TMI BlogRegulation 5(1)(iii) - NON-RESIDENT ORDINARY RUPEE( NRO) ACCOUNT SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... y person resident in India against reimbursement in rupees or in any other manner. (c) At the time of opening of the account, the account holder should furnish an undertaking to the authorised dealer/authorised bank with whom the account is maintained that in cases of debits to the account for the purpose of investment in India and credits representing sale proceeds of investments, he will ensure that such investments/disinvestments will be in accordance with the regulations made by Reserve Bank in this regard. NOTES: A. Opening of accounts by individuals/entities of 3 [ *** ] /Pakistan nationality/ ownership requires approval of Reserve Bank. B. Post Offices in India may maintain savings b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment to, a Person Resident Outside India), as amended from time to time, provided the beneficiary of the account is a NRI as defined in Foreign Exchange Management (Deposit) Regulations, 2000. (iv) Amount in rupees received 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. ] (B) Debits (i) All local payments in rupees including payments for investments subject to compliance with the relevant regulations made by the Reserve Bank. (ii) Remittance outside India of current income in India of the account holder net of applicable taxes. 4. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectives. B. To Third parties.- Loans/overdrafts to resident individuals/firms/companies in India may be granted against the security of deposits held in NRO accounts, subject to the following terms and conditions. (i) The loans shall be utilised only for meeting borrower's personal requirements and/or business purpose and not for carrying on agricultural/plantation activities or real estate business, or for relending. (ii) Regulations relating to margin and rate of interest as stipulated by Reserve Bank from time to time shall be complied with. (iii) The usual norms and considerations as applicable in the case of advances to trade/industry shall be applicable for such loans/ facilities. 6. Treatment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed by the Bank from time to time and subject to tax compliance. 8. Change of Resident Status of Account holder (a) From Resident to Non-resident When a person resident in India leaves India for a country (other than Nepal or Bhutan) for taking up employment, or for carrying on business or vocation outside India or for any other purpose indicating his intention to stay outside India for an uncertain period, his existing account should be designated as a Non-Resident (Ordinary) account. (b) From Non-resident to Resident NRO accounts may be re-designated as resident rupee accounts on the return of the account holder to India for taking up employment, or for carrying on business or vocation or for any other purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation : 'Quarterly basis' means, quarter as at end of March/June/September and December of every year. ] ************ Note: 1. Has been inserted vide Notification No. 158/2007 dated 3/9/2007 2. Inserted vide Notification No. FEMA 235/2012-RB, Dated 25-09-2012 , with effect from 16th day of September, 2011 3. Omitted vide Notification No.FEMA.253/2013/RB, dated 02.01.2013 , before it was read as:- Bangladesh 4. Inserted vide Notification No.FEMA.253/2013/RB, dated 02.01.2013 . 5. Inserted vide Notification No.FEMA.253/2013/RB, dated 02.01.2013 . - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation Tax Management Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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