FEMA, 1999 - Grant of Rupee loan to NRIs - Liberalisation

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....o NRIs - Liberalisation Under the provisions of the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 notified vide Notification No. FEMA 4/2000-RB dated May 3, 2000, Authorised Dealers are allowed to grant loans in rupees to Non-Resident Indians (NRIs) (i) against the security of shares or immovable property in India for personal or business purposes (Regulation 7) ....

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.... by the Authorised Dealers based on relevant directives issued by the Department of Banking Operations and Development in this regard. 4. Authorised Dealers may ensure that the proceeds of rupee loan are not utilised for any of the following activities: * The business of chit fund, or * Nidhi Company, or * Agricultural or plantation activities or in real estate business, or construction o....