According to the study conducted by the Reserve bank of India, remittances made by overseas Indians from Gulf countries, accounted for an average of 27% of the total remittance inflows to India during the first half of 2009-10.
"We have received $66.13 billion in remittances in 2011-12," Minister for Overseas Indian Affairs Vayalar Ravi said today in a written reply to a question in Lok Sabha.
However, the Government has launched the "Mahatma GandhiPravasi Suraksha Yojana" (MGPSY) for Indian workers holding Emigration Check Required (ECR) passports and a valid work permit in an ECR country.
This scheme encourages and enables Overseas Indian Workers to save for their return and resettlement and to save for their old age. This also provides a free life insurance cover against natural death during the period of coverage, under the scheme.
Facilities available to returning NRIs/PIOs are:
- Returning NRIs/PIOs may continue 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 when resident outside India.
- The income and sale proceeds of assets held abroad need not be repatriated.
- Returning NRIs /PIOs may open, hold and maintain with an authorised dealer in India a Resident Foreign Currency (RFC) Account to transfer balances held in Non-Resident (External) Rupee/Foreign Currency Non-Residential NRE/FCNR(B) accounts.
- Proceeds of assets held outside India at the time of return can be credited to RFC account.
- The funds in RFC accounts are free from all restrictions regarding utilisationof foreign currency balances including any restriction on investment in any form outside India.
- RFC accounts can be maintained in the form of current or savings or term deposit accounts, where the account holder is an individual and in the form of current or term deposits in all other cases.