Master Circular on Non-Resident Ordinary Rupee (NRO) Account.

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.... Manager INDEX 1 Definitions 2 Eligibility 3 Types of Accounts 4 Joint Accounts with Residents / Non- Residents 5 Permissible Credits / Debits 6 Remittance of Assets 7 Foreign nationals of non-Indian origin on a visit to India 8 Grant of loans/overdrafts by the Authorised Bank to account holders and third parties 9 Change of resident status of account holder 10 Treatment of loans /overdrafts in the event of change in the resident status of the borrower 11 Payment of funds to Non-resident / Resident nominee 12 Operation of NRO account by Power of Attorney holder 13 Facilities to a person going abroad for studies 14 International Credit Cards 15 Income-Tax Annex-1 Statement/returns to be submitted to the Reserve Bank Annex-2 Operational Instructions for Authorised Dealer Banks APPENDIX 1. Definitions Non-Resident Indian (NRI) NRI for this purpose is defined in Regulation 2 of FEMA Notification No.5 dated May 3, 2000. In terms of this Notification, an NRI is a person resident outside India, who is a citizen of India or is a person of Indian origin. Person of Indian Origin ....

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....elative of the resident individual [close relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer. The amount shall be credited to the Non-Resident (Ordinary) Rupee Account (NRO) a/c of the NRI / PIO and credit of such gift amount may be treated as an eligible credit to NRO a/c. The gift amount would be within the overall limit of USD 200,000 per financial year as permitted under the Liberalised Remittance Scheme (LRS) for a resident individual. (vii) Resident individual to lend to a Non resident Indian (NRI)/ Person of Indian Origin (PIO) close relative [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic transfer, subject to conditions within the overall limit under the Liberalised Remittance Scheme of USD 200,000 per financial year available for a resident individual. The loan amount should be credited to the NRO a/c of the NRI /PIO. Credit of such loan amount may be treated as an eligible credit to NRO a/c; B. Debits (i) All local payments in rupees including payments for investments in India subject to compliance with the relevant regulations made by the Reserve Ba....

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....Taxes vide their circular No.10/2002 dated October 9, 2002. 6.3 Assets acquired in India out of Rupee funds 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. 6.4 Restrictions • 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. A person or his successor who has acquired immovable property in accordance with Section 6(5) of FEMA, 1999 cannot repatriate sale proceeds of such property outside India except with prior permission of the Reserve Bank. • The facility of remittance of sale proceeds of other financial assets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan. 7. Foreign nationals of non-Indian origin on a visit to India NRO (current/savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought b....

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....Account (NRO). (ii) Foreign nationals who come to India on employment and become residents in terms of section 2 (v) of FEMA, 1999 and are eligible to open/hold a resident savings bank account are permitted to re-designate their resident account maintained in India as NRO account on leaving the country after their employment to enable them to receive their legitimate dues subject to certain conditions. (b) From Non- resident to Resident NRO accounts may be re-designated as resident Rupee accounts on 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. 10. Treatment of loans /overdrafts in the event of change in the resident status of the borrower In case of a person who had availed of loan or overdraft facilities while resident in India and who subsequently becomes a person resident outside India, the Authorised Dealer / bank may at their discretion and commercial judgement allow continua....

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.... Central Board of Direct Taxes, Ministry of Finance, Government of India vide their Circular No. 10/2002 dated October 9, 2002 [cf. A.P. (DIR Series) Circular No. 56 dated November 26, 2002]. Annex-1 Statement/returns to be submitted to the Reserve Bank Particulars of statement Periodicity Relevant instructions Facilities to NRIs/PIO and Foreign Nationals - Liberalisation - Remittance from NRO account. Quarterly A.P. (DIR Series) Circular No. 12 dated November 16, 2006 Annex-2 Operational Instructions for Authorised Dealer Banks 1. General Authorised Dealer banks may carefully study the provisions of the Act / Regulations / Notifications issued under Foreign Exchange Management Act, 1999 (the Act). Reserve Bank will not prescribe the documents which should be verified by the Authorised Dealer banks while permitting remittances for various transactions. In terms of the provisions contained in sub-section 5 of Section 10 of the Act, before undertaking any transaction in foreign exchange on behalf of any person, Authorised Dealer is required to obtain a declaration and such other information from the person (applicant) on whose behalf the tran....

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....le proceeds of other financial assets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan. 5. Tax Compliance Authorised Dealer banks can allow remittances to non- residents only on production of an undertaking by the remitter and a certificate from a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India vide their Circular No.10/2002 dated October 9, 2002. [cf. A.P. (Dir Series) Circular No.56 dated November 26, 2002]. APPENDIX List of notifications / circulars which have been consolidated in this Master Circular - Non-Resident Ordinary Rupee (NRO) Account http://www.rbi.org.in/Scripts/BS_ApCircularsDisplay.aspx http://www.rbi.org.in/Scripts/Bs_FemaNotifications.aspx Sl. No. Circular No. Date 1. Notification No. FEMA 62/2002-RB May 13, 2002 2. Notification No. FEMA 97/2003-RB July 8, 2003 3. Notification No. FEMA 119/2004-RB June 29,2004 4. Notification No. FEMA 133/2005-RB April 1, 2005 5. Notification No. FEMA 156/2007-RB June 13, 2007 1. A.P. (DIR Series) Circular No.45 May 14, 2002 2. A.P. (DIR Series)....