Maintenance Abroad of Assets and Bank Accounts of Returning Indians

Non Resident Indians including Persons of Indian Origin have been exempted from declaring their assets abroad and/or obtaining permission from the Reserve Bank of India to hold the same at the time of their return to India provided such persons have a minimum continuous stay of one year abroad and have acquired such assets lawfully.

The above said general exemption applies to all incomes i.e. interest, dividend earned on foreign exchange assets, bank deposits, investment in foreign shares or securities or immovable properties situated out side India or investment in business out side India. The exemption is also applicable for acquiring foreign currency continuously through such assets. Fresh credit to such assets should be out of foreign currency acquired for which exemption is also available. There is no restriction for the utilisation of such balances held abroad for any bona fide payments, including making further investment in shares, securities or immovable properties abroad provided the cost of such investment and or subsequent payment required is met exclusively out of such balances eligible for such exemption.

Resident Foreign Currency Accounts (RFC Accounts):

Persons of Indian Nationality/Origin, resident outside India for not less than one year, on becoming residents are free to open and maintain such accounts with authorised dealers.

RFC accounts may be in the form of savings (without cheque facility), current or term deposits.

The funds may be allowed to be freely utilised by the account holder, for any bona-fide remittances outside India through normal banking channels and for withdrawals in Indian rupees.

On becoming Non Resident, the funds can be transferred abroad or credited to fresh NRE/FCNR accounts.

Where the stay abroad is less than one year, an application in form RFC has to be made to the authorised dealer and referred to the Reserve Bank of India for specific approvals.