Overseas
Assets
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Are Returning
Indians permitted to retain their assets abroad even after return to India?
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Effective 17th
July,1992, the Central Government has granted exemption from the surrender
requirement to persons who return to India after a continuous stay abroad of one
year and above in respect of funds/assets acquired by them abroad otherwise than
in contravention of FERA 1973 or out of foreign exchange earned through
employment, business or vocation outside India taken up or commenced while they
were resident outside India. persons satisfying the conditions of general
exemption can retain their foreign currency accounts within bank abroad and/or
hold,transfer or dispose of their other foreign currency assets such as
shares,securities or investments in business, etc. and immovable properties. |
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Are they
required to obtain any permission from Reserve Bank for holding these assets?
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No. |
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Do they enjoy
any freedom in regard to utilisation of these overseas assets?
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Yes. They would
enjoy complete freedom for utilisation of these assets as well as income earned
or sale proceeds received subsequently. |
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Can they bring
back the overseas assets to India and hold them with separate identity?
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Yes. They can
repatriate these assets to India and hold them separately in India with
authorised dealers under the Resident Foreign Currency Accounts Scheme (See
Below). |
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Resident
Foreign Currency (RFC) Accounts Scheme
Assets
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What is the
Resident Foreign Currency (RFC) Account Scheme? |
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This is a Scheme
approved by Reserve Bank permitting persons of Indian nationality or origin, who
have returned to India on or after 18th April 1992 for permanent settlement
(Returning Indians), after being resident outside India for a continuous period
of not less than one year, to open foreign currency accounts with banks in India
for holding funds brought by them to India. Persons who have returned to India
before 18th April 1992 can also open RFC account if (a) they are holding foreign
currency assets abroad with Reserve Bank's permission or (b) they are in receipt
of pension or other monetary benefits from their erstwhile employers
abroad. |
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Is any
permission from Reserve Bank required for opening such accounts with authorised
dealers? |
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No. |
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In which
currencies can RFC accounts be maintained? |
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RFC accounts can be
maintained in any convertible currency. |
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What funds can
be credited to RFC accounts of Returning Indians? |
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The entire amount
of foreign exchange brought to India at the time of their return to India for
permanent settlement as well as the balances standing to the credit of their NRE
and FCNR accounts at the time of return can be credited to RFC accounts.
However, the foreign exchange brought to India in the form of foreign currency
notes/bank notes/travellers cheques should have been declared to Customs at the
time of arrival on the Currency Declaration Form( CDF) if it exceeded U.S. $
10,000 or its equivalent. In the case of foreign currency/bank notes, such a
declaration on form CDF is compulsory if the amount exceeds U.S. $ 2,500 or its
equivalent. |
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Can income
received from their overseas assets in the form of dividends etc. or sale
proceeds of such assets be credited to RFC accounts? |
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Yes. The entire
income from such assets or sale proceeds of such assets repatriated to India can
be credited to RFC accounts. |
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Can pension
received by the account holder from abroad be credited to his RFC account?
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Yes. The entire
amount of pension received from abroad can be credited to his RFC
account. |
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NRIs returning
to India for permanent settlement were granted RIFEE facility. Is this facility
still available? |
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No. RIFEE facility
has been replaced by the RFC accounts facility. |
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Can funds in RFC
accounts be remitted abroad? |
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Yes. Funds in RFC
accounts can be remitted abroad for any bona fide purpose of the account holder
or his dependents including exchange required for travel and other personal
purposes and investments. |
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Can funds in RFC
accounts be utilised for local payments? |
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Yes. Funds in RFC
accounts can be withdrawn freely for local payments in rupees. |
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Can a Returning
Indian desiring to go abroad again for employment ,business or vocation transfer
his funds in RFC account to NRE/FCNR account? |
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Yes. |
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Can persons who
have returned to India after a short assignment of less than one year open RFC
accounts? |
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Their applications
for opening such accounts would be considered by Reserve Bank. Persons who have
gone abroad for studies, training ,etc. are, however, not eligible for this
facility. |
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Import
of Gold by NRI's
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Can NRIs bring
gold into India? |
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Yes. NRIs can bring
into India gold upto 10,000 grams as part of their baggage once in six months
provided they have stayed abroad for a continuous period of six months.
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In what form can
the gold be brought into India? |
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The gold may be
brought into India in any form, including ornaments (other ornaments studded
with stones and pearls). |
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Are NRIs
required to pay customs duty on the gold brought by them into India?
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Yes. They are
required to pay customs duty in any convertible foreign currency at a rate
equivalent to Rs.220/- per 10 grams of gold. |
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How often can a
NRI bring gold into India? |
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A NRI can bring
gold into India once in six months. |
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Is it necessary
that the NRI should have stayed abroad at least for a minimum period of six
months prior to his return to India for being eligible to bring gold?
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Yes. |
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Import
of Silver by NRI's
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Can NRIs bring
silver into India? |
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Yes. NRIs can bring
to India silver upto 100 kilograms as part of their personal baggage.
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What is the rate
of duty payment on such import? |
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The rate of duty on
import of silver is Rs. 500 per kilogram which is payable in foreign currency.
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Can NRI's bring
both gold and silver? |
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Yes. |
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Can NRIs sell
gold/silver imported by them to residents? |
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Yes. Gold/silver so
brought by NRIs can be sold to residents against payment in rupees. Reserve Bank
has granted general permission to persons resident in India to make payment to
NRIs in Indian rupees by means of a crossed cheque in India and that such rupees
are credited to Ordinary Non-resident Rupee (NRO) account of the NRI seller.
Source: Reserve Bank of India
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