RBI relaxes forex facilities for NRIs and PIOs
Reserve Bank of India has relaxed some foreign exchange facilities for NRIs and persons of Indian origin. RBI has further liberalised foreign exchange facilities for individuals under the Foreign Exchange Management Act (FEMA).
NRIs can now be joint account holders in resident SB, EEFC, and RFC accounts. Indian residents can include non-resident close relatives as joint holders in their resident bank accounts. However, non-resident relatives will not be eligible to operate the account during the lifetime of the resident account holder.
NRIs and PIOs are allowed non-resident external ( NRE) rupee account schemes and foreign currency non-resident (FCNR) accounts with their resident close relatives as joint account holders on a 'former or survivor' basis now. The resident relative should be eligible to operate the account as a power of attorney holder during the lifetime of the NRI or PIO account holder.
Resident Indians can now gift shares and debentures up to $50,000 in a financial year. Resident individuals are now permitted to make rupee gifts within the overall limit of $ 2,00,000 in a financial year to a NRI or PIO who is a close relative.
Resident Indians can now lend in rupees within the overall limit under the liberalised remittance scheme of $2,00,000 in a financial year to a NRI or PIO who is a close relative. The loan should be free of interest. The minimum maturity of the loan should be one year.
Residents can also bear the medical expenses of NRI close relatives.