LIBERALISED
REMITTANCES FACILITIES TO NRIS/PIO AND FOREIGN NATIONALS
A.P (DIR Series) (2003-04) Circular No. 62, dated 31-1-2004
Attention of Authorised Dealers is invited to
paragraph 4 of A.P.(DIR Series) Circular No. 67 dated January 13, 2003,
permitting them to allow remittances upto US D 1 million, per calendar year,
out of balances held by NRIs/PIO/Foreign Nationals (including retired employees
or non-resident widows of Indian citizens) in NRO accounts/sale proceeds of
assets, on production of the following documents :
(i) an undertaking
(ii) a certificate by the person making remittance as stipulated in
A.P.(DIR Series) Circular No. 27 dated September 28, 2002 read with A.P.(DIR
Series) Circular No. 56 dated November 26, 2002.
2. The relevant amendments to the Foreign Exchange
Management (Remittance of Assets) Regulations, 2000 notified vide Notification
No. FEMA 13/2000-RB dated May 3, 2000 have since been issued vide Notification
No. FEMA 97/2003-RB dated July 8, 2003.
3. Clarifications on various aspects of the facility -
eligibility criteria, purpose and the ceiling for repatriation, etc. are
furnished in the Annexure.
4. Authorised Dealers may bring the contents of this
circular to the notice of their constituents concerned.
5. The directions contained in this circular have been
issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act,
1999 (42 of 1999).
Facilities for remittance of assets held in India
by Non-Residents
(A) Who
is eligible?
The repatriation facility is available to
the following category of persons :
(I)
Foreign national [other than a citizen of Nepal or Bhutan or a Person of
Indian Origin (PIO)] who :
(i) has retired from an employment in
India, or
(ii) has inherited the assets from a person
who was a resident in India, or
(iii) A widow resident outside India and has inherited assets of her
deceased husband who was an Indian Citizen, resident in India.
(II) NRI/PIO
who acquired the assets in question, out of rupee resources when he was in
India or by way of legacy/inheritance from a person who was a resident in
India.
(B) Funds/assets
eligible for repatriation
(a) sale proceeds of immovable property,
(b) assets acquired by way of
Inheritance/legacy,
(c) a deposit with a bank or a firm or a
company,
(d) provident fund balance or superannuation
benefits,
(e) amount of claim or maturity proceeds of
insurance policy,
(f) sale proceeds of shares, securities,
(g) any other asset held in India, in accordance with the
provisions of the Act or Rules or Regulations made thereunder (as defined at
Regulation 2(v) of Notification No. FEMA 13/2000-RB dated May 3, 2000).
(C) Purpose of
remittance
The liberalised remittance facility is
available for any bona fide purpose.
(D) General conditions to be satisfied for
repatriation of assets.
(i) Documentary evidence in support of the
acquisition of the funds/assets proposed to be remitted.
(ii) Undertaking and Certification relating
to tax compliance.
(E) Specific conditions relating to repatriation of sale proceeds of immovable
property.
(i) Repatriation of sale proceeds of
immovable property, acquired out of Rupee funds is available subject to the
condition that the property should have been held for a minimum period of 10
years. If such a property acquired out of Rupee funds is sold after being held
for less than 10 years, remittance can be made, if the sale proceeds have been
held by the NRI/PIO for the balance period in NRO Account (Savings/Term
Deposits) or in any other eligible security, provided such investment is traced
to the sale proceeds of the immovable property.
(ii) There is no lock-in-period in respect of
immovable property acquired by way of—
(a) Inheritance/legacy.
(b) Foreign currency funds (through inward
remittance or by debit to FCNR/NRE accounts.
(F) Remittance
Procedure
(i) In case, the remittance is to be made in more than one
instalment, the remittances of all instalments should be remitted through the
same authorised dealer.
(ii) It is also clarified that the remittance facility is
available even if the NRI/PIO/Foreign National is not maintaining any NRO
account. However, the remittance should be routed through banking channel only,
subject to tax compliance.