Foreign currency loans against FCNR(B) deposits permitted in India with strict security, maturity and repayment safeguards. Authorised dealers in India may grant foreign currency loans to holders of their own FCNR(B) deposits in India, provided loans are made only to the deposit holder, secured fully by the deposit, documented by the holder (not by POA), and subject to conditions: loan maturity not to exceed deposit maturity; loans not for investments in India; compliance with margin and prudential instructions; repayment by foreign remittance or adjustment of the deposit; board approval and adequate monitoring required.
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.
Foreign currency loans against FCNR(B) deposits permitted in India with strict security, maturity and repayment safeguards.
Authorised dealers in India may grant foreign currency loans to holders of their own FCNR(B) deposits in India, provided loans are made only to the deposit holder, secured fully by the deposit, documented by the holder (not by POA), and subject to conditions: loan maturity not to exceed deposit maturity; loans not for investments in India; compliance with margin and prudential instructions; repayment by foreign remittance or adjustment of the deposit; board approval and adequate monitoring required.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
