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FEMA Query

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Vijay Hegde

32 Points Joined February 2011

Hi,

I was working in US around 4 years back. Now settled in India. I hold a savings account in US. Recently while reading some articles, I came to know of a FEMA law that resident indian (who was an NRI before) can hold a savings account only for 2 years post return. Can the experts provide an insight into the law or reference for understanding ?

Regards

Vijay

Replies (1)

SAMAR JEET SINGH

72 Points Joined August 2009

Hi,

Follow the link

https://www.rbi.org.in/scriptts/faqview.aspx?id=52

V. Facilities to returning NRIs/PIO

Returning NRIs/ PIO

May continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India.
May open, hold and maintain with an authorised dealer in India a Resident Foreign Currency (RFC) Account to transfer balances held in NRE/FCNR(B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment in any form outside India.

Regards