Q. 1 Who is a non-resident Indian (NRI)?

Ans. An Indian Citizen who stays abroad for employment/carrying on business or

vocation outside India or stays abroad under circumstances indicating an intention for an
uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organisations
and officials deputed abroad by Central/State Governments and Public Sector
undertakings on temporary assignments are also treated as non-residents). Non-resident
foreign citizens of Indian Origin are treated on par with non-resident Indian citizens
(NRIs).

Q. 2 Who is a person of Indian Origin?

Ans. A. For the purposes of availing of the facilities of opening and maintenance of bank
accounts and investment in shares/securities in India
A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of
Indian origin, if,
(i) he, at any time, held an Indian passport, or
(ii) he or either of his parents or any of his grand parents was citizen of India by virtue of
the Constitution of India or Citizenship Act, 1955 (57 of 1955).
Note: A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of
a person of Indian origin is also treated as a person of Indian origin for the above
purposes provided the bank accounts are opened or investments in shares / securities in
India are made by such persons only jointly with their NRI spouses.

B. For investments in immovable properties

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri
Lanka, or Nepal), is deemed to be of Indian origin if,
(i) he held an Indian passport at any time, or
(ii) he or his father or paternal grand-father was a citizen of India by virtue of the
Constitution of India or the Citizenship Act, 1955 (57 of 1955).

Q. 3 What is an OCB?
Ans. Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals
of Indian nationality or origin resident outside India and include overseas companies,
partnership firms, societies and other corporate bodies which are owned, directly or
indirectly, to the extent of atleast 60% by individuals of Indian nationality or origin
resident outside India as also overseas trusts in which atleast 60% of the beneficial
interest is irrevocably held by such persons. Such ownership interest should be actually
held by them and not in the capacity as nominees. The various facilities granted to NRIs
are also available with certain exceptions to OCBs so long as the ownership/beneficial
interest held in them by NRIs continues to be atleast 60%.

Q. 4 Are OCBs required to produce any certificate regarding ownership/beneficial

interest in them by NRIs?
Ans. Yes. In order to establish that the ownership/beneficial interest in any OCB held by
NRIs is not less than 60%, the concerned body/trust is required to furnish a certificate
from an overseas auditor/chartered accountant/certified public accountant in form OAC
where the ownership/beneficial interest is directly held by NRIs, and in form OAC 1
where it is held indirectly by NRIs and further that such ownership interest is actually
held by them and not in the capacity as nominees.

Q. 5 What are the various facilities available to NRIs/OCBs?

Ans. NRIs/OCBs are granted the following facilities : 1. Maintenance of bank accounts in
India. 2. Investments in securities/shares of, and deposits with, Indian firms/companies.
3. Investments in immovable properties in India. Details of these facilities are given in
Chapters II, III and IV.

BANK ACCOUNTS
Q. 6 Can accounts be maintained by NRIs with any bank in India?
Ans. Banks holding authorised dealers' licences (i.e. banks authorised to deal in foreign
exchange) or banks specifically authorised in this behalf by Reserve Bank can only
maintain accounts in the names of NRIs. Certain co-operative/commercial banks
(referred to as authorised banks) have been specifically permitted to maintain accounts of
NRIs expressed in rupees even though they are not authorised dealers.

Q. 7 Are NRIs permitted to maintain accounts in rupees and in foreign currency?

Ans. Yes. Accounts can be maintained by NRIs in rupees as well as in foreign currency.
Accounts in foreign currencies can, however, be maintained with authorised dealers only.

Q.8 Can NRIs maintain current / savings / fixed deposit rupee accounts with
authorised dealers/authorised banks in India?
Ans. NRO and NRE accounts can be maintained in current/savings/fixed deposits form
while NRNR account can be only in fixed term deposits.

Q.9 What are the different types of rupee accounts permitted to be maintained?
Ans. Three types of rupee accounts viz. Non-resident (External) Rupee Accounts (NRE
accounts), Ordinary Non-resident Rupee Accounts (NRO accounts) and Non-resident
(Non-repatriable) Rupee deposit accounts (NRNR) are permitted to be maintained.

Q.10 Can proceeds of foreign currency notes/travellers cheques be credited to NRE

accounts without any restriction?
Ans. Authorised dealers have been permitted to credit the proceeds of foreign currency
notes/travellers cheques brought by the account holder from abroad during his visit to
India provided they are tendered in person. Where the amount of foreign currency notes
tendered exceeds U.S.$ 2,500 or its equivalent or the total amount tendered i.e. currency
notes and travellers cheques, are in excess of U.S.$ 10,000 or its equivalent, it should
have been declared to the Customs on the Currency Declaration Form (CDF) at the time
of the account holder's arrival into India. Further, in the case of travellers cheques, they
should be presented by the account holder himself and discharged by him in the presence
of the official of the concerned bank.
Q.11 Can NRE accounts be opened by the power of attorney holder in India on
behalf of a non-resident?
Ans. No.

Q.12 Can resident Power of Attorney holder operate on the NRE accounts?
Ans. Yes, but only for local payments to be made on behalf of the account holder. In
cases where the account holder or a bank designated by him has been granted permission
by Reserve Bank to make investments in India, the Power of Attorney holder (POA) is
permitted to operate the account to facilitate such investments. POA holders cannot,
however, make gifts from NRE accounts.

Q. 13 Can Power of Attorney holder credit proceeds of foreign currency notes/bank

notes and travellers cheques to the NRE accounts?
Ans. No.

Q. 14 What is the distinction between NRE account and NRO account?

Ans. Balances held in NRE accounts can be repatriated abroad freely, whereas funds in
NRO account cannot be remitted abroad but used only for local payments in rupees.
Consequently, funds remitted from abroad or local funds which can otherwise be remitted
abroad to the account holder can only be credited to NRE accounts. Funds which do not
qualify, under the Exchange Control regulations, for remittance outside India are required
to be credited to NRO accounts.

Q. 15 Can NRO/NRE accounts be maintained by NRIs jointly with residents?

Ans. NRO accounts can be held jointly with residents. However, NRE accounts cannot be
held jointly with residents.

Q. 16 What is the rate of interest payable on such accounts?

Ans. In the case of NRE accounts, the interest rates for deposits up to one year should not
exceed Bank Rate minus 2 percentage points. Interest rates on term deposits of over one
year are determined by the banks themselves. Interest rates on NRO accounts are fixed as
in the case of domestic deposits.

Q. 17 Are debits and credits to NRO accounts allowed freely by banks maintaining
the accounts?
Ans. Yes. Debits for local payments are allowed freely. Funds representing legitimate
dues of the account holder or proceeds of remittances received from abroad through
banking channels are permitted to be credited freely.

Q. 18 What are the admissible debits and credits to NRE accounts?

Ans. Debits for local payments/investments are allowed freely. Credits to an account, of
funds emanating from a local source would be permissible only if the funds are of a
repatriable nature i.e. are eligible to be remitted abroad.

Q. 19 Can funds in NRE/NRO accounts be repatriated outside India?

Ans. Funds held in NRE accounts can be repatriated abroad freely. Funds held in NRO
accounts which would generally be from a local source cannot be repatriated outside
India. Interest earned on funds in NRO accounts during the financial year 1994-95 and
onwards can, however, be remitted to the extent permitted by Reserve Bank (See
Answers to Questions 59 and 60).

Q. 20 Can funds in NRE/NRO accounts be utilised for payment of air fare

to/from/in India of the account holder and/or his dependents?
Ans. Yes. Banks maintaining the accounts have been authorised to permit such payments.
Airlines/shipping companies and their agents have also been permitted to accept
payments in rupees from the funds held in NRO/NRE accounts for the purpose.

Q. 21 Are temporary overdrawings permitted in NRO Savings Bank accounts?

Ans. Yes. Authorised dealers may allow such overdrawings up to Rs. 1,000/- subject to
the condition that the overdrawings together with the interest payable thereon are cleared
within a period of two weeks.

Q. 22 Are NRO/NRE/NRNR account holders eligible for loans/overdrafts against

their fixed deposits?
Ans. Yes, except for the purpose of relending, carrying on agricultural/plantation
activities or for investment in real estate business. Loans against NRE fixed deposits can,
however, be utilised for investments in India on non-repatriation basis, in certain
specified areas and for acquisition of flats/houses subject to prescribed conditions.

Q. 23 What are the rates of interest charged on such loans?

Ans. While interest on loans up to Rs.2 lakhs against NRO/NRE fixed deposit accounts
will be charged two percent above the rates paid by banks for the concerned deposits,
repayment of loans will have to be made either by adjustment of the deposits or by fresh
remittances from abroad. Banks are free to charge interest on loans above Rs.2 lakhs.

Q. 24 Can loans raised against NRE fixed deposits be repaid out of funds in NRO
accounts?
Ans. The loans raised against NRE deposits can be repaid out of NRO funds but in such
cases, the interest would be charged at commercial rate as in force from time to time.

Q. 25 Is nomination allowed in NRO/NRE accounts?

Ans. Yes.

Q. 26 Is repatriation of funds belonging to non-resident nominees permitted?

Ans. Funds held in NRO account will be allowed to be credited to the non-resident
nominee's NRO account only and no repatriation is permitted. Repatriation of funds from
the deceased person's NRE account will be permitted by authorised dealers.

Q. 27 Is transfer of funds between NRE accounts maintained by two different

account holders permitted?
Ans. Yes. Authorised dealers can permit transfer of funds from the NRE account of one
person to the NRE account of another person for bona fide personal purposes. Transfers
by way of gifts are permitted subject to payment of gift tax.

Q. 28 At what rates are remittances to India by NRIs for credit to NRE/NRO/NRNR

accounts converted into rupees?
Ans. Remittances made for credit to rupee accounts (i.e. NRE/NRO/NRNR accounts)
maintained by NRIs are converted at market rate.

Q. 29 Is there any scheme under which non-residents other than NRIs can also keep
rupee deposits with banks in India?
Ans. Yes, NRIs and other non-residents can maintain NRO rupee accounts as well as
keep deposits with banks in India under NRNR Rupee Deposit Scheme.

Q. 30 How should an account under the Non-Resident Non-repatriable (NRNR)

Rupee Deposit Scheme be opened?
Ans. Such an account can be opened with an authorised dealer in India by remitting funds
from abroad in any convertible foreign currency. Under the NRNR Scheme, deposits
designated in rupees can be kept for periods ranging from 6 months to 3 years. NRIs can
also open such accounts by transferring funds from their existing NRE/FCNR accounts.
No penal interest is chargeable for premature withdrawal of NRE/FCNR deposits for the
purpose of making investment in the scheme if the deposit is to be kept with the same
authorised dealer.

Q. 31 What is the rate of interest payable on NRNR deposits?

Ans. Banks are free to determine the interest rates under this Scheme.

Q. 32 Can the principal or the interest accrued on NRNR deposits be repatriated

outside India at any time?
Ans. The principal amount of the deposit is not eligible for repatriation. Interest earned
up to 30th September 1994 is also not eligible for repatriation. Interest earned for the
period beginning 1st October 1994 is, however, eligible for repatriation or can be utilised
for opening fresh NRE/FCNR deposits, or can be credited to existing NRE accounts.

Q. 33 Can the principal together with the interest accrued on NRNR deposits be
renewed, on maturity?
Ans. Only the principal amount of deposit could be renewed under the scheme upto 30th
September 1994. However, since interest accrued for the period from 1st October 1994 is
repatriable, the principal amount together with interest accrued for the period from 1st
October 1994 can be renewed under the scheme.

Q. 34 Can loans/overdrafts be availed of against the security of these deposits?

Ans. Yes. Authorised dealers are permitted to grant loans/overdrafts for purposes other
than investment.

Q.34A What is the status of NRO/NRE accounts on the return of the account holder
to India?
Ans. Banks have been advised to redesignate such accounts as resident accounts on return
of the account holder to India.

Q.34B Does the account holder suffer any loss of interest on such redesignation of
accounts?
Ans. No Banks have been advised to continue to pay interest at the contracted rate till the
maturity of the deposit if the deposit is held for the full term even after conversion into
resident rupee account.

Q. 35 Can accounts be maintained by NRIs in foreign currencies?

Ans. Yes. Accounts in foreign currencies (FCNR accounts) can be maintained by NRIs
with authorised dealers in India.

Q. 36 What are the foreign currencies in which such accounts can be maintained?
Ans. FCNR Accounts can be maintained in Pound Sterling, U.S. Dollar, Deutsche Mark
and Japanese Yen.

Q. 37 Are FCNR accounts permitted to be maintained in the form of current/savings

accounts?
Ans. No. FCNR accounts can be maintained only in the form of 'term deposits', i.e. a
deposit kept for fixed periods ranging from 6 months to 3 years.

Q. 38 What is the maximum period of maturity for a FCNR term deposit account?
Ans. The maximum period of maturity is three years.

Q. 39 Is premature withdrawal of the FCNR term deposit allowed?

Ans. Yes. However, this is subject to the levy of a penalty.

Q. 40 What is the penalty for premature withdrawal of a FCNR deposit?

Ans. Interest in such cases is paid at one per cent below the interest rate payable for the
period for which the deposit has actually run. Interest on deposits is, however, payable
only if they are kept for a minimum period of six months.

Q. 41 If a FCNR deposit of 6 months maturity is withdrawn prematurely, would any

interest be payable?
Ans. No. While the premature withdrawal would be allowed, no interest would be
payable. For such premature withdrawals the bank may levy penalty as per their
discretion.

Q. 42 Are the interest rates on FCNR deposits liable for periodical revision?
Ans. Yes. The Banks have been permitted to offer interest on such deposits at rates not
more than the LIBOR prevailing on the last working day of the previous week for the
relevant maturity and currency. Subject to this guideline, banks can offer either fixed or
floating rate of interest on such deposits.
Q. 43 What about debits to FCNR accounts for local payments?
Ans. Debits for local payments in rupees are allowed freely. As regards debits for
investments in India, please see Chapters III and IV.

Q. 44 Are funds in FCNR accounts freely repatriable abroad?

Ans. Yes. Authorised dealers maintaining these accounts would allow repatriation abroad
of these funds.

Q.44A Can FCNR deposits be held jointly with residents?

Ans. No.

Q. 45 Is nomination allowed in FCNR accounts?

Ans. Yes.

Q. 46 Is repatriation of FCNR funds to non-resident nominees permitted?

Ans. Yes. (Also see answer to Q. 26 for repatriation of funds in NRE account)

Q.46A What is the status of FCNR accounts on the return of the account holder to
India?
Ans. Banks would treat the deposits held in FCNR accounts as resident deposits but
would continue to pay interest at the contracted rate till maturity of the deposit.

Q. 47 Can NRIs invest their funds in Government securities or Units of Unit Trust
of India (UTI)?
Ans. Yes. NRIs are freely permitted to invest their funds in Government securities or
Units of UTI through authorised dealers. Units can also be purchased directly from UTI.

Q. 48 Can NRIs make investments in National Savings Certificates issued by Post

Offices in India?
Ans. Yes. Investments in National Savings Certificates can be made by NRIs subject to
the terms and conditions applicable to the sale/issue of such certificates. However, NRIs
are not permitted to invest in bearer securities like Indira Vikas Patra/Kisan Vikas Patra.

Q. 49 Can Government securities/units be freely transferred or sold?

Ans. Yes, provided the transfers/sales are arranged through an authorised dealer. Units
can, however, be repurchased directly by UTI.

Q. 50 Are sale/maturity proceeds of Government securities/Units/National Savings

Certificates allowed to be repatriated abroad?
Ans. If such securities were purhased out of funds remitted from abroad or out of
NRE/FCNR accounts, sale/maturity proceeds can be repatriated. Sale/maturity proceeds
of securities purchased out of funds in NRO accounts can only be credited to NRO
accounts and cannot be remitted abroad. Interest earned during the financial year 1994-95
and onwards can, however, be remitted to the extent permitted by Reserve Bank (See
Answers to Questions 59 and 60).
NRIs are permitted to make direct investments in proprietary/partnership concerns in
India as also in shares/debentures of Indian companies. They are also permitted to make
portfolio investments i.e. purchase of shares/debentures of Indian companies through
stock exchange/s in India. These facilities are granted both on repatriation and non-
repatriation basis.

Direct Investment without Repatriation benefits

Q. 51 Is permission of Reserve Bank required for NRIs to invest in
proprietary/partnership concerns on non-repatriation basis?
Ans No. Reserve Bank has granted general permission to non-resident individuals of
Indian nationality/origin to invest by way of capital contribution in any proprietary or
partnership concern in India on non-repatriation basis provided the investee concern is
not engaged in any agricultural/plantation activity or real estate business. This facility is,
however, not available to OCBs.

Q. 52 Is permission of Reserve Bank required for making investments in new issues

of Indian companies on non-repatriation basis?
Ans. No. Indian companies have been granted general permission to accept investments
on non-repatriation basis, in shares/convertible debentures by way of new/rights/bonus
issue provided the investee company is not engaged in agricultural/plantation activity or
real estate business (excluding real estate development i.e. development of property and
construction of house) or chit fund or is not a Nidhi company.

Q. 53 Are any formalities required to be completed by NRIs for getting the benefit
of the above general permission?
Ans. No. However, the firms/companies concerned are required to file declarations with
Reserve Bank in form DIN giving particulars of the investments made, within ninety days
from the date of the investment.

Q. 54 Can NRI individuals make investments in domestic public/private sector

Mutual Funds or Money Market Mutual Funds floated by commercial banks and
public/private sector financial institutions on non-repatriation basis?
Ans. Yes.

Q. 55 Can Overseas Corporate Bodies make similar investments in mutual funds on

non-repatriation basis?
Ans. OCBs can make such investments only in domestic public/private sector Mutual
Funds. They can also make investments in Money Market Mutual Funds.

Q. 56 Can NRIs make investments in non-convertible debentures of Indian

companies?
Ans. Yes. Applications for necessary permission should be made to Reserve Bank
(Central Office) by the concerned Indian company in form ISD.

Q. 57 Can NRIs purchase existing shares/debentures of Indian companies by private

arrangement?
Ans. Yes. Reserve Bank permits NRIs, on application in form FNC 7, to purchase
shares/debentures of existing Indian companies on non-repatriation basis. An undertaking
about non-repatriation is to be given in form NRU.

Q. 58 Is it necessary for a resident, holding securities in Indian companies, to secure

any approval from Reserve Bank on his becoming a non-resident for holding such
securities?
Ans. No. Reserve Bank has granted general permission to companies in India to enter the
overseas addresses of the shareholders in their books in such cases provided the
companies obtain undertakings from the holders that they will not seek repatriation of
any income or sale proceeds of the security.

Q. 59 Is income/interest earned on investments/deposits held in India by NRIs on

non-repatriation basis allowed to be repatriated?
Ans. Yes. Income/interest accruing during the financial year 1994-95 and onwards on
bank deposits and investments held by NRIs with non-repatriation benefits will be
eligible for repatriation as under:
(a) Up to U.S. $ 1,000 or its equivalent in full and one-third of the balance income earned
during the financial year 1994-95;
(b) Up to U.S. $ 1,000 or its equivalent in full and two-third of the balance income earned
during the financial year 1995-96;
(c) The entire income earned during the financial year 1996-97 and onwards.
Note : The investment/principal amount of deposits made/held on non-repatriation basis
will, however, not be allowed to be repatriated abroad.

Q. 60 What is the procedure to be followed for seeking repatriation in such cases?

Ans. NRIs should designate a branch of an authorised dealer through whom the
remittance of income is to be made and make an application in form RCI to the
designated branch giving details of incomes earned during the previous financial year
alongwith a Chartered Accountant's Certificate. The designated branch will allow the
remittance of net amount (i.e. after payment of tax) or credit it to NRE/FCNR account of
the applicant.

Direct Investment with Repatriation benefits

Q. 61 What are the schemes available to NRIs for direct investments in India with
repatriation benefits?
Ans. NRIs can make investments in new issues of shares/convertible debentures of Indian
companies under direct investment schemes such as 24% scheme/40% scheme/100%
scheme. They can also invest in the schemes of domestic Mutual Funds floated by
public/private sector institutions/companies and bonds issued by public sector
undertakings. Non-resident investors are not required to apply for permission to invest
but the company concerned will have to obtain permission from Reserve Bank.

Q. 62 What is 24% Scheme?

Ans. Under the 24% Scheme, Indian companies engaged or proposing to engage in any
activity including finance, hire purchase, leasing, trading or other services, establishment
of schools/colleges, etc. (except agricultural/plantation activities) are allowed by Reserve
Bank to issue shares/debentures to NRIs with repatriation benefits to the extent of 24% of
the new issue.

Q. 63 What is 40% Scheme?

Ans. Under the 40% Scheme, Indian companies engaged or proposing to engage in the
following activities are allowed by Reserve Bank to issue shares/debentures to NRIs with
repatriation benefits to the extent of 40% of the new issue.
(i) Industrial and manufacturing units
(ii) Hotels with 3, 4 or 5 star category
(iii) Hospitals and diagnostic centres
(iv) Shipping companies
(v) Development of computer software
(vi) Oil exploration services

Q. 64 Is remittance of interest/dividend to NRI investors freely allowed under the

24%/40% Scheme?
Ans. Yes. There is no ceiling or restriction on the amount of remittable dividend.
Remittance of interest/dividend to NRI investors will be allowed by authorised dealers
under the powers delegated to them.

Q. 65 What are the specified industries under the 100% Scheme?

Ans. Under 100% Scheme, NRIs are permitted to invest in high priority industries listed
in Annexure III to the Statement on Industrial Policy dated 24th July 1991 of the
Government of India up to 100% of the new issue.

Q. 66 Is dividend/interest earned in respect of investments made under the 100%

Scheme freely remittable to the NRIs abroad?
Ans. Dividend/interest can be remitted freely except in the case of consumer goods
industries where the outflow on account of dividend is required to be balanced by export
earnings of the company either in the year of declaration of dividend or in the years prior
to the declaration of dividend. This requirement is enforced for a period of seven years
from the commencement of commercial production.

Q. 67 How does an NRI obtain permission of Reserve Bank for investment under
the 24% or 40% or 100% Scheme?
Ans. The NRI investor need not apply to Reserve Bank. Application for necessary
permission under the schemes should be made by the Indian company/firm to the Central
Office of Reserve Bank in Mumbai in form ISD/ISD(R).

Q. 68 Besides the 24%, 40% and 100% Schemes is there any other scheme for
investment by NRIs in the equity of Indian companies?
Ans. Yes. NRIs are permitted to undertake revival of sick industrial units by making bulk
investment in them to the extent of 100 per cent either by way of purchase of existing
equity shares or in the form of subscription to new equity issues.
Q. 69 Is the capital brought into India for revival of a sick industrial unit allowed to
be repatriated?
Ans. Yes.

Q. 70 How can an NRI obtain permission of Reserve Bank for investment in a sick
industrial unit?
Ans. Application for necessary permission should be made by the Indian company to the
Central Office of Reserve Bank in Mumbai in form RSU.

Q. 71 Under the existing Industrial Policy, investment by foreign collaborators upto

50%/51%/74% of the equity is allowed by Reserve Bank on repatriation basis in
certain high priority industries. Can NRIs take up the balance 50%/49%/26%
equity in such cases on repatriation basis?
Ans. Yes.

Q. 72 Can NRIs make investments in companies engaged in real estate development

in India?
Ans. Yes. Investment upto 100% in the new issue of equity shares/convertible debentures
of Indian companies engaged in the following areas is allowed -
i) Development of serviced plots and construction of built up residential premises;
ii) Real estate covering construction of residential and commercial premises including
business centres and offices;
iii) Development of township;
iv) City and region level urban infrastructure facilities including roads and bridges;
v) Manufacture of building material;
vi) Financing of housing development.

Q. 73 What is the procedure for obtaining Reserve Bank permission in this regard?
Ans. Applications for the purpose should be made by the concerned Indian company to
the Central Office of Reserve Bank in Mumbai in form ISD(R).

Q. 74 Will repatriation of the origional investment and/or dividend income be freely

permitted?
Ans. Yes. Repatriation of original investment will be permitted after a lock-in period of
three years from the date of issue of the equity shares/convertible debentures. In addition,
OCBs will be permitted to repatriate net profit (upto 16 per cent) arising from the sale of
such investment after the lock-in-period of three years. Annual dividend/interest on
equity shares/debentures can, however, be freely remitted subject to payment of tax.

Q. 75 Are investments in Air Taxi operations permitted to be made by NRIs?

Ans. Yes. Investments upto 100% equity participation for carrying on Air Taxi operations
are permitted in terms of the guidelines issued by the Director General of Civil Aviation
for Air Taxi operations. Applications for the purpose should be made to Reserve Bank
(Central Office) in form ISD(R) by the concerned Indian company.
Q. 76 Are there any restrictions on repatriation of the investment made under this
scheme or income earned thereon?
Ans. No. However, repatriation of the investment and/or remittance of dividend will be
permitted only after the expiry of five years of operation and only out of accumulated net
foreign exchange earnings.

Q. 77 Can NRIs invest in non-convertible debentures on repatriation basis?

Ans. Yes. Application for necessary permission should be made to Reserve Bank (Central
Office) by the concerned Indian company in form ISD(R).

Q. 78 What is the procedure to be followed for making investment in the schemes of

domestic Mutual Funds or public sector bonds with repatriation benefits?
Ans. The concerned Fund/Public Sector Undertaking should obtain necessary permission
from Reserve Bank for issue of units/bonds to NRIs. Applications for the purpose are
required to be made to the Central Office of Reserve Bank in form ISD(R).

Q. 79 Can NRIs invest in 100% Export Oriented Units on repatriation basis?

Ans. Yes. NRIs will be permitted to invest up to 100% in 100% Export Oriented Units
subject to obtaining approval from the Government of India, Ministry of Industries (SIA)
for setting up the EOU. In the case of units located in Export Processing Zones, approval
from the Development Commissioner of the concerned zone is required to be obtained.
Thereafter an application should be made to the concerned regional office of Reserve
Bank in form ISD alongwith copy of Government approval for necessary clearance under
FERA 1973.

Q. 80 Can NRIs acquire shares disinvested by Government of India in Public Sector

Enterprises (PSEs) by inviting sealed tenders?
Ans. Yes. Reserve Bank has granted general permission to NRIs to acquire shares of
PSEs on their bids being successful provided the holding of a single NRI investor does
not exceed one per cent of the paid up capital of the PSE concerned, the purchase
consideration/bid money is paid by way of remittance from abroad or by debit to his
NRE/FCNR accounts.

Q. 81 What is the procedure for issue of rights entitlement to NRIs?

Ans. The concerned company should approach Reserve Bank for issue of rights
entitlement to NRIs in the prescribed form if on repatriation basis. However, rights
entitlement on non-repatriation basis would be covered by the general permission (Please
see Answer to Question No. 52 and 53).

Q. 82 What is the procedure required to be followed by NRIs for renunciation of

rights entitlement?
Ans. NRIs can make an application to Reserve Bank by a letter detailing therein the folio
number of the shares held and the manner in which the rights are being sold.

Q. 83 What is the procedure for issue of bonus shares?

Ans. The concerned Indian company should approach Reserve Bank for issue of bonus
shares to NRIs if the original investment is on repatriation basis. Issue of bonus shares in
respect of investment on non-repatriation basis is covered by general permission (Please
also see Answer to Question No. 52).

Q. 84 Can NRIs obtain loans abroad against the collateral of shares/debentures of

Indian companies?
Ans. Yes. Authorised dealer have been permitted to grant loans/overdrafts abroad to
NRIs through their overseas branches and correspondents against collateral of the
shares/debentures of Indian companies held by them, provided the concerned
shares/debentures were acquired on repatriation basis.

Q. 85 Can sale proceeds of the shares/debentures be remitted abroad for liquidation

of outstandings against such loans/overdrafts?
Ans. Yes, subject to payment of Income tax, Capital Gains tax etc. payable, if any.

Portfolio Investment Scheme

Q. 86 What is the Portfolio Investment Scheme?
Ans. Under this scheme, NRIs are permitted to acquire shares/debentures of Indian
companies or units of domestic Mutual Funds through the stock exchange/s in India.

Q. 87 What is the procedure for making applications?

Ans. The application is to be submitted to Reserve Bank through a designated branch of a
bank in India in one of the prescribed forms, i.e. NRC/NRI/RPC/RPI.

Q. 88 What is a designated branch?

Ans. Reserve Bank has authorised a few branches of each bank to conduct the business
under Portfolio Investment Scheme on behalf of NRIs. These branches are the main
branches of major commercial banks located close to the stock exchange/s. NRIs will
have to route their applications through any of the designated bank branches who have
authorisation from Reserve Bank.

Q. 89 Whether NRI can apply through more than one designated branch?
Ans. No. Each NRI has to select one branch for this purpose for investment on
repatriation/non-repatriation basis.

Q. 90 Is it necessary to maintain a bank account with the designated branch through

whom the application is made?
Ans. It is advisable to maintain a bank account with the designated branch for
administrative convenience.

Q. 91What is the validity period of Reserve Bank approval for the purchase of
shares/debentures of Indian companies or units of domestic Mutual Funds?
Ans. Reserve Bank approval is valid for a period of five years from the date of issue. This
can be renewed further by making a request by means of a simple letter.
Q. 92 Is there any ceiling on the investment under the Portfolio Investment Scheme?

Ans. There is an overall ceiling of 5% of paid-up equity share capital of the

company/paid-up value of each series of convertible debentures for purchase by
NRIs/OCBs. The overall ceiling can be raised to 30% if the company concerned passes a
special resolution to that effect in its general body meeting and a Board resolution.
Individually, NRIs/OCBs can make investment upto 1% of the paid-up equity share
capital/each series of convertible debentures. However, there is no ceiling on investment
in domestic Mutual Funds.

Company Deposits
Q. 93 Can NRIs keep deposits with companies in India with repatriation benefits?
Ans. Yes. NRIs are permitted to keep deposits with public limited companies in India for
a minimum period of three years subject to certain ceilings/conditions. Application for
the purpose is required to be made by the company receiving the deposits through an
authorised dealer.

Q. 94 Do NRIs need permission of Reserve Bank for placing funds in fixed deposits
with firms/companies on non-repatriation basis?
Ans. Yes. Permission for placement of funds in fixed deposits with firms/companies in
India is granted by Reserve Bank on application by the depositor or the deposit accepting
firm/company, on non-repatriation basis, subject to certain ceilings/conditions.

Q. 95 Are NRIs permitted to invest in Commercial Paper (CP) issued by Indian

companies?
Ans. Yes. General permission has been granted by Reserve Bank to Indian companies to
issue CP to NRI individuals subject to the conditions that the amount invested will not be
repatriated outside India and the CP will not be transferable

Sale/Transfer of Shares/Securities
Q. 96 Is permission of Reserve Bank required for sale/transfer of Government
securities/units?
Ans. No. Authorised dealers have been permitted to undertake sale of Government
securities/units on behalf of NRIs without prior approval of Reserve Bank. Sale/maturity
proceeds can be remitted abroad if the original investment was made out of funds
remitted from abroad or funds in NRE/FCNR accounts. Otherwise, they will have to be
credited to NRO account of the holder.

Q. 97 Is permission of Reserve Bank required by NRIs for sale/transfer of

shares/debentures of Indian companies to other NRIs?
Ans. No. Transfer of shares/debentures of Indian companies by NRIs to other non-
residents does not require permission of Reserve Bank. However, the transferee NRI
would need permission for purchase of such shares for which an application is required to
be made to Reserve Bank in form FNC 7.
Q. 98 Can NRIs transfer/sell their shares/debentures/bonds held on non-
repatriation basis to residents freely?
Ans. Yes. General exemption has been granted by Reserve Bank for transfer/sale of
shares/debentures/bonds by NRIs/OCBs through stock exchanges if such transfers are
made in favour of an Indian citizen or a person of Indian origin or a company
incorporated in India and sale proceeds thereof are credited to NRO account.

Q. 99 What is the procedure for sale/transfer of shares/debentures/bonds held by

NRIs with repatriation benefits?
Ans. In the case of shares/debentures/bonds acquired by NRIs through stock exchanges
under the Portfolio Investment Scheme, general exemption has been granted for transfer
through stock exchanges provided the sale is arranged through the same designated
branch through whom they were purchased. In other cases, applications for necessary
permission is required to be made to Reserve Bank in form TS 4.

Q. 100 What is the procedure to be followed by NRIs for sale/transfer of

shares/debentures to residents by private arrangements?
Ans. NRIs are required to submit application in form TS 1 to Reserve Bank for sale of
shares/debentures by private arrangements.

Q. 101 Can shares/debentures be given away as gifts to relatives?

Ans. Yes. Reserve Bank has granted general permission to NRIs to transfer, by way of
gift, shares, bonds and debentures of Indian companies held by them with Reserve Bank's
permission to their resident close relative/s.

Section 4: INVESTMENT IN IMMOVABLE PROPERTY

Q. 102 Do non-resident Indian citizens require permission of Reserve Bank to acquire
residential/commercial property in India?
Ans. No.

Q. 103 Do foreign citizens of Indian origin require permission of Reserve Bank to

purchase immovable property in India for their residential use?
Ans. Yes. However, Reserve Bank has granted general permission to foreign citizens of
Indian origin, whether resident in India or abroad, to purchase immovable property in
India for their bona fide residential purpose. They are, therefore, not required to obtain
separate permission of Reserve Bank.

Q. 104 In what manner the purchase consideration for the residential immovable
property should be paid by foreign citizens of Indian origin under the general
permission?
Ans. The purchase consideration should be met either out of inward remittances in
foreign exchange through normal banking channels or out of funds from NRE/FCNR
accounts maintained with banks in India.

Q. 105 What are the formalities required to be completed by foreign citizens of

Indian origin for purchasing residential immovable property in India under the
general permission?
Ans. They are required to file a declaration in form IPI 7 with the Central Office of
Reserve Bank at Mumbai within a period of 90 days from the date of purchase of
immovable property or final payment of purchase consideration alongwith a certified
copy of the document evidencing the transaction and bank certificate regarding the
consideration paid.

Q. 106 Can such property be sold without the permission of Reserve Bank?
Ans. Yes. Reserve Bank has granted general permission for sale of such property.
However, where the property is purchased by another foreign citizen of Indian origin,
funds towards the purchase consideration should either be remitted to India or paid out of
balances in NRE/FCNR accounts.

Q. 107 Can sale proceeds of such property if and when sold be remitted out of
India?
Ans. In respect of residential properties purchased on or after 26th May 1993, Reserve
Bank considers applications for repatriation of sale proceeds up to the consideration
amount remitted in foreign exchange for the acquisition of the property for two such
properties. The balance amount of sale proceeds if any or sale proceeds in respect of
properties purchased prior to 26th May 1993, will have to be credited to the oridinary
non-resident rupee account of the owner of the property.

Q. 108 Are any conditions required to be fulfilled if repatriation of sale proceeds is

desired?
Ans. Applications for repatriation of sale proceeds are considered provided the sale takes
place after three years from the date of final purchase deed or from the date of payment
of final instalment of consideration amount, whichever is later.

Q. 109 What is the procedure for seeking such repatriation?

Ans. Applications for necessary permission for remittance of sale proceeds should be
made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of
the sale of the property.

Q. 110 Can foreign citizens of Indian origin acquire or dispose of residential

property by way of gift?
Ans. Yes. Reserve Bank has granted general permission to foreign citizens of Indian
origin to acquire or dispose of properties up to two houses by way of gift from or to a
relative who may be an Indian citizen or a person of Indian origin whether resident in
India or not, provided gift tax has been paid.

Q. 111 Can foreign citizens of Indian origin acquire commercial properties in India?

Ans. Yes. Under the general permission granted by Reserve Bank properties other than
agricultural land/farm house/plantation property can be acquired by foreign citizens of
Indian origin provided the purchase consideration is met either out of inward remittances
in foreign exchange through normal banking channels or out of funds from the
purchasers' NRE/FCNR accounts maintained with banks in India and a declaration is
submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days
from the date of purchase of the property/final payment of purchase consideration.

Q. 112 Can they dispose of such properties?

Ans. Yes.

Q. 113 Can sale proceeds of such property be remitted out of India?

Ans. Yes. Repatriation of original investment in respect of properties purchased by
foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted
up to the consideration amount originally remitted from abroad provided the property is
sold after a period of three years from the date of the final purchase deed or from the date
of payment of final instalment of consideration amount, whichever is later. Applications
for the purpose are required to be made to the Central Office of Reserve Bank within 90
days of the sale of property in form IPI 8.

Q. 114 Can the properties (residential/commercial) be given on rent if not required

for immediate use?
Ans. Yes. Reserve Bank has granted general permission for letting out any immovable
property in India. The rental income or proceeds of any investment of such income has to
be credited to NRO account.

Q.115 Can NRIs obtain loans for acquisition of a house/flat for residential purpose
from financial institutions providing housing finance?
Ans. Reserve Bank has granted general permission to certain financial institutions
providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing
loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation
subject to certain conditions.

Q. 116 Can authorised dealer grant loans to NRIs for acquisition of a flat/house for
residential purposes?
Ans. Authorised dealers have been granted permission to grant loans to non-resident
Indian nationals for acquisition of house/flat for self-occupation on their return to India
subject to certain conditions. Repayment of the loan should be made within a period not
exceeding 15 years out of inward remittance through banking channels or out of funds
held in the investors' NRE/FCNR/NRO accounts.

Q. 117 Can Indian companies grant loans to their NRI staff?

Ans. Reserve Bank permits Indian firms/companies to grant housing loans to their
employees deputed abroad and holding Indian passport subject to certain conditions.

FACILITIES TO RETURNING INDIANS

A. Overseas Assets
Q. 118 Are Returning Indians permitted to retain their assets abroad even after
return to India?
Ans. Effective 17th July 1992, the Central Government has granted exemption from the
surrender requirement to persons who return to India after a continuous stay abroad of
one year and above in respect of funds/assets acquired by them abroad otherwise than in
contravention of FERA 1973 or out of foreign exchange earned through employment,
business or vocation outside India taken up or commenced while they were resident
outside India. Persons satisfying the conditions of general exemption can retain their
foreign currency accounts with banks abroad and/or hold, transfer or dispose of their
other foreign currency assets such as shares, securities or investments in business, etc.
and immovable properties.

Q. 119 Are they required to obtain any permission from Reserve Bank for holding
these assets?
Ans. No.

Q. 120 Do they enjoy any freedom in regard to utilisation of these overseas assets?
Ans. Yes. They would enjoy complete freedom for utilisation of these assets as well as
income earned or sale proceeds received subsequently.

Q. 121 Can they bring back the overseas assets to India and hold them with separate
identity?
Ans. Yes. They can repatriate these assets to India and hold them separately in India with
authorised dealers under the Resident Foreign Currency Accounts Scheme (See Part B
below).

Resident Foreign Currency (RFC) Accounts Scheme

Q. 122 What is the Resident Foreign Currency (RFC) Account Scheme?
Ans. This is a Scheme approved by Reserve Bank permitting persons of Indian
nationality or origin, who have returned to India on or after 18th April 1992 for
permanent settlement (Returning Indians), after being resident outside India for a
continuous period of not less than one year to open foreign currency accounts with banks
in India for holding funds brought by them to India. Persons who have returned to India
before 18th April 1992 can also open RFC account if (a) they are holding foreign
currency assets abroad with Reserve Bank's permission or (b) are in receipt of pension or
other monetary benefits from their erstwhile employers abroad.

Q. 123 Is any permission from Reserve Bank required for opening such accounts
with authorised dealers?
Ans. No.

Q. 124 In which currencies can RFC accounts be maintained?

Ans. RFC accounts can be maintained in any convertible currency.

Q. 125 What funds can be credited to RFC accounts of Returning Indians?

Ans. The entire amount of foreign exchange brought to India at the time of their return to
India for permanent settlement as well as the balances standing to the credit of their NRE
and FCNR accounts at the time of return can be credited to RFC accounts. However, the
foreign exchange brought to India in the form of foreign currency notes/bank
notes/travellers cheques should have been declared to Customs at the time of arrival on
the Currency Declaration Form (CDF) if it exceeded U.S. $ 10,000 or its equivalent. In
the case of foreign currency/bank notes, such a declaration on form CDF is compulsory if
the amount exceeds U.S. $ 2,500 or its equivalent.

Q. 126 Can income received from their overseas assets in the form of dividends etc.,
or sale proceeds of such assets be credited to RFC accounts?
Ans. Yes. The entire income from such assets or sale proceeds of such assets repatriated
to India can be credited to RFC accounts.

Q. 127 Can pension received by the account holder from abroad be credited to his
RFC account?
Ans. Yes. The entire amount of pension received from abroad can be credited to his RFC
account.

Q. 128 NRIs returning to India for permanent settlement were granted RIFEE
facility. Is this facility still available?
Ans. No. RIFEE facility has been replaced by the RFC accounts facility.

Q. 129 Can funds in RFC accounts be remitted abroad?

Ans. Yes. Funds in RFC accounts can be remitted abroad for any bona fide purpose of the
account holder or his dependents including exchange required for travel and other
personal purposes and investments.

Q. 130 Can funds in RFC accounts be utilised for local payments?

Ans. Yes. Funds in RFC accounts can be withdrawn freely for local payments in rupees.

Q. 131 Can a Returning Indian desiring to go abroad again for employment,

business or vocation transfer his funds in RFC account to NRE/FCNR account?
Ans. Yes.

Q. 132 Can persons who have returned to India after a short assignment of less than
one year open RFC accounts?
Ans. Their applications for opening such accounts would be considered by Reserve Bank.
Persons who have gone abroad for studies, training, etc. are, however, not eligible for this
facility.

C. Import of Gold by NRIs

Q. 133 Can NRIs bring gold into India?
Ans. Yes. NRIs can bring into India gold upto 10,000 grams as part of their baggage once
in six months provided they have stayed abroad for a continuous period of six months.

Q. 134 In what form can the gold be brought into India?

Ans. The gold may be brought into India in any form, including ornaments (other than
ornaments studded with stones and pearls).
Q. 135 Are NRIs required to pay customs duty on the gold brought by them into
India?
Ans. Yes. They are required to pay customs duty in any convertible foreign currency at a
rate equivalent to Rs. 220/- per 10 grams of gold.

Q. 136 How often can a NRI bring gold into India?

Ans. A NRI can bring gold into India once in six months.

Q. 137 Is it necessary that the NRI should have stayed abroad at least for a
minimum period of six months prior to his return to India for being eligible to bring
gold?
Ans. Yes.

D. Import of Silver by NRIs

Q. 138 Can NRIs bring silver into India?
Ans. Yes. NRIs can bring to India silver upto 100 kilograms as part of their personal
baggage.

Q. 139 What is the rate of duty payable on such import?

Ans. The rate of duty on import of silver is Rs. 500 per kilogram which is payable in
foreign currency.

Q. 140 Can they bring both gold and silver?

Ans. Yes.

Q. 141 Can NRIs sell gold/silver imported by them to residents?

Ans. Yes. Gold/silver so brought by NRIs can be sold to residents against payment in
rupees. Reserve Bank has granted general permission to persons resident in India to make
payment to NRIs in Indian rupees by means of a crossed cheque in India and that such
rupees are credited to Ordinary Non-resident Rupee (NRO) account of the NRI seller.

MISCELLANEOUS
Q. 142 Are any tax concessions available to NRIs on balances/deposits held in
NRE/FCNR accounts?
Ans. Yes. Income from interest on moneys standing to the credit of NRE/FCNR accounts
is exempt from Income-tax. Gifts from such accounts to close relatives are also free of
Gift-tax.

Q. 143 Are similar concessions available in respect of balances held in NRO

accounts?
Ans. No.

Q. 144 What are the tax benefits to the NRNR deposit account holders?
Ans.They enjoy the following tax benefits:
i) Income from the deposits will be free from Indian Income-tax.
ii) The deposit will also be exempt from Gift tax for one-time gifting (in the cae of NRIs
only).
iii) Exemption from Income-Tax will not be available to resident donee and those
residents, who being joint holders, become owners of the deposit as survivor of the non-
resident depositor.

Q. 145 What about tax benefits on funds held in FCNR accounts?

Ans. Tax Exemption on interest earned on deposits held in foreign currency is available
to non-residents and persons who are not ordinarily resident in India as defined under
Income-tax Act, 1961.

Q. 146 What is the approved method of sending remittances into India?

Ans. The approved method of sending remittances into India is through normal banking
channels.

Q. 147 At what rates are remittances in foreign currencies made by NRIs converted
by banks into rupees?
Ans. Such remittances will be converted by banks at the market rate of exchange.

Q. 148 Can remittances be sent into India otherwise than through the medium of a
bank in the country of residence of the remitter?
Ans. Yes. Exchange Houses in the Gulf countries have been permitted to send
remittances into India by means of DDs, MTs and TTs drawn on banks in India.

Q. 149 Can Exchange Houses draw drafts in foreign currencies?

Ans. Yes. Exchanges House can draw drafts in U.S. dollar or Pound sterling on a limited
number of branches of the drawee bank in India, if they have entered into such an
arrangement with the drawee bank.

Q. 150 Can NRIs remit funds through Exchange Houses for investment in
Government securities, National Savings Certificates and Units of Unit Trust of
India?
Ans. Yes.

Q. 151 Can NRIs remit funds through Exchange Houses for investment in
shares/debentures of Indian companies?
Ans. Yes, subject to general/specific permission of Reserve Bank for such
investment.

Q. 152 Can NRIs send drafts issued by Exchange Houses for acquisition of residential
flats in India?
Ans. Yes. NRIs can send drafts issued by Exchange Houses in favour of co-operative
housing societies/estate developers for acquisition of residential flats in India in
individual names.

Q. 153 Can NRIs remit premia on policies issued by the Life Insurance Corporation
of India by means of drafts issued by Exchange Houses in favour of the
Corporation?
Ans. Yes.

Q. 154 Can NRIs remit tution/boarding/examination fees of their children studying

in India by means of drafts issued by Exchange Houses in favour of schools,
colleges, universities, technical and educational institutions in India?
Ans. Yes.

Q. 155 Can NRIs take out of India precious stones or jewellery purchased by them during
their visit to India?
Ans. Yes. NRIs can take out of India precious stones and jewellery (both gold and non-
gold) purchased by them in India, without any limit, provided the purchase is made
against payment in any convertible foreign currency.

Q. 156 Can assets held in India by NRIs prior to their becoming non-resident be
repatriated outside India?
Ans. No.

Q. 157 Can NRIs take out of India household articles such as carpets, curios, etc.,
purchased out of funds in NRO accounts during their temporary visit to India?
Ans. Yes. RBI permits on application such requests received from NRIs up to the value
of Rs. 20,000 for such articles (other than those made of gold or silver or those banned
for exports).

Q. 158 Can NRIs settle their hotel bills in India in Indian rupees?
Ans. Yes.

NRI - Non Residenet Indians

Who is a Non-Resident?

Non-resident status, for exchange control purposes, is determined by the nature of the
stay abroad. Duration of stay in India is of limited significance. If one is employed, has a
business or pursues a vocation one is a non-resident. If one has business interests in India
and abroad and travel frequently, resident status would depend on the length of stay in
India. To be eligible for retaining Indian residency, the stay in India must be more than
one hundred and eighty two days during the course of the preceding financial year.

Who is a Non-Resident Indian?

You are considered a NRI if you are a non-resident and an Indian citizen, a non-resident
foreign citizen and of Indian origin.
Top
How do I know if I am a person of Indian origin?

If you are a foreign citizen and want to open a bank account or invest in Indian shares and
securities, you are considered to be of Indian origin if,

• You have at any time in your life held an Indian passport

• You or any one of your parents or any one of your grand parents were a citizen of
India

• You are not of Indian origin but your spouse is an Indian citizen or is a person of
Indian origin. (Your bank accounts and investments should be held jointly with
your spouse)

If you are a citizen of Pakistan or Bangladesh, you are not considered to be of Indian
origin even if you meet the above criteria.

If you want to acquire immovable property in India, you are considered to be of Indian
origin if you

• At any time, held an Indian passport or

• Your father or grandfather were a citizen of India

If you are a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or

Iran or Nepal or Bhutan, you are not considered to be of Indian origin even if you meet
the above criteria.

If I am a NRI, what happens to my status when I come to India?

You become resident in India only when you come back to India for employment, to
carry on business or pursue a vocation. You also become a resident if your stay in India is
for an indefinite period.

What if I come to India for a holiday?

You continue to be a NRI when visits to India are for short periods like holidays.

What if I come to India on a business trip?

You remain a NRI on short business visits as long as you have a job abroad.

If I am an NRI, what are the investment opportunities available to me in India?

There is a wide range of investment opportunities for NRIs like Bank Deposits,
Government securities, public sector bonds, primary share issues (both public and private
placement), secondary equity markets, convertible and non-convertible debentures,
partnership and proprietary concerns, start ups, mutual funds, company deposits,
immovable property.

If I invest in India, can I take my money back?

If your investment has been allowed on repatriation basis, you can take back abroad the
principal and the income. If your investment is on non-repatriation basis you can take
back only the income.

Do I need permission to invest in India on repatriation basis?

The Reserve Bank of India and Government of India have granted general permission for
certain kinds of investments like Bank Deposits. For the rest permission is needed.
Investments in IPOs and debentures, the issuing company will get the necessary approval.
Mutual Funds also get RBI clearanc
Who is a non-resident Indian (NRI)

An Indian Citizen who stays abroad for employment/carrying on business or vocation

outside India or stays abroad under circumstances indicating an intention for an
uncertain duration of stay abroad is a non-resident. (Persons posted in U.N.
organisations and officials deputed abroad by Central/State Governments and Public
Sector undertakings on temporary assignments are also treated as non-residents). Non-
resident foreign citizens of Indian Origin are treated on par with non-resident Indian
citizens (NRIs). ...