30 May 2015
Hi Can an NRI send money to India as gift to his relative?? Is there any limit upto which the amount can be send without any approvals from RBI?? and can the resident reciver use that money for any purpose like investing in business??
kindly explain with respect to FEMA and FDI rules.
31 May 2015
NRIs can send gifts (in the form of money/ cash transfers/goods) to their relatives/ Non relatives irrespective of any amount as per FEMA Act and rules.
3.2.2 FDI in Partnership Firm/Proprietary Concern: (i) A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) resident outside India can invest in the capital of a firm or a proprietary concern in India on non-repatriation basis provided; (a) Amount is invested by inward remittance or out of NRE/FCNR(B)/NRO account maintained with Authorized Dealers/Authorized banks. (b) The firm or proprietary concern is not engaged in any gricultural/plantation or real estate business or print media sector. (c) Amount invested shall not be eligible for repatriation outside India. (ii) Investments with repatriation option: NRIs/PIO may seek prior permission of Reserve Bank for investment in sole proprietorship concerns/partnership firms with repatriation option. The application will be decided in consultation with the Government of India.
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