(i) Non-resident persons of Indian nationality/origin (NRIs) and overseas corporate bodies (OCBs) predominantly owned by NRIs have been permitted to make investment in partnership / proprietorship concerns, shares/debentures of Indian companies, Indian mutual funds, real estate, deposits with Indian companies/banks, units of Unit Trust of India, etc. on non-repatriation basis. NRIs are also permitted by Reserve Bank to grant loans to resident persons/firms/companies on non-repatriation basis. Further, the investment/deposits held in India by Indian nationals who have become non-residents on account of their going abroad on employment/emigration, as well as income/interest earned on such investment/deposit/loan is also not allowed to be repatriated abroad. [cf. paragraphs 10C 6 to 10C 10, 10C 30,10C 31, 10C 34, 10D 8, 11E 6 (item A.5), 11E 7 and 13A 9].Although the investment/principal amount of deposits/loans made/held on non-repatriation basis under these schemes, investment made by NRIs out of rupee loans from banks in India against the security of NRE/FCNR accounts, sale proceeds of the house/flat acquired/constructed out of loans obtained by NRIs against the security of the NRE/FCNR accounts, if sold, continue to be non-repatriable, authorised dealers may allow repatriation of net income/interest earned (i.e. after payment of tax) on these investments/deposits/loans, as also of net income by way of rent earned on house/flat acquired/constructed, in a phased manner as under :
Incomes earned during the financial year Amount eligible for repatriation
1994-95 up to U.S.$ 1,000 (U.S.dollars one thousand) in full and one third of the balance amount of income
1995-96 up to U.S.$ 1,000 (U.S. dollars one thousand) in full and two third of the balance amount of income
1996-97onwards Entire income
Applications for remittance of such incomes may be made to Reserve Bank on a consolidated basis at the end of the year in accordance with the procedure laid down in paragraph (ii). Since the entire income will be repatriable from 1996-97 onwards, remittances pertaining to the period 1996-97 and onwards will be permitted to be made either in one lumpsum or in suitable instalments, if so desired by the applicants.
(ii) For the purpose of availing of this facility, the concerned NRI/OCB should designate a branch of an authorised dealer through whom the remittance of income is sought to be made and submit an application to it in form RCI, duly completed, together with the documents specified therein and details of income earned on investments/deposits as also any other income like pension earned. Authorised dealer on satisfying himself with reference to the particulars/documents and the Chartered Accountants certificate furnished that the income/interest etc. sought to be repatriated is eligible for remittance, may allow the remittance out of the relevant funds held in the applicants NRO account or credit the same to the NRE/FCNR account of the applicant after ensuring that the Income-tax has been paid as per the provisions of Income-tax Act and an undertaking/certificate regarding payment of income-tax (cf. paragraph 3 B.10) has been produced from the Income-tax Authorities. Doubtful cases should be referred to Reserve Bank with full particulars.
NOTE : Remittance of pension may be allowed if the applicant does not have any other income in India, without insisting on a certificate from Chartered Accountant/Income tax authorities regarding payment of Income-tax. In such cases authorised dealers should obtain a "one time certificate" issued by the pension disbursing office that the applicable Income-tax is being deducted by them.
(iii) The designated branch should maintain party-wise records of the approvals granted by Reserve Bank as also actual remittances made there against. A half-yearly statement in form CIR should be sent to Reserve Bank giving details of the remittances made/credits to NRE/FCNR accounts allowed, by 15th of the month following the half-year.
(Note:- see
1. A.P.(Dir Sr.)Cir. No.17/2001-RB, dt.15/12/2001)