Rbi guidelines

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Neha Singh (Querist)

13 June 2012 what are the documents required to be furnished before RBI and other requirements to be fulfilled for direct transfer of money by an NRI Director in India?
Please help me out..

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

13 June 2012 Under revised guidelines, non-resident Indians (NRIs) can open either a non-resident external or a foreign currency non-resident (B) account with their resident close relative on a “former or survivor” basis. The resident close relative shall be eligible to operate the account as a power of attorney holder in accordance with existing instructions during the lifetime of the non-resident relative. At the same time, NRIs have been allowed to include non-resident close relative(s) as a joint holder(s) in their resident bank accounts on ‘former or survivor’ basis. However, such non-resident Indian close relatives shall not be eligible to operate the account during the lifetime of the resident account holder. For the purpose of this regulation close relative would be as the definition of relative in Section 6 of the Companies Act, 1956.

Similarly, changes have been made in the case of exchange earner’s foreign currency account and resident foreign currency accounts (which are held by resident Indians who own foreign exchange). In both cases, joint accounts are allowed with residents who will not be allowed to operate the account during the life time of the account holder. The easing of norms follows suggestions made by a panel to review the facilities for individuals under the Foreign Exchange Management Act, 1999.

For more info:

https://www.rbi.org.in/scripts/FAQView.aspx?Id=52

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