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 ..... ler Category I banks and Authorized banks may refer to respective circulars / notifications for detailed information, if so needed. Yours faithfully, (A K Pandey) Chief General Manager 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. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nes for opening, operating and maintenance of such accounts shall be in accordance with directives/instructions issued by the Reserve Bank from time to time. 4. Joint Accounts with Residents / Non- Residents The accounts may be held jointly with residents and / or with non-residents. 5. Permissible Credits / Debits A. Credits (i) Proceeds of remittances from outside India through normal banking channels received in any permitted currency. (ii) Any foreign currency, which is freely convertible, tendered by the account holder during his temporary visit to India. Foreign currency exceeding USD 5000 or its equivalent in the form of cash should be supported by currency declaration form. Rupee 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 gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (current/savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India. The balance in the NRO account may be converted by the Authorised Dealer bank into foreign currency for payment to the account holder at the time of his departure from India provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon. In case the account has been maintained for a period more than six months, applications for repatriation of balance will have to be made by the account holder concerned on plain paper to the Regional Office concerned of the Reserve Bank. 8. Grant of loans / overdrafts by the Authorised Bank to account holders and third parties (a) Loans to non-resident account holders and to third parties may be granted in Rupees by Authorized Dealer / bank against the security of fixed deposits subject to the following terms and conditions: (i) The loans shall be utilised only for meeting borrower's personal requirements and/or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urces in India of the person concerned. 11. Payment of funds to Non-resident nominee The amount due/payable to non-resident nominee from the NRO account of a deceased account holder shall be credited to NRO account of the nominee with an Authorised dealer / bank in India. 12. Operation of NRO account by Power of Attorney holder Powers have been delegated to the Authorized Dealers/ Authorised banks to allow operations on an NRO account in terms of a Power of Attorney granted in favour of a resident by the non-resident individual account holder provided such operations are restricted to: (i) All local payments in Rupees including payments for eligible investments subject to compliance with relevant regulations made by the Reserve Bank; and (ii) Remittance outside India of current income in India of the non-resident individual account holder, net of applicable taxes. (iii) The resident Power of Attorney holder is not permitted to repatriate outside India funds held in the account other than to the non-resident individual account holder himself nor to make payment by way of gift to a resident on behalf of the non- resident account holder or transfer funds from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cripts/Bs_FemaNotifications.aspx Sl. No. Circular No. Date 1. Notification No. FEMA 62/2002-RB May 13, 2002 2. Notification No. FEMA 97/2003-RB July 8, 2003 3. Notification No. FEMA 119/2004-RB June 29, 2004 4. Notification No. FEMA 133/2005-RB April 1, 2005 5. Notification No. FEMA 156/2007-RB June 13, 2007 1. A.P. (DIR Series) Circular No.45 May 14, 2002 2. A.P. (DIR Series) Circular No.1 July 2, 2002 3. A.P. (DIR Series) Circular No.5 July 15, 2002 4. A.P. (DIR Series) Circular No.19 September 12, 2002 5. A.P. (DIR Series) Circular No.26 September 28, 2002 6. A.P. (DIR Series) Circular No.27 September 28, 2002 7. A.P. (DIR Series) Circular No.56 November 26, 2002 8. A.P. (DIR Series) Circular No.59 December 9, 2002 9. A.P. (DIR Series) Circular No.67 January 13, 2003 10. A.P. (DIR Series) Circular No.43 December 8, 2003 11. A.P. (DIR Series) Circular No.45 December 8, 2003 12. A.P. (DIR Series) Circular No.62 January 31, 2004 13. A.P. (DIR Series) Circular No.43 May 13, 2005 14. A.P. (DIR Series) Circular No.12 November 16, 2006 15. A.P. (DIR Series) Circular No.64 May 25, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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