Loans in Rupees by resident individuals to NRI close relatives

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....AD) banks is invited to Regulation 7 of the Notification No. FEMA 4/2000 dated May 3, 2000, viz. Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, as amended from time to time, in terms of which an authorised dealer in India may grant loan in rupees to a non-resident Indian. 2. The Committee to review the facilities for individuals under the Foreign Exchange Manag....

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....he loan amount should be within the overall limit under the Liberalised Remittance Scheme of USD 200,000 per financial year available for a resident individual. It would be the responsibility of the lender to ensure that the amount of loan is within the Liberalised Remittance Scheme limit of USD 200,000 during the financial year; (iii) the loan shall be utilised for meeting the borrower's perso....

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....the NRO a/c of the NRI /PIO. Credit of such loan amount may be treated as an eligible credit to NRO a/c; (vi)   the loan amount shall not be remitted outside India; and (vii) repayment of loan shall be made by way of inward remittances through normal banking channels or by debit to the Non-resident Ordinary (NRO) /  Non-resident External (NRE) / Foreign Currency Non-resident (....