(i) By its Notification No. FERA.113/92-RB dated 27th April 1992, Reserve Bank has granted general permission to NRIs to invest by way of capital contribution in any proprietary or partnership concern in India engaged in any industrial, trading or commercial activity on non-repatriation basis subject to the following conditions:

(a) The amount invested should be remitted from abroad through normal banking channels or by transfer of funds held in investors bank accounts in India.

(b) The concern or the NRI does not engage in any agricultural/plantation activity or real estate business i.e. dealing in land and immovable property with a view to earning profit or income therefrom.

(c) The amount invested and income accruing thereon are not eligible for repatriation outside India and are payable only in non-convertible Indian rupees.

Consequently, it will not be necessary for such partnership/ proprietorship concerns in India to obtain prior permission of Reserve Bank for receiving capital contribution from NRIs provided the conditions mentioned in the Notification are satisfied. The firm should, however, submit the declaration in form DIN to the concerned Regional Office of the Reserve Bank in whose jurisdiction it is situated within a period of 90 days from the date of receipt of investment. The profits due to the NRI investor may be credited to his ordinary Non-Resident Account maintained with a bank in India.