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 ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee funds should be supported by encashment certificate, if they represent 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 of USD 200,000 per financial year as permitted under the Liberalised Remittance Scheme (LRS) for a resident individual. (vii) Resident individual to 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hartered Accountant in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India vide their circular No.10/2002 dated October 9, 2002 [cf. A.P.(DIR Series) Circular No. 56 dated November 26, 2002 ]. (b) NRI/PIO may also, within the overall limit of USD one million, as stated above, remit sale proceeds of assets acquired under a deed of settlement made by either of his parents or a close relative (as defined in Section 6 of the Companies Act, 1956 ) and the settlement taking effect on the death of the settler, on production of the original deed of settlement and an undertaking by the remitter and certificate be a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India vide their circular No.10/2002 dated October 9, 2002 [cf. A.P.(DIR Series) Circular No. 56 dated November 26, 2002 ]. 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 Restrictio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with the interest rate etc. directives. 9. Change of residential status of account holder (a) From Resident to Non-resident (i) 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. (ii) Foreign nationals who come to India on employment and become residents in terms of section 2 (v) of FEMA, 1999 and are eligible to open/hold a resident savings bank account are permitted to re-designate their resident account maintained in India as NRO account on leaving the country after their employment to enable them to receive their legitimate dues subject 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 accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emittance or out of balances held in the cardholder s FCNR (B) / NRE / NRO Accounts. 15. Income-Tax The remittances (net of applicable taxes) will be allowed to be made by the Authorised Dealer banks on production of requisite information in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India vide their Circular No. 10/ 2002 dated October 9, 2002 [cf. A.P. (DIR Series) Circular No. 56 dated November 26, 2002 ]. 16. System of quarterly reporting of opening of NRO accounts by individual/s of Bangladesh: The Authorised bank should put in place a system of quarterly reporting whereby each branch of the Authorised bank shall maintain a record of the bank accounts opened by individual/s of Bangladesh nationality and details 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. The report shall contain details of Name/s of the Individual/s, Date of arrival in India, Passport No. and Place/Country of issue, Resid ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
