Fund transfer to NRI

Civil law 102 views 2 replies

A private limited company wants to transfer INR 10000 to an NRI.

What are the implications from FEMA point of view.

1. If the bank account is a domestic one

2. If the bank account is NRO/NRE one.

 

Thanks

 

Replies (2)
Funds to be transferred to an nri.

As per FEMA regulations, let’s discuss the implications of transferring INR 10,000 from a private limited company to an NRI in different scenarios:

  1. If the bank account is a domestic one:

    • If the NRI has a regular domestic bank account (not an NRO/NRE account), the following implications apply:
      • The transfer is subject to the Liberalized Remittance Scheme (LRS) limit.
      • The company must ensure compliance with the LRS limit (currently USD 250,000 per financial year).
      • The NRI can receive the funds in their regular savings account.
  2. If the bank account is NRO/NRE one:

    • If the NRI has an NRO/NRE account, the implications are as follows:
      • The transfer is allowed without any specific limit.
      • The funds can be credited to the NRO (Non-Resident Ordinary) or NRE (Non-Resident External) account.
      • The NRI can freely repatriate the funds from the NRE account.

 


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