By its Notification No.F.E.R.A.196/99-RB dated 30th March 1999 Reserve Bank has granted general permission to Indian companies (including non-banking finance companies registered with Reserve Bank) to accept deposits from NRIs/PIOs/OCBs with repatriation benefits subject to the following conditions:-

i) The deposits are accepted under a public deposit scheme.

ii) The amount representing the deposit is received by inward remittance through normal banking channels or by debit to depositors NRE/FCNR account with an authorised dealer in India.

iii) The rate of interest on deposits shall not exceed the ceiling rate prescribed from time to time under the Companies (Acceptance of Deposit) Rules, 1975.

iv) The maturity period of deposit should not exceed 3 years.

v) If the deposit accepting company is a non banking financial company, it should have obtained adequate credit rating as prescribed by the Department of Non-Banking Supervision of Reserve Bank.

vi) The aggregate amount of deposits accepted by the company should not exceed 35% of its net owned funds.

vii) The company accepting the deposit should comply with the laws, rules, regulations issued by Government of India, Reserve Bank, the Company Law Board or any other competent authority as applicable.

viii) The company accepting deposits should not utilise the funds representing such deposits for undertaking agricultural/plantation activities or real estate business or for investing in other concern/firm/company engaged in or proposing to engage in these activities or for relending.

ix) The maturity proceeds/interest, net of taxes, may be credited to NRE/FCNR/NRO account of the non-resident depositor.