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A. |
OVERSEAS ASSETS |
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Q.1 |
Are
Returning Indians permitted to retain their assets
abroad even after return to India? |
|
Ans. |
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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Q.
2 |
Are
they required to obtain any permission from Reserve
Bank for holding these assets? |
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Ans. |
No. |
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Q.3 |
Do
they enjoy any freedom in regard to utilisation
of these overseas assets? |
|
Ans. |
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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Q.4 |
Can
they bring back the overseas assets to India and
hold them with separate identity? |
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Ans. |
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 Part B Below). |
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B |
RESIDENT FOREIGN
CURRENCY (RFC) ACCOUNTS SCHEME ASSETS |
|
Q.
1 |
What
is the Resident Foreign Currency (RFC) Account
Scheme? |
|
Ans. |
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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|
Q.
2 |
Is
any permission from Reserve Bank required for
opening such accounts with authorised dealers? |
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Ans. |
No. |
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Q.
3 |
In
which currencies can RFC accounts be maintained? |
|
Ans. |
RFC
accounts can be maintained in any convertible
currency. |
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Q.4 |
What
funds can be credited to RFC accounts of Returning
Indians? |
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Ans. |
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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Q.5 |
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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Ans. |
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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Q.6 |
Can
pension received by the account holder from abroad
be credited to his RFC account? |
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Ans. |
Yes.
The entire amount of pension received from abroad
can be credited to his RFC account. |
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Q.
7 |
NRIs
returning to India
for permanent settlement were granted RIFEE facility.
Is this facility still available? |
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Ans. |
No.RIFEE facility has been replaced by the RFC
accounts facility. |
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Q.8 |
Can
funds in RFC accounts be remitted abroad? |
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Ans. |
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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Q.
9 |
Can
funds in RFC accounts be utilised for local payments? |
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Ans. |
Yes.
Funds in RFC accounts can be withdrawn freely
for local payments in rupees. |
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Q.10 |
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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Ans. |
Yes. |
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Q.
11 |
Can
persons who have returned to India after a short
assignment of less than one year open RFC accounts? |
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Ans. |
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. |
