Make your own free website on Tripod.com

NRI's FACILITIES WHEN RETURNING TO INDIA FAQs


Q. 118 Are Returning Indians permitted to retain their assets abroad even after return to India?
Q. 119 Are they required to obtain any permission from Reserve Bank for holding these assets?
Q. 120 Do they enjoy any freedom in regard to utilisation of these overseas assets?
Q. 121 Can they bring back the overseas assets to India and hold them with separate identity?
Q. 122 What is the Resident Foreign Currency (RFC) Account Scheme?
Q. 123 Is any permission from Reserve Bank required for opening such accounts with authorised dealers?
Q. 124 In which currencies can RFC accounts be maintained?
Q. 125 What funds can be credited to RFC accounts of Returning Indians?
Q. 126 Can income received from their overseas assets in the form of dividends etc., or sale proceeds of such assets be credited to RFC accounts?
Q. 127 Can pension received by the account holder from abroad be credited to his RFC account?
Q. 128 NRIs returning to India for permanent settlement were granted RIFEE facility. Is this facility still available?
Q. 129 Can funds in RFC accounts be remitted abroad?
Q. 130 Can funds in RFC accounts be utilised for local payments?
Q. 131 Can a Returning Indian desiring to go abroad again for employment, business or vocation transfer his funds in RFC account to NRE/FCNR account?
Q. 132 Can persons who have returned to India after a short assignment of less than one year open RFC accounts?
Q. 133 Can NRIs bring gold into India?
Q. 134 In what form can the gold be brought into India?
Q. 135 Are NRIs required to pay customs duty on the gold brought by them into India?
Q. 136 How often can a NRI bring gold into India?
Q. 137 Is it necessary that the NRI should have stayed abroad at least for a minimum period of six months prior to his return to India for being eligible to bring gold?
Q. 138 Can NRIs bring silver into India?
Q. 139 What is the rate of duty payable on such import?
Q. 140 Can they bring both gold and silver?
Q. 141 Can NRIs sell gold/silver imported by them to residents?


Section 5: FACILITIES WHEN RETURNING TO INDIA

A. Overseas Assets
Q. 118 Are Returning Indians permitted to retain their assets abroad even after return to India?
Ans. Effective 17th July 1992, the Central Government has granted exemption from the surrender requirement to persons who return to India after a continuous stay abroad of one year and above in respect of funds/assets acquired by them abroad otherwise than in contravention of FERA 1973 or out of foreign exchange earned through employment, business or vocation outside India taken up or commenced while they were resident outside India. Persons satisfying the conditions of general exemption can retain their foreign currency accounts with banks abroad and/or hold, transfer or dispose of their other foreign currency assets such as shares, securities or investments in business, etc. and immovable properties.

Q. 119 Are they required to obtain any permission from Reserve Bank for holding these assets?
Ans. No.

Q. 120 Do they enjoy any freedom in regard to utilisation of these overseas assets?
Ans. Yes. They would enjoy complete freedom for utilisation of these assets as well as income earned or sale proceeds received subsequently.

Q. 121 Can they bring back the overseas assets to India and hold them with separate identity?
Ans. Yes. They can repatriate these assets to India and hold them separately in India with authorised dealers under the Resident Foreign Currency Accounts Scheme (See Part B below).

B. Resident Foreign Currency (RFC) Accounts Scheme
Q. 122 What is the Resident Foreign Currency (RFC) Account Scheme?
Ans. This is a Scheme approved by Reserve Bank permitting persons of Indian nationality or origin, who have returned to India on or after 18th April 1992 for permanent settlement (Returning Indians), after being resident outside India for a continuous period of not less than one year to open foreign currency accounts with banks in India for holding funds brought by them to India. Persons who have returned to India before 18th April 1992 can also open RFC account if (a) they are holding foreign currency assets abroad with Reserve Bank's permission or (b) are in receipt of pension or other monetary benefits from their erstwhile employers abroad.

Q. 123 Is any permission from Reserve Bank required for opening such accounts with authorised dealers?
Ans. No.

Q. 124 In which currencies can RFC accounts be maintained?
Ans. RFC accounts can be maintained in any convertible currency.

Q. 125 What funds can be credited to RFC accounts of Returning Indians?
Ans. The entire amount of foreign exchange brought to India at the time of their return to India for permanent settlement as well as the balances standing to the credit of their NRE and FCNR accounts at the time of return can be credited to RFC accounts. However, the foreign exchange brought to India in the form of foreign currency notes/bank notes/travellers cheques should have been declared to Customs at the time of arrival on the Currency Declaration Form (CDF) if it exceeded U.S. $ 10,000 or its equivalent. In the case of foreign currency/bank notes, such a declaration on form CDF is compulsory if the amount exceeds U.S. $ 2,500 or its equivalent.

Q. 126 Can income received from their overseas assets in the form of dividends etc., or sale proceeds of such assets be credited to RFC accounts?
Ans. Yes. The entire income from such assets or sale proceeds of such assets repatriated to India can be credited to RFC accounts.

Q. 127 Can pension received by the account holder from abroad be credited to his RFC account?
Ans. Yes. The entire amount of pension received from abroad can be credited to his RFC account.

Q. 128 NRIs returning to India for permanent settlement were granted RIFEE facility. Is this facility still available?
Ans. No. RIFEE facility has been replaced by the RFC accounts facility.

Q. 129 Can funds in RFC accounts be remitted abroad?
Ans. Yes. Funds in RFC accounts can be remitted abroad for any bona fide purpose of the account holder or his dependents including exchange required for travel and other personal purposes and investments.

Q. 130 Can funds in RFC accounts be utilised for local payments?
Ans. Yes. Funds in RFC accounts can be withdrawn freely for local payments in rupees.

Q. 131 Can a Returning Indian desiring to go abroad again for employment, business or vocation transfer his funds in RFC account to NRE/FCNR account?
Ans. Yes.

Q. 132 Can persons who have returned to India after a short assignment of less than one year open RFC accounts?
Ans. Their applications for opening such accounts would be considered by Reserve Bank. Persons who have gone abroad for studies, training, etc. are, however, not eligible for this facility.

C. Import of Gold by NRIs
Q. 133 Can NRIs bring gold into India?
Ans. Yes. NRIs can bring into India gold upto 10,000 grams as part of their baggage once in six months provided they have stayed abroad for a continuous period of six months.

Q. 134 In what form can the gold be brought into India?
Ans. The gold may be brought into India in any form, including ornaments (other than ornaments studded with stones and pearls).

Q. 135 Are NRIs required to pay customs duty on the gold brought by them into India?
Ans. Yes. They are required to pay customs duty in any convertible foreign currency at a rate equivalent to Rs. 220/- per 10 grams of gold.

Q. 136 How often can a NRI bring gold into India?
Ans. A NRI can bring gold into India once in six months.

Q. 137 Is it necessary that the NRI should have stayed abroad at least for a minimum period of six months prior to his return to India for being eligible to bring gold?
Ans. Yes.

D. Import of Silver by NRIs
Q. 138 Can NRIs bring silver into India?
Ans. Yes. NRIs can bring to India silver upto 100 kilograms as part of their personal baggage.

Q. 139 What is the rate of duty payable on such import?
Ans. The rate of duty on import of silver is Rs. 500 per kilogram which is payable in foreign currency.

Q. 140 Can they bring both gold and silver?
Ans. Yes.

Q. 141 Can NRIs sell gold/silver imported by them to residents?
Ans. Yes. Gold/silver so brought by NRIs can be sold to residents against payment in rupees. Reserve Bank has granted general permission to persons resident in India to make payment to NRIs in Indian rupees by means of a crossed cheque in India and that such rupees are credited to Ordinary Non-resident Rupee (NRO) account of the NRI seller.