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FREQUENTLY ASKED QUESTIONS
Currency
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Foreign Exchange

Government Securities Market

FOREX FACILITIES FOR NRIS/PIOS

NBFCs If you are a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO), you can avail of the following facilities without permission from
the Reserve Bank :
Others
Deposits
Payment Systems
You can open, hold and maintain following types of accounts with an authorised dealer in India i.e. a bank authorised to deal in
foreign exchange.

Non-Resident (Ordinary) Rupee Account – NRO Account

Non-Resident (External) Rupee Account – NRE Account

Foreign Currency Non Resident (Bank) Account – FCNR (B) Account

Salient features of the above accounts are as under :

Particulars FCNR (B) Account NRE Account NRO Account

Joint account of two Permitted Permitted Permitted

or more NRIs

Joint account with Not permitted Not permitted Permitted

another person
resident in India

Currency in which Pound Sterling/ US Indian Rupees Indian Rupees

account is Dollar/Jap.Yen/Euro
denominated

Repatriability –
Principal Freely repatriable Freely repatriable Not repatriable

      (except current
income like rent,
  dividend, pension
etc. and
remittances
indicated under
"Repatriation of
NRO Funds")

Interest Freely repatriable Freely repatriable Freely repatriable

Foreign currency risk Account holder is Account holder is Account holder is

protected against exposed to the exposed to the
changes in INR fluctuations in the fluctuations, in the
value vis-à-vis the value of INR. value of INR to the
currency in which extent of interest
the account is amount.
denominated.
Type of accounts Term deposits only. Current, Savings, Current, Savings,
Recurring, Fixed Recurring, Fixed
Deposits. Deposits.

Period of fixed For terms not less For the periods as For the periods as
deposits than 1 year and not announced by the announced by the
exceeding 3 years deposit taking deposit taking bank.
bank.

Rate of interest Banks are free to Banks are free to Banks are free to
determine interest determine interest determine interest
rates within the rates. rates.
ceiling, if any,
prescribed by the
Reserve Bank

Rupee Loans in India      

against Security of
the funds held in the      
account to :
Permitted Permitted Permitted
Account holder
Permitted Permitted Permitted
Third Party

Foreign currency      
loans outside India
against security of      
the funds held in the
Permitted Permitted Not permitted
account to :
Permitted Permitted Not permitted
Account holder
Third Party

Only account holders can avail of foreign currency loans in India against the security held in FCNR(B) Deposit Account.

Repatriation of NRO funds

Authorised Dealers can allow remittance/s upto USD 1 million, of balances in NRO accounts/of sale proceeds of assets on
production of an undertaking by the remitter togetherwith a certificate issued by a Chartered Accountant in Annexure A and B as
prescribed by the Central Board of Direct axes (CBDT). In the case of repatriation of sale proceeds of immovable property by
NRIs/PIOs, ADs can allow repatriation thereof even if the immovable property was held by the NRIs/PIOs for less than 10 years
provided the cumulative period of holding of the immovable property in India and retention of the sale proceeds of the property in
the NRO Account is not less than 10 years.

Investment in India :

You can invest in :

Government Securities/Units with repatriation rights.

Company shares/Debentures with repatriation rights.

Shares/debentures of Indian companies through stock exchange under port-folio investment scheme with repatriation rights.

Indian companies without any limit on non-repatriation basis, freely.

For details please refer to Reserve Bank’s Notifications No.FEMA.20/RB-2000 and No.FEMA.24/RB-2000 dated May 3, 2000 as amended
from time to time.

Immovable property

You can acquire –

immovable property in India other than agricultural/plantation property or a farm house, if you are an NRI.

immovable property other than agricultural land/farm house/plantation property in India out of repatriable funds, if you are a PIO.

You can repatriate –

sale proceeds of immovable property acquired in India out of your repatriable funds, without any lock-in period.

refund of application/earnest money/purchase consideration made by house-building agencies/seller on account of non-

allotment of flats/plots/cancellation of booking/deals for purchase of residential/commercial properties, togetherwith interest,
 net of taxes, provided original payment is made out of NRE/FCNR(B) account/inward remittances.

N.B. - All persons, whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, China, Iran, Nepal, or Bhutan, require prior permission of Reserve Bank for acquiring or transferring any
immovable property in India.

On return to India

If you decide to return to India :

You may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside
India, if such currency, security or property was acquired, held or owned when you were resident outside India.

You may open, hold and maintain with an authorised dealer in India a Resident Foreign Currency (RFC) Account to keep your
foreign currency assets. Assets held outside India at the time of return can be credited to RFC account. The funds in RFC
accounts are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment
outside India.

N.B. All the above facilities are available under general permission, i.e., foreign exchange can be availed of from authorised dealers and
does not require Reserve Bank’s approval.

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