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RBI changes rule for resident Indians to give gift to NRI, NRO


RBI tweaks rules for NRI, NRO and joint bank accounts
The central bank of India, i.e. Reserve Bank of India regularly referred to as RBI, made announcement relaxing the 'Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000'. This change would benefit resident and non-resident Indians.

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.

Read more about: rbi nri forex bank currency dollar
Story first published: Friday, September 16, 2011, 11:54 [IST]
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