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NRO II
NON-RESIDENT ORDINARY RUPEE (NRO) ACCOUNT SCHEME
3 C.6 Remittance of Assets
  1. Remittance of assets by a foreign national of non-Indian origin
A citizen of a foreign state, not being a citizen of Nepal or Bhutan or a Person of Indian Origin (PIO), who has retired from an employment in India, or has inherited the assets from a person referred to in sub-section (5) of Section 6 of the FEMA; or is a widow resident outside India and has inherited assets of her deceased husband who was an Indian citizen resident in India, may remit an amount, not exceeding USD 1,000,000 (US Dollar One Million Only) per financial year on production of, documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter and an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vides Circular No.04/2009 dated 29th June 2009.
  1. Remittance of assets by an NRI/PIO
    1. NRI/PIO may remit an amount, not exceeding USD 1,000,000 per financial year, out of the balances held in NRO accounts/ sale proceeds of assets/ the assets in India acquired by him by way of inheritance/ legacy, on production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, and an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vides Circular No.10/2002 dated October 9 2002.
    2. NRI/PIO may, within the overall limit of USD 1 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 by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vides Circular No.10/2002 dated October 9 2002.
  2. Assets acquired in India
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. 3 C.7 Restrictions
  1. The remittance facility in respect of sale proceeds of immovable property is not available to citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan.
  2. The facility of remittance of sale proceeds of other financial assets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan.
3 C.8 Foreign Nationals of non-Indian origin on a visit to India.
NRO account (current/savings) can be opened by a foreign national 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 authorized 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.
3 C.9 Grant of Loans/ overdrafts by authorized dealer/ bank to account holders and third parties
  1. 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:
    1. The loans shall be utilized 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 re-lending.
    2. Regulations relating to margin and rate of interest as stipulated by Reserve Bank from time to time shall be complied with.
    3. The usual norms and considerations as applicable in the case of advances to trade/ industry shall be applicable for such loans/ facilities granted to third parties.
  2. Authorized dealer/ bank may permit overdraft in the account of the account holder subject to his commercial judgment and in compliance with the interest rate etc. directive.
3 C.10 Change of Resident Status of Account Holder
  1. 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 vacation 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. When a person resident in India leaves for Nepal or Bhutan for taking up employment or for carrying on business or vocation or for any other purposes indicating his intention to stay in Nepal or Bhutan for an uncertain period, his existing account will continue as a resident account. Such account should not be designated as Non-Resident (Ordinary) Account (NRO).
  2. 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 purpose indicating his intention to stay in India for an uncertain period. Where the account holder is only on a temporary visit to India, the account should continue to be treated as non-resident during such visit.
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