The Reserve Bank of India on Thursday announced several relaxations in the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000, which will benefit resident and non-resident Indians (NRIs).
It has decided to hike the limit of transfer by way gift from resident Indians to non-residents. The value of security to be transferred together with any security transferred by the transferor, as gift, to any person residing outside India which was not to exceed the rupee equivalent of $25,000 during a calendar year has been enhanced to $50,000 per financial year, the RBI said on Thursday. Hitherto, a person resident in India who proposes to transfer, by way of gift, to a person outside India any security including shares/convertible debentures is required to obtain prior approval of the RBI.
It has also decided that individuals resident in India may be permitted to include non-resident close relative(s) as a joint holder(s) in their resident bank accounts on ‘former or survivor’ basis. However, such non-resident Indian close relatives will not be eligible to operate the account during the life time of the resident account holder, the RBI said.
The RBI also allowed non-resident Indian to open NRE/FCNR(B) account with their resident close relative on ‘former or survivor’ basis. “The resident, close relative should be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/PIO account holder,” the RBI said.
The RBI has also decided that resident individuals will be permitted to include resident close relative(s) as defined in the Companies Act, 1956 as a joint holder(s) in their EEFC/RFC bank accounts on ‘former or survivor’ basis.