Property transaction Norms for NRIs, eased by RBI

The Reserve Bank of India (RBI) recently allowed Indians who have non-resident accounts in India to hold them in any currency which is fully convertible. This decision by RBI is likely to assist NRIs/PIOs (Persons of Indian Origin) as it will give them more options in the holding of accounts, and diminish the peril from variations in chief currencies. The central bank mentioned that Authorized Dealer banks in India can accept FCNR (B) deposits in any allowed currency. The Committee to Review the Facilities for Individuals under Foreign Exchange Management Act recommended that FCNR(B) accounts may be opened in any freely convertible currency.

In an additional relaxation the RBI made that any citizen who was formerly residing in a foreign country can own or transfer property or other assets in that country if it was acquired during the time of his residence there.

Previously, Foreign Currency (Non-Resident) Account (Banks) (FCNR(B)) account holders were allowed to hold accounts in only certain currencies such as the Pound Sterling, US dollar, Japanese yen, euro, Canadian dollar and Australian dollar Permitted currency implies a foreign currency which is freely convertible.