Facilities to NRIs/PIOs
and Residents
AP (DIR Series) (2002-2003) Circular No. 1, dated 2-7-2002
As
Authorised Dealers are aware, in terms of paragraph 4 of Schedule 3 to the
Notification No. FEMA 5/2000-RB dated May 3, 2000, balances in NRO accounts are
not eligible for remittance outside India, without the approval of Reserve
Bank.
2. With a
view to further liberalising the Exchange Control Regulations and providing
additional facilities to Non-Resident Indians/Persons of Indian Origin
(NRIs/PIOs), it has since been decided that henceforth Authorised Dealers may
allow the facility of repatriation of funds out of balances held by NRIs/PIOs
in their Non-resident Ordinary Rupee (NRO) Accounts, for the following purposes
:
i. Upto US
$ 30,000 per academic year, to meet expenses in connection with education of
their children;
ii. Upto
US $ 1,00,000 to meet the medical expenses abroad of the account holder or his
family members; and
iii. Upto
US $ 1,00,000 per year, representing sale proceeds of immovable property, held
by them for a period of not less than 10 years subject to payment of applicable
taxes.
3. Authorised
Dealers may bring the contents of the circular to the notice of their
constituents concerned.
4. The directions
contained in this circular have been issued under section 10(4) and section
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).