Mumbai, May 7: The Reserve Bank of India (RBI), the apex bank of country, has allowed the transfer of funds from Non-Resident Ordinary (NRO) account to Non-Resident External (NRE) account within the overall ceiling of one million dollar per financial year for individuals.
At present transfer of funds from NRO to NRE account is not permissible. No one can transfer funds from this account in country. It will benefit the individuals going abroad for the job and doing business overseas.
According to new RBI circular NRI shall be eligible to transfer funds from NRO account to NRE account within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable (i.e. as applicable if funds were remitted abroad). Such credit of funds to NRE account shall be treated as eligible credit in terms of earlier circular.
Earlier, The Committee to Review the Facilities for Individuals Under FEMA, 1999 (Chairperson : Smt. K.J.Udeshi) has recommended that the NRIs/PIOs may be permitted, subject to payment of applicable taxes, to transfer repatriable funds from their NRO account within the overall ceiling of US $ 1 million per financial year, for credit to their NRE account in India.
All authorized dealer banks and authorized banks may bring the contents of this circular to the notice of their constituents and customers concerned.
The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Mumbai, May 7: The Reserve Bank of India (RBI), the apex bank of country, has allowed the transfer of funds from Non-Resident Ordinary (NRO) account to Non-Resident External (NRE) account within the overall ceiling of one million dollar per financial year for individuals.
At present transfer of funds from NRO to NRE account is not permissible. No one can transfer funds from this account in country. It will benefit the individuals going abroad for the job and doing business overseas.
According to new RBI circular NRI shall be eligible to transfer funds from NRO account to NRE account within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable (i.e. as applicable if funds were remitted abroad). Such credit of funds to NRE account shall be treated as eligible credit in terms of earlier circular.
Earlier, The Committee to Review the Facilities for Individuals Under FEMA, 1999 (Chairperson : Smt. K.J.Udeshi) has recommended that the NRIs/PIOs may be permitted, subject to payment of applicable taxes, to transfer repatriable funds from their NRO account within the overall ceiling of US $ 1 million per financial year, for credit to their NRE account in India.
All authorized dealer banks and authorized banks may bring the contents of this circular to the notice of their constituents and customers concerned.
The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
