Borrowing in rupees by residents subject to remittance source, interest cap, tenure limit and non repatriation requirement. A resident (other than an Indian-incorporated company) may borrow rupees from a non-resident Indian or person of Indian origin provided funds arrive by inward remittance or from the lender's NRE/NRO/FCNR/NRNR/NRSR account, the loan is time limited, interest is capped at a margin above the Bank rate, repayments and interest are credited to specified non-resident accounts as required, and the borrowed amount is not eligible for repatriation outside India.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Borrowing in rupees by residents subject to remittance source, interest cap, tenure limit and non repatriation requirement.
A resident (other than an Indian-incorporated company) may borrow rupees from a non-resident Indian or person of Indian origin provided funds arrive by inward remittance or from the lender's NRE/NRO/FCNR/NRNR/NRSR account, the loan is time limited, interest is capped at a margin above the Bank rate, repayments and interest are credited to specified non-resident accounts as required, and the borrowed amount is not eligible for repatriation outside India.
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