LOAN AGAINST NRE DEPOSIT-REPATRIATION RESTRICTIONS

DHANYA.G (Practicing Chartered Accountant)   (39 Points)

09 June 2023  

https://incometaxindia.gov.in/Documents/Provisions%20for%20NR/provision-for-non-resident-fema-borrowing-and-lending-in-rupees-regulations-2000.htm 

The issue is whether a Non Resident can repatriate amounts boorowed from his NRE Deposits? 

For Eg; An NRI is planning to avail Loan against his NRE Deposits, and the loan amount has to be credited to his NRO account only.

Now, this NRI wants to repatriate this amount lying in his NRO Account to his NRE Account.

Is there any restrictions for this?