The resident individuals are permitted to make Rupee loan to their close relative who is a NRI/PIO. U/s 2(77) companies act 2013, ‘‘relative’’, with reference to any person, means anyone who is related to another, if (i) they are members of a Hindu Undivided Family; (ii) they are husband and wife; or(iii) one person is related to the other in such manner as may be prescribed below ;
Father (including step-father)
Mother (including step-mother
Son (including step-son)
Son’s wife
Daughter
Daughter’s husband
Brother (including step-brothers)
Sister (including step-sisters)
As per FEMA act 1999 read with Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 and RBI circular A.P. (DIR Series) Circular No. 64 dated February 4, 2004 (as amended from time to time), Such loans to NRI/PIO is permitted subject to following terms and conditions.
Disclaimer: This post is prepared only for the purpose of general information and this is not a legal advice. The author has taken every effort to avoid errors or omissions in this article. The regulations related to loan by resident individuals to NRI/PIO are subject to regulatory amendments from time to time. Hence, in spite of due care taken by the author to avoid mistakes, it is possible that any mistake, errors, ambiguity, inconsistency, discrepancy may inadvertently creep up. Such mistakes or errors noticed by anyone may please be brought to the notice of the author for the rectification. The liability or claim of any nature on account of information provided here for whatsoever cause is not recognized.
Foreign Exchange Remittance limit available to residents
How much money you can carry abroad?
What is current account convertibility?
What is capital account convertibility?
Bank customers can now withdraw cash from ATMs without using physical cards. Even if you…
Economic systems can be classified as Traditional Economies, command economies, market economies, and mixed economies.…
The analysis of financial statements means identifying a business establishment's financial strengths and weaknesses by…
The Reserve Bank of India issued draft guidelines to provide a harmonised prudential framework for…
RBI has recently issued two notifications. The first notification is about Margin for Derivative Contracts…
Economists may define the subject of economics in several ways considering different aspects of the…