Professional Documents
Culture Documents
By Resident
Individuals
in India
currency accounts by a person resident
Foreign Exchange Management (Foreign
Foreign Currency
account in India
By other
By Person
resident in India
BY Resident
Individuals
Account
maintained
Account outside India By Others
By NRI/PIOs
By Person
resident outside Foreign Exchange Management
India (Deposit) Regulations, 2016
By others
Account
By Person resident outside India
By Resident
Individuals
in India
currency accounts by a person resident
Foreign Exchange Management (Foreign
Foreign Currency
account in India
By other
By person
resident in India
BY Resident
Individuals
Account
maintained
Account outside India By Others
By NRI/PIOs
By Person
resident outside Foreign Exchange Management
India (Deposit) Regulations, 2016
By others
Foreign Exchange Management
(Deposit) Regulations, 2016
FCNR(B) account
NRE account
NRO account
Escrow Account
Credits Debit
Inward remittance to India in permitted currency local disbursements
proceeds of account payee cheques, demand transfer to other NRE / FCNR accounts of person
drafts / bankers' cheques, issued against eligible to open such accounts,
encashment of foreign currency remittance outside India,
transfers from other NRE / FCNR accounts investments in shares / securities/commercial
sale proceeds of FDI investments paper of an Indian company, etc.
interest accruing on the funds held in such
accounts
interest on Government securities/dividends on
units of mutual funds purchased by debit to the
NRE/FCNR(B) account of the holder, certain types
of refunds, etc.
NON RESIDENT (ORDINARY) RUPEE
ACCOUNT
Credits Debit
Proceeds of remittances from outside India through All local payments in rupees including payments for
normal banking channels received in any permitted investments in India subject to compliance with the
currency. relevant regulations made by the Reserve Bank.
Any foreign currency, which is freely convertible, Remittance outside India of current income like rent,
tendered by the account holder during his temporary dividend, pension, interest, etc. in India of the account
visit to India. holder.
Transfers from rupee accounts of non-resident banks. Remittance up to USD one million, per financial year
Legitimate dues in India of the account holder. This (April- March), for all bona fide purposes, to the
includes current income like rent, dividend, pension, satisfaction of the Authorised Dealer bank.
interest, etc. Transfer to NRE account of NRI within the overall
Sale proceeds of assets including immovable property ceiling of USD one million per financial year subject to
acquired out of rupee / foreign currency funds or by way payment of tax, as applicable
of legacy /inheritance.
Resident individual may make a rupee gift to a NRI/PIO
who is a close relative of the resident individual [close
relative as defined in Section 6 of the Companies Act,
1956] by way of crossed cheque /electronic transfer. The
amount shall be credited to the Non-Resident (Ordinary)
Rupee Account (NRO) a/c of the NRI / PIO and credit of
such gift amount may be treated as an eligible credit to
FOREIGN CURRENCY NON RESIDENT
(BANKS) ACCOUNT
Accounts can be
Risk of foreign
opened by remittance
Repatriable exchange fluctuations
of funds in free
borne by Bank
foreign exchange.
PERMISSIBLE DEBITS/CREDITS FCNR
(B) A/C
Credits Debit
Inward remittance to India in permitted currency local disbursements
proceeds of account payee cheques, demand transfer to other NRE / FCNR accounts of person
drafts / bankers' cheques, issued against eligible to open such accounts,
encashment of foreign currency remittance outside India,
transfers from other NRE / FCNR accounts investments in shares / securities/commercial
sale proceeds of FDI investments paper of an Indian company, etc.
interest accruing on the funds held in such
accounts
interest on Government securities/dividends on
units of mutual funds purchased by debit to the
NRE/FCNR(B) account of the holder, certain types
of refunds, etc.
Special Non-Resident Rupee Account -
SNRR account
Transactions subject
NEW Schedule 4 Repatriable
to Taxes
ESCROW ACCOUNT
Foreign Inward
Non resident or remittance through Operational for 6
Resident together Normal Banking months
with non resident channel
Repatriable
NEW Schedule 5 Non interest bearing (exchange risk to be
born by Non
resident)
LOAN AGAINST THE DEPOSIT
LOAN AGAINST DEPOSIT IN NRE A/C
To the account
permitted
Holder
In INR
To third party Permitted
In India
To the account
Permitted
holder
In Foreign
Currency
loan To third party Permitted
To the account
Permitted
holder
Outside India
To third party Permitted
LOAN AGAINST DEPOSIT IN FCNR(B)
To the account
Holder permitted
In INR
To third party Permitted
In India
To the account
holder Permitted
In Foreign
Currency
loan To third party Permitted
To the account
holder Permitted
Outside India
To third party Permitted
LOAN AGAINST DEPOSIT IN NRO A/C
Permitted subject
To the account Holder
to extant Rules
In INR
Permitted subject
To third party
to conditions
In India
In Foreign Currency
Outside India
To
Fund based and / or non-fund based facilities for personal purposes or for carrying on business
Third
activities *.
Party
Abroad Fund based and / or non-fund based facilities for bonafide purposes.
*The loans cannot be utilised for the purpose of on-lending or for carrying on agriculture or plantation
activities or for investment in real estate business.
PURPOSE OF LOAN NRO ACCOUNT
Resident individual to lend to a Non-resident Indian (NRI)/ Person of Indian Origin (PIO) close
relative [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed
cheque /electronic transfer.
The loan amount should be credited to the NRO a/c of the NRI /PIO. Credit of such loan
amount may be treated as an eligible credit to NRO a/c;
A Comparison
in India
currency accounts by a person resident
Foreign Exchange Management (Foreign
By Resident
Individuals
Foreign Currency
account in India
By other
By person
resident in India
BY Resident
Individuals
Account
maintained
Account outside India By Others
By NRI/PIOs
By Person
resident outside Foreign Exchange Management
India (Deposit) Regulations, 2016
By others
Foreign Exchange Management (Foreign currency accounts
by a person resident in India 2016
organisers of international
seminars etc
Foreign Exchange Management (Foreign currency accounts by a
person resident in India 2016
Exporters
Salary
Type of Accounts
EXCHANGE
EARNERS
FOREIGN
CURRENCY
ACCOUNTS
RFRESIDENT
FOREIGN
CURRENCY
ACCOUNT
RESIDENT FOREIGN
CURRENCY
(DOMESTIC)
ACCOUNT
EXCHANGE EARNERS FOREIGN
CURRENCY ACCOUNTS
Inward remittance through normal banking channels, other than remittances received on
account of foreign currency loan or investment received from abroad or received for meeting
specific obligations by the account holder;
Payments received in foreign exchange by a 100 per cent Export Oriented Unit or a unit in
(a) Export Processing Zone or
(b) Software Technology Park or
(c) Electronic Hardware Technology Park for supply of goods to similar such units or to a unit in Domestic Tariff Area;
Payments received in foreign exchange by a unit in the Domestic Tariff Area for supply of goods
to a unit in the Special Economic Zone (SEZ);
Payment received by an exporter from an account maintained with an authorised dealer for the
purpose of counter trade.
Advance remittance received by an exporter towards export of goods or services;
Professional earnings including directors fees, consultancy fees, lecture fees, honorarium and
similar other earnings received by a professional by rendering services in his individual
capacity;
Re-credit of unutilised foreign currency earlier withdrawn from the account;
Amount representing repayment by the account holder's importer customer, of loan/advances
granted, to the exporter holding such account etc.
Permissible debits
Permissible credits :
The foreign exchange received as:
pension of any other superannuation or other monetary benefits from the
employer outside India;
realised on conversion of the assets acquired, held or owned by such
person when he was resident in India or inherited from a person who was
resident in India
received or acquired as gift or inheritance from a person who was resident
outside India
Permissible debits to the RFC account
The funds in RFC account are free from all restrictions regarding
utilization of foreign currency balances including any restriction on
investment outside India.
Foreign securities can also be acquired from RFC account.
The restriction of taking prior approval of government or prior
approval of RBI is not applicable to transactions undertaken out of
RFC account *
*However, the prohibited transactions as specified in Rule 3 of the Foreign Exchange Management (Current Account
Transactions) Rules, 2000 cannot be undertaken at all.
RESIDENT FOREIGN CURRENCY
(DOMESTIC) ACCOUNT
Regulations 5A of Foreign
Exchange Management
Resident Individual may
(Foreign Currency Accounts
open, hold and maintain
by a Person Resident in
India) Regulations, 2000
Permissible Credits
The account can be opened out of foreign exchange acquired in the form of currency notes, Bank
notes and travellers cheques, from any of the sources like:
payment for services rendered abroad;
as honorarium, gift, services rendered;
in settlement of any lawful obligation from any person not resident in India;
proceeds of export of goods and/or services, royalty, honorarium, etc.;
gifts received from close relatives (as defined in the Companies Act);
disinvestment proceeds received by resident on conversion of shares to ADRs/GDRs
proceeds of life insurance policy claims/maturity/ surrender values settled in foreign currency
from an insurance company in India permitted to undertake life insurance business by the
Insurance Regulatory and Development Authority; may also be credited to this account.
Permissible Debits
The account may be debited for payments made towards permissible current and capital account
transactions. At the request of account holder, on change of his status of resident to non resident
the balance in his account can be credited to NRE/FCNR (B) account.
REMITTANCES
Remittance
Schedule I Schedule II
USD 250,000 Subsumes limits
per F.Y under CAT
Prohibited approval from the
GOI
Schedule I Schedule II
Taxpert Professionals Private Limited Mumbai | New Delhi| Kolkata | Bangalore| Bhubaneswar