Authorised dealers may open accounts in the names of non-resident individuals/entities without approval of Reserve Bank for the purpose of putting through bona fide transactions in rupees not involving any violation of the provisions of FERA 1973 and Exchange Control regulations framed thereunder. The operations on the accounts do not allow, inter alia, making available foreign exchange to any person resident in India against reimbursement in rupees or in any other manner in India. At the time of opening of the account, the account holders should give an undertaking that in cases of debits to the accounts for the purpose of investment in India and credits representing sale proceeds of investments, they would ensure that such investments/disinvestments would be covered either by the general or special permission of Reserve Bank. Once this undertaking has been obtained, authorised dealers need not verify the particulars of approvals for investments/disinvestments while permitting individual credits/debits to the account.

NOTES: A.Opening of and operations on the accounts of individuals/entities of Pakistani/Bangladesh nationality/ownership require approval of Reserve Bank.

B.Post Offices have been authorised to maintain savings bank accounts in the names of persons resident outside India and to allow operations on these accounts subject to the same rules as are applicable to NRO accounts maintained by authorised dealers.