Quick summary An NRE account is a rupee account for NRIs/OCIs to park overseas earnings in India with full repatriation and tax‑free interest while they remain non‑resident under FEMA, subject to specific opening, operation, and conversion rules on change in residency status. What is an NRE account Purpose and use-cases Eligibility Key features Tax…
The PSB Alliance, a joint initiative of all 12 Public Sector Banks (PSBs) in India, is set to launch a new digital platform in January 2026 to simplify credit access for Micro, Small, and Medium Enterprises (MSMEs). The upcoming platform will create a unified digital ecosystem connecting small businesses, fintechs, and partner organizations with PSBs,…
A wide range of civil actions in India are time-barred if not initiated within the specific periods prescribed by the Limitation Act, 1963; notably, execution of most civil decrees must be filed within 12 years from when the decree becomes enforceable, while perpetual injunction decrees have no limitation for enforcement. For banking and recovery practitioners,…
The Limitation Act, 1963 prescribes specific time limits within which legal actions must be initiated. For banks and financial institutions, understanding these timelines is crucial for debt recovery, enforcement of securities, filing suits, and responding to customer claims. Failure to act within the prescribed limitation period may result in the claim becoming time-barred, rendering it…
NRO (Non-Resident Ordinary) deposits are rupee-denominated accounts that allow NRIs/OCIs to hold and manage income accruing in India (such as rent, dividends, pension, interest), with repatriation of current income permitted and repatriation of principal subject to limits and documentation. These deposits can be opened as savings/current/term deposits, are subject to Indian taxation, and follow FEMA/RBI…
Foreign Currency Non-Resident [Bank] deposits, commonly called FCNR(B) deposits, are term deposits maintained in designated foreign currencies with Indian banks by eligible non-residents, offering full repatriability of principal and interest and insulation from INR exchange risk during the tenor. These deposits can generally be opened for tenors from 1 to 5 years, with interest payment/compounding…
Closing a Foreign Currency Non-Resident [Bank] [FCNR(B)] deposit in India is governed by RBI’s FCNR(B) Scheme and bank-specific policies, with distinct rules for premature closure, closure at maturity, repatriation, and treatment upon return to India for permanent settlement. The key principles are: premature closure is permitted with penalties and, if closed before one year, no…
The Union Cabinet has approved the Credit Guarantee Scheme for Exporters (CGSE), authorising the National Credit Guarantee Trustee Company Limited (NCGTC) to extend 100% credit guarantee coverage to Member Lending Institutions (MLIs) for additional credit facilities of up to ₹20,000 crore to eligible exporters, including those in the MSME segment. The scheme is expected to…
India’s central bank has amended the export regulations under FEMA to give exporters more time to realise proceeds and fulfil shipment commitments amid global trade disruptions that have delayed payments and logistics, thereby easing short‑term cash‑flow pressures on firms engaged in goods, software, and services exports. The changes are designed to mitigate the impact of…
*( Ref: RBI Circular No. RBI/2025-26/96/DOR.STR.REC.60/21.04.048/2025-26 dated November 14, 2025) The Reserve Bank of India has issued the RBI (Trade Relief Measures) Directions, 2025 to ease debt-servicing pressures for export-oriented borrowers affected by global trade disruptions. The framework, which applies with immediate effect, enables regulated entities to offer (i) a time-bound moratorium or deferment on…
