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October 2024

Bank Accounts and Repatriation Facilities for Non-Residents

By Hardik Mehta | Arwa Mahableshwarwala, Chartered Accountants
Reading Time 33 mins

In this article, we have discussed the rules and regulations related to NRO, NRE, FCNR and other accounts pertaining to Non-residents under Foreign Exchange Management Act, 1999 (FEMA).

BANK ACCOUNTS

Opening, holding and maintaining accounts in India by a person resident outside India is regulated in terms of 6 section 6(3) of the FEMA, 1999 read with Foreign Exchange Management (Deposit) Regulations, 2016 (‘Deposit Regulations’) issued vide Notification No. FEMA 5(R)/2016-RB dated 1st April, 2016, Master Direction - Deposits and Accounts FED Master Direction No. 14/2015-16 dated 1st January, 2016 and FAQs on Accounts in India by Non-residents, updated from time to time, provides further guidance on the same.

An Authorised Dealer (AD) bank is permitted to open in India the following types of accounts for persons resident outside India:

i) Non-Resident (External) Account Scheme (NRE account) for a non-resident Indian (NRI) – Schedule 1 of the Deposit Regulations;

ii) Foreign Currency (Non-Resident) Account Banks Scheme, (FCNR(B) account) for a non-resident Indian – Schedule 2 of the Deposit Regulations;

iii) Non-Resident (Ordinary) Account Scheme (NRO account) for Read More

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