Key Updates and Clarifications
The Reserve Bank of India has issued a Master Direction, updated as of November 12, 2018, which provides clarifications and updates on various aspects of foreign exchange transactions.
Remittances to Non-Residents: The direction reiterates the requirement of deduction of tax at source for remittances to non-residents.
Repatriation of Income and Sale Proceeds: Clarification has been provided on the repatriation of income and sale proceeds of assets held abroad by NRIs who have returned to India for permanent settlement, as well as those acquired through the Liberalised Remittance Scheme.
Resident Bank Accounts: Joint holders of resident bank accounts in India have been liberalized.
Meeting Medical Expenses: Resident individuals are allowed to meet the medical expenses of their NRI close relatives.
Routing of Funds: The direction provides guidance on the routing of funds raised abroad to India.
Constitution of Special Investigating Team: The sharing of information with the Special Investigating Team has been addressed.
Inoperative Foreign Currency Deposits: The direction deals with the crystallization of inoperative foreign currency deposits, with a focus on depositor education and awareness.
Chat with the Master Direction:
Download: Master Direction – Miscellaneous (Updated as on November 12, 2018)