Are debits and credits to NRO accounts allowed freely by banks maintaining the accounts?
Yes. Debits for local payments are allowed freely. Funds representing legitimate dues of the account holder or proceeds of remittances received from abroad through banking channels are permitted to be credited freely. Debits to the accounts for the purpose of investment in India and credits representing sale proceeds of investments are allowed subject to the accountholder giving an undertaking at the time of opening the account to the effect that such investments/disinvestments would be covered either by the general or special permission of Reserve Bank.
What are the admissible debits and credits to NRE accounts?
Debits for local payments/investments are allowed freely. Credits to an account, of funds emanating from a local source would be permissible only if the funds are of a repatriable nature i.e. funds which are eligible to be remitted abroad.
Can funds in NRE/NRO/NRSR accounts be repatriated outside India?
Funds held in NRE accounts can be repatriated abroad freely. Funds held in NRO accounts which would generally be from local source cannot be repatriated outside India. Funds held in NRSR account also cannot be repatriated. (Please also see Answers to Questions 61 and 62).
Can funds in NRE/NRO/NRSR accounts be utilised for payment of air fare to/from and other travel related expenses in India of the account holder and/or his dependents?
Yes. Banks maintaining such accounts have been authorised to permit such payments. Airlines/shipping companies and their agents have also been permitted to accept payments in rupees.
Are temporary overdrawings permitted in NRO Savings Bank accounts?
Yes. Authorised dealers may allow such overdrawings up to Rs. 20,000/- subject to the condition that the overdrawings together with the interest payable thereon are cleared within a period of two weeks.
MORE
|
|
