Thursday, October 20, 2011

Non-resident Indians allowed FCNR (B) account in any convertible currency
NRIs can also hold property abroad

RBI has allowed Non-resident Indians to hold their foreign currency accounts in any currency that is fully convertible. Authorised Dealer banks in India can now accept FCNR (B) deposits in any permitted currency.

This move will help NRIs by giving them more options in the holding of accounts, and lessen the risk from fluctuations in major currencies. Earlier, Foreign Currency (Non-Resident) Account (Banks) (FCNR(B) account holders were allowed to hold accounts in only certain currencies such as the Pound Sterling, US dollar, Japanese yen, euro, Canadian dollar and Australian dollar.

RBI has also said that any citizen who was earlier residing in a foreign country can own or transfer property or other assets in that nation if it was acquired during the time of his residence there. RBI’s statement says, “A person resident in India is free 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 by such person when he was resident outside India or inherited from a person who was resident outside India.”

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