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Facilities to NRIs
A.
P. (DIR Series) Circular No. 1 dated 2nd July 2002
As
Authorised Dealers are aware, in terms of Paragraph 4 of Schedule 3 to the
Notification No. FEMA 5/2000-RB dated May 3, 2000 balances in NRO accounts are
not eligible for remittance outside India, without the approval of Reserve Bank.
2. With a view to further liberalising the
Exchange Control Regulations and providing additional facilities to Non-Resident
Indians/ Persons of Indian Origin (NRIs/ PIOs), it has since been decided that
henceforth Authorised Dealers may allow the facility of repatriation of funds
out of balances held by NRIs/ PIOs in their Non-resident Ordinary Rupee (NRO)
Accounts, for the following purposes:
(i)
Upto US$ 30,000 per academic year, to meet expenses in connection with
education of their children;
(ii)
Upto US$ 1,00,000 to meet the medical expenses abroad of the account
holder or his family members; and
(iii) Upto US$ 1,00,000 per year,
representing sale proceeds of immovable property, held by them for a period of
not less than 10 years subject to payment of applicable taxes.
3.
Authorised Dealers may bring the contents of the circular to the notice
of their constituents concerned.
4. The directions contained in this circular
have been issued under Section 10 (4) and Section 11 (1) of the Foreign Exchange
Management Act, 1999 (42 of 1999).
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