The central bank has increased the limit on transfer by way gift from resident Indians to non-residents.
Then earlier rule was that a resident Indian cannot give out gift in cash or securities having combined value of more than $25,000 in a financial year. Now this limit has been increased to $50,000 in a financial year.
If the amount is more than that of $50,000 then the person resident who would want to transfer more will require a prior approval of the RBI.
The RBI also has given permission to include the non-resident close relative as a joint bank account holder in their resident bank accounts. But such close non-resident Indians will not be eligible to operate the account during life-time of the resident Indian, added the RBI.
In the notification the central bank also stated that the non-resident Indian can open NRE/FCNR(B) account with their resident close relative. It said, “The resident, close relative should be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/PIO account holder."
RBI also decided that resident individuals will be permitted to include resident close relative as a joint holder in their EEFC (Exchange Earners Foreign Currency) or RFC(Resident Foreign Currency) bank.