Master Direction for Borrowing and Lending in Indian Rupee
This Master Direction outlines the guidelines for borrowing and lending transactions in Indian Rupee (INR) between persons resident in India and Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs).
Persons Resident in India borrowing in INR from NRIs/PIOs:
Available routes for borrowing include:
- Borrowing in INR by persons other than companies in India.
- Borrowing in INR by companies in India.
Restrictions apply to the use of borrowed funds.
Reporting Requirements:
Persons resident in India borrowing in INR from NRIs/PIOs must comply with reporting requirements.
Lending by Authorised Dealers in INR to NRIs:
Lending is permitted for:
- Own requirements or own business purposes.
This Master Direction is issued under the Foreign Exchange Management Act, 1999 and is applicable from January 1, 2016.
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