid out of local rupee resources in the NRO account of the borrower. The interest on such loans shall be in accordance with directives issued by Reserve Bank from time to time ; (ii) the purpose of making direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms/companies subject to compliance with the provisions of the Foreign Exchange Management (Transfer of Indian security by a person resident outside India) Regulations, 2000 and Foreign Exchange Management (Investment in proprietary or a partnership firm) Regulations, 2000. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the security of funds held in the NRE accounts in India and also agree to remittance of the funds from India, if necessary, for liquidation of the outstandings. 3 (d) The loans and facilities granted under this paragraph shall be subject to such directions as may be issued by the Reserve Bank from time to time. 7. Change of resident status of the account holder: NRE accounts should be redesignated as resident accounts or the funds held in these accounts may be transferred to the RFC accounts (if the account holder is eligible for maintaining RFC account) at the option of the account holder immediately upon the return of the account holder to India for taking up employment or for carrying on business or vocation or for an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorised dealer is satisfied that the person has not ceased to be a non-resident. 2 (c) Operations by Power of Attorney: - Authorised dealers/ authorised banks may allow operations on an NRE account in terms of Power of Attorney or other authority granted in favour of a resident by the non-resident account holder, provided such operations are restricted to withdrawals for local payments or remittance to the account holder himself through normal banking channels. In cases where the account holder or a bank designated by him is eligible to make investments in India, the Power of Attorney holder may be permitted by the authorised dealers/banks to operate the account to facilitate such investment. The resident Power of Attorney ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n such accounts are exempt from wealth tax. (h) Reporting: - The transactions in these accounts shall be reported to the Reserve Bank in accordance with the directions issued by it from time to time. ****************** Notes : 1. Has been substituted vide Notification No. 064/2002 dated 29/6/2002 , before it was read as, Refund of application/earnest money made by the house building agencies on account of non-allotment of flat/plot, together with interest, if any (net of income tax payable thereon), provided the original payment was made out of NRE/FCNR account of the account holder or remittance from outside India through normal banking channels and the authorised dealer is satisfied about the genuineness of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
