Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency Accounts that can held by an non-resident in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the various types of Foreign Currency Accounts that can opened by a Non-resident in India and the related conditions.
To gain knowledge on various reports and forms prescribed by RBI for transactions undertaken under the ambit of FEMA. In this Webinar we shall look into various reports and forms which are to be submitted by or through Authorised persons/ dealers in specific cases like Foreign investment, Overseas Direct Investment, External Commercial Borrowings.
To gain knowledge on various reports and forms prescribed by RBI for transactions undertaken under the ambit of FEMA. In this Webinar we shall look into various reports and forms which are to be submitted by or through Authorised persons/ dealers in specific cases like Foreign investment, Overseas Direct Investment, External Commercial Borrowings.
Objectives & Agenda :
The Regulations under FEMA regulate the Export transactions of Goods, Services and Currencies. In this Webinar we shall understand the Definition of the term 'Export', 'Services' and 'Currencies'. We will also look at various procedures and compliances involved while Exporting goods or services or currencies.
Objectives & Agenda :
The Regulations under FEMA regulate the Export transactions of Goods, Services and Currencies. In this Webinar we shall understand the Definition of the term 'Export', 'Services' and 'Currencies'. We will also look at various procedures and compliances involved while Exporting goods or services or currencies.
Impact due to change in residential status - FEMA perspectiveDVSResearchFoundatio
Key Takeaways:
Various bank accounts
ODI and FDI investments
Property held in India and Outside India
Loan transactions
Demat, Insurance policies and PPF accounts
Legal landscape for Non Resident Indians (NRI's) in IndiaRaghu Babu Gunturu
This Article has been designed to provide at a glance, the various investment opportunities which are available to a Non-Resident Indians in shares/securities of Indian companies/firms, in immovable properties in India along with a few Frequently asked questions on the subject.
Objectives
Introduction
What is Remittance???
Who are Non-residents???
Relevant Notifications and Circulars
Which assets can be remitted?
How are assets remitted?
Legal Compliances (In special cases)
Foreign Currency and Foreign Currency Accounts for Residents under FEMADVSResearchFoundatio
Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency that can held by an individual in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the regulation which governs the possession of foreign currency in India and the various types of Foreign Current Accounts that can opened by an Indian resident and the related conditions.
Non-resident Indians are a section of people whose roots belong to India and who have migrated from India. The Indian Government is aware of the importance of Indian Diaspora in the form of NRIs/PIOs which is spread all across the world and which despite being away from India is making significant contribution to the Indian economy on a global platform and to the economic, financial and social benefits which have been brought to India; therefore, it attempts to provide benefits to them to attract their investments. They are also called for taking part in the economy. The Indian government gives lot of benefits to NRI not only with respect to ease of making investment in India but also in Taxation. The investment from NRIs is easy money available and provides the much needed leverage to the economy. The Indian Diaspora today constitutes an important, and inimitable, part of the Indian economy. The PPT discusses about he various account that can be opened by NRIs in India
Objectives & Agenda :
The Regulations under FEMA regulate a transaction based on whether the transaction is a 'Capital Account Transaction' or a 'Current Account Transaction'. In this Webinar we shall understand the Definition of the terms 'Capital Account Transactions' and 'Current Account Transactions'. We will also look at various transactions covered and the limits applicable to such transactions.
SCRAPPING OF RETRO TAX PROVISIONS : A REVIVAL OF OVERSEAS INTEREST IN INDIADVSResearchFoundatio
Key Takeaways:
- Scrapping of Restrospective effect of Taxation
- Indirect transfer of assets not taxable before 28th May 2012
- Vodafone case analysis
- Draft notification to implement the amendment
Key Takeaways: - Analysis of section 45(4), section 9B of the Income Tax Act...DVSResearchFoundatio
Key Takeaways:
- Analysis of section 45(4), section 9B of the Income Tax Act and Rule 8AA and Rule 8AB of Income Tax Rules
- Illustrations to understand the relevant impact
- Critical Issues concerned with the provisions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
FALLACIOUS DISREGARDING OF TRANSACTIONS THAT RESULT IN A TAX BENEFIT TO THE A...DVSResearchFoundatio
Key Takeaways:
- Facts of the case
- AO's contention
- Ruling of CIT(A) and issues for consideration of the ITAT
- Observations of ITAT
- Final Ruling
- Way Forward
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
Key Takeaways:
- Facts and issues of the case
- Rationale behind the section
- Ruling of lower jurisdiction authorities
- Rival submissions before the Honourable Supreme Court
- Observations and final rulings of Honourable Supreme Court
- Way Forward
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
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𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
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3. Legends used in the Presentation
AD Authorised Dealer
CBDT Central Board of Direct Taxes
FCNR(B) Foreign Currency (Non-resident) Account (Banks)
FEM Foreign Exchange Management
FEMA Foreign Exchange Management Act, 1999
FDI Foreign Direct Investment
FRO Foreigner Registration Office
FRRO Foreigner Regional Registration Office
LRS Liberalised Remittance Scheme
NBFC Non-Banking Finance Company
NRE Non-resident External
NRI Non-resident Indian
NRO Non-Resident (Ordinary)
OCI Overseas Citizen of India
ODI Overseas Direct Investment
PIO Person of Indian Origin
POA Power Of Attorney
RBI Reserve Bank of India
SEBI Securities Exchange Board of India
SNRR Special Non-Resident Rupee
UJV Unincorporated Joint Ventures
4. Presentation Schema
Introduction Definitions
Non-Resident
(External) Rupee
Account Scheme -
NRE Account
Foreign Currency
(Non-resident)
Account (Banks)
Scheme – FCNR (B)
Account
Non-Resident
(Ordinary) Account
Scheme – NRO
account
Special Non-Resident
Rupee Account -
SNRR Account
Escrow Account
Acceptance of
Deposits by Indian
Entities
Other Accounts/
Deposits
Exemptions
5. Introduction
The Foreign Exchange Management Act, 1999 (FEMA) empowers the RBI to frame
regulations to restrict, regulate and prohibit the maintenance of deposits between a
person resident in India and a person resident outside India
Opening, holding and maintaining accounts in India by a Non-resident and acceptance of
Deposits from Non-residents are regulated by Master Direction No. 14/2015-16 – Deposits
and Accounts
6. Definitions
Means any currency other than Indian currencyForeign Currency
Means currency which is expressed or drawn in Indian rupees but does not include
special bank notes and special one rupee notes issued under section 28A of the RBI ActIndian currency
Is an investment, the sale/ maturity proceeds of which are, net of taxes, eligible to be repatriated
'Investment on non-repatriation basis', will be construed accordingly.
Investment on
repatriation basis
Includes deposit of money with a bank, company, proprietary concern, partnership
firm, corporate body, trust or any other personDeposit
7. Definitions
Is a Non-resident who is a citizen of foreign country (except a national of Pakistan, Afghanistan, Bangladesh,
China, Iran, Bhutan, Sri Lanka and/or Nepal), satisfying the following conditions:
a) Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
b) Who belonged to a territory that became part of India after the 15th day of August, 1947; or
c) Who is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in clause
(a) or (b); or
d) Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in
clause (a) or (b) or (c)
Explanation: PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of
the Citizenship Act, 1955
Person of Indian Origin (PIO)
Is a person resident outside India who is a citizen of India
Non-resident Indian (NRI)
8. Non-Resident (External) Rupee Account Scheme - NRE Account
Non-resident Indians (NRIs) and Person of Indian Origin (PIOs) are permitted to open and maintain these
accounts with ADs and with banks (including cooperative banks) authorised by the RBI
Form of Account – Any Form e.g. savings, current, recurring or fixed deposit account etc.
Joint account – can be opened by 2 or more NRIs and/or PIOs or by an NRI/PIO with a resident relative(s) on
‘former or survivor’ basis.
However, during the life time of the NRI/PIO account holder, the resident relative can operate the account only
as a Power of Attorney holder.
Remittances - Inward remittances to the account and remittances outside India from NRE account are permitted
Permitted Credits – Interest accruing on the account, interest on investment, transfer from other NRE/ FCNR(B)
accounts, maturity proceeds if investments were made from this account or through inward remittance
Current income like rent, dividend, pension, interest etc. will be construed as a permissible credit provided the
AD is satisfied that the credit represents current income of the NRI/PIO account holder and income tax thereon
has been deducted/ paid
Permitted Debits - Local disbursements, transfer to other NRE/ FCNR(B) and investments in India.
“Former or survivor” - This is a type of joint account where only the former account holder, the first holder, can withdraw funds
from the account. Once the former account holder dies only then the second account holder will be able to withdraw funds.
9. Relative – Sec 2(77) of Companies Act, 2013
Relative
Members of
HUF
Related person
Rule 4
Father Mother
Son &
Daughter
Son’s wife &
Daughter’s
husband
Brother Sister
Husband &
Wife
Includes Step-Father, Step-Mother, Step-Son, Step-Brother & Step-Sister
10. Sanction of Loans Against Funds in NRE Account
ADs/ banks in India can grant loans against the security of the funds held in NRE accounts to the
account holder/ third party in India, without any limits, subject to the usual margin requirements
The loan cannot be repatriated outside India and shall be used for the following purposes:
Personal purposes or for carrying on business activities
Exceptions: Re-lending or agricultural/ plantation activities or investment in real estate business
Acquiring flat/ house in India for own residential use subject to FEMA Regulations
Making direct investment in India on non-repatriation basis by way of contribution to the Capital
of Indian firms/ companies subject to FEMA Regulations
Loans sanctioned to 3rd Party - there should be no direct or indirect foreign exchange
consideration for the non-resident depositor agreeing to pledge his deposits to enable the
resident individual/ firm/ company to obtain such facilities
Margin Requirements - Margin means that proportion of the value of security against which loan is not given
11. Contd.
Loan sanctioned to the account holder - can be repaid either by
• adjusting the deposits or
• through inward remittances from outside India through banking channels or
• out of balances held in the NRO account of the account holder
“loan” shall include all types of fund based/ non-fund based facilities
Facility for premature withdrawal of deposits will not be available where loans against such deposits are availed
and also agree for remittance of the funds from India, if necessary, for
liquidation of the outstanding
against the security of funds held in the NRE accounts in India
at the request of depositor for bona fide purpose
to or in favour of non-resident depositor or to third parties
ADs may allow their branches/ correspondents outside India to grant loans
12. Other Conditions Relating to NRE Account
Return of the account
holder to India
NRE accounts should be designated as resident accounts or the funds held in these
accounts may be transferred to the RFC accounts, at the option of the account holder,
immediately upon their return to take up employment or change in residential status
Demise of an
account holder
• Balances can be transferred to the non-resident nominee of the deceased account holder.
• However, request from a resident nominee for remittance of funds outside India for meeting
the liabilities, if any, of the deceased account holder or for similar other purposes, should be
forwarded to the RBI for consideration.
Operations
on an NRE
account by
Resident
• May be allowed in terms of POA or other authority granted in favour of a resident provided such
operations are restricted to withdrawals for local payments or remittance to the account holder
himself through banking channels
• In cases where the account holder or a bank designated is eligible to make investments in India,
the POA holder may be permitted to operate the account to facilitate such investment.
13. Contd.
Income from interest on balances standing to the credit of NRE Accounts is exempt from Income Tax
(Sec 10(4)(ii) of Income-tax Act, 1961)
Restriction
on Resident
POA Holder
The resident POA holder is not allowed to
(a) Open a NRE account
(b) Repatriate outside India funds held in the account other than to the account holder himself
(c) Make payment by way of gift to a resident on behalf of the account holder
(d) Transfer funds from the account to another NRE account.
Rate and
Tenure
The rate of interest and tenure applicable to these accounts will be in accordance with
the directions/ instructions issued by the Department of Banking Regulations, RBI
14. Foreign Currency (Non-resident) Account (Banks) Scheme –
FCNR (B) Account
Deposits may be accepted in any permissible currency
The accounts can be maintained only in the form of fixed deposit
Other conditions such as credits/debits, joint accounts, loans / overdrafts, operation by power of
attorney etc., as applicable to an NRE account will be applicable to FCNR (B) account as well
The rate of interest and tenure applicable to these accounts will be in accordance with the
directions/ instructions issued by the Department of Banking Regulation, RBI
Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are permitted to open and
maintain FCNR(B) accounts with ADs and banks authorised by the RBI
co-operative banks not authorised unlike NRE Account
15. Non-Resident (Ordinary) Account Scheme – NRO account
Any Non-resident may open and maintain NRO account with an AD or an Authorised Bank
for the purpose of putting through bona fide transactions denominated in Indian Rupees
Post Offices in India may maintain savings bank accounts in the names of Non-residents and allow
operations on these accounts subject to the same terms and conditions as are applicable to NRO accounts
NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India
- with funds remitted from outside India through banking channel or
- by sale of foreign exchange brought by him to India.
The balance in the NRO account may be paid to the account holder at the time of his departure from India
- provided the account has been maintained for a period not exceeding 6 months and
- the account has not been credited with any local funds, other than interest accrued thereon
Form of Account Any form, e.g. savings, current, recurring or fixed deposit account
Joint Account
• May be held jointly with residents on ‘former of survivor’ basis
• NRIs and PIOs may hold an NRO account jointly with other NRIs and PIOs
16. Contd.
Permitted
Debits
• Local payments
• transfers to other NRO accounts or
• remittance of current income abroad
• Balances in the NRO account cannot be repatriated abroad except by NRIs and PIOs up to USD 1
million, subject to conditions under FEMA
• Funds can be transferred to NRE account within this USD 1 Million facility
Loans against
the deposits
• Can be granted in India to the account holder or third party subject to usual norms and
margin requirement
• Loan amount shall not be used for relending, carrying on agricultural/plantation activities or
investment in real estate
Permitted
Credits
• Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts
• Rupee gift/ loan made by a resident to a NRI/PIO relative within the limits prescribed under the LRS
Conversion of
Accounts
• NRO accounts may be designated as resident accounts on the return of the account holder
to India for any purpose indicating his intention to stay in India for an uncertain period
• When a resident Indian becomes a Non-resident, his existing resident account should be
designated as NRO account
17. Contd.
Operation through
POA by a Resident
Allowed provided such operations are restricted to local payments
and remittances to non-residents
• AD banks have been permitted to issue International Credit Cards to NRIs/PIOs,
without prior approval of RBI
• Such transactions may be settled by inward remittance or out of balances held in the
cardholder’s FCNR (B) / NRE / NRO Accounts
International
Credit Cards
Income-Tax
• The remittances (net of applicable taxes) will be allowed to be made by the AD banks on
production of requisite information in the formats prescribed by CBDT
• RBI will not issue any instructions under FEMA, clarifying tax issues
• ADs shall comply with the requirement of tax laws, as applicable
18. Repatriation for Foreign Nationals
subject to the bank satisfying itself that the credit of amounts are bona fide dues of the account holder when she/ he was a
resident in India.
on leaving the country after their employment to enable them to receive their pending bona fide dues,
AD Category-I banks may permit foreign nationals to re-designate their resident account maintained in India as NRO account
To facilitate foreign nationals to collect their pending dues in India,
The funds credited to the NRO account should be repatriated abroad immediately, subject to payment of the
applicable income tax and other taxes in India.
The amount repatriated abroad should not exceed USD 1 million per financial year.
The debit to the account should be only for the purpose of repatriation to the account holder’s account
maintained abroad.
The account should be closed immediately after all the dues have been received and repatriated as per the
declaration made by the account holder when the account was designated as an NRO account
19. Opening of NRO Accounts by Individuals / Entities of Specified
Countries
Opening of accounts by individuals and entities of Pakistan and Bangladesh require prior approval of the RBI
However, individuals of Bangladesh nationality may be allowed to open these accounts subject to the
individual/s holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/
Foreigner Regional Registration Office (FRRO)
ADs may open one Non-Resident Ordinary (NRO) Account for a citizen of Bangladesh or Pakistan,
belonging to minority communities (namely Hindus, Sikhs, Buddhists, Jains, Parsis and Christians) in those
countries residing in India and who has been granted a Long Term Visa (LTV) by the Central Government
- Account will be converted to a resident account once such a person becomes a citizen of India
- Can also be opened if such person has applied for LTV subject to additional conditions prescribed by
Central Government
20. SNRR account shall carry the name of the specific business for which it is opened and shall not earn any interest
Debits / credits and the balances in the account shall be incidental and commensurate with the business
operations of the account holder
ADs should ensure that all the operations in the SNRR account are in accordance with FEMA
Tenure of the SNRR account should be concurrent to the tenure of the contract/ period of operation/ the
business of the account holder and in no case should exceed 7 years
Approval of the RBI shall be obtained in cases requiring renewal
However, the restriction of 7 years will not be applicable to SNRR accounts opened by Non-residents for the
purpose of making investment in India in accordance with FEMA Regulations for FDI
Special Non-Resident Rupee Account - SNRR Account
Any Non-resident, having a business interest in India, may open a Special Non-Resident Rupee Account (SNRR account)
with an AD for the purpose of putting through bona fide transactions in rupees in accordance with FEMA regulations
21. Contd.
Operations in the SNRR account should not result in the account holder making available foreign exchange
to any person resident in India against reimbursement in rupees or in any other manner
The balances in the SNRR account shall be eligible for repatriation and transfers from any NRO account to
the SNRR account are prohibited
All transactions in the SNRR account will be subject to payment of applicable taxes in India
SNRR account may be designated as resident rupee account on the account holder becoming a resident
The amount due/ payable to non-resident nominee from the account of a deceased account holder, will be
credited to NRO account of the nominee with an AD/ authorised bank in India
Opening of SNRR accounts by Pakistan and Bangladesh nationals and entities incorporated in Pakistan and
Bangladesh requires prior approval of RBI
22. Escrow Account
Resident or non-resident corporate/ acquirers may open Escrow account in INR with an AD
in India as an Escrow agent subject to FEMA regulations
Transactions shall be in accordance with the FEM (Transfer or Issue of Security by a Non-
resident) Regulations, 2017 and relevant regulations issued by the SEBI.
The accounts shall be non-interest bearing.
No fund/ non-fund based facility would be permitted against the balances in the account.
An escrow account is an account where funds are held in trust whilst two or more parties complete a transaction
23. Acceptance of Deposits by Indian Entities
By a company in
India from NRIs/PIOs
on repatriation basis
• A company incorporated in India including, NBFC registered with the RBI, cannot accept
deposits on repatriation basis
• It can, however, renew the deposits it had accepted in accordance with FEMA regulations
By Indian proprietorship concern/
firm or a company from NRIs or
PIOs on non-repatriation basis
An Indian proprietorship concern/ firm or a company (including NBFC)
registered with RBI can accept deposits from NRIs or PIOs on non-repatriation
basis subject to terms and conditions under FEMA Regulations
By Indian companies from a
Non-resident for nomination
as Director
• Keeping deposits with an Indian company by Non-residents, in accordance with
provisions of Companies Act, 2013, is a current account (payment) transaction and,
as such, does not require any approval from RBI
• All refunds of such deposits, arising in the event of selection of the person as
director or getting more than 25% votes, shall be treated similarly
Companies Act requires a person nominating himself or another person as a director to deposit Rs 1 lakh
for that purpose, which shall be refunded if the person gets elected or gets 25% of the votes
24. Other Accounts/ Deposits
A deposit made by an AD with its branch, head office or correspondent outside India, and a deposit made by a branch or
correspondent outside India of an AD, and held in its books in India, will be governed by the directions issued by the RBI
• A shipping or airline company incorporated abroad, can open, hold and maintain a Foreign Currency
Account with an AD for meeting the local expenses in India of such airline or shipping company.
• The credits permitted to such accounts are only freight or passage fare collections in India or by
inward remittances through banking channels from its office outside India
An AD may allow Unincorporated Joint Ventures (UJV) of foreign companies/ entities, with Indian entities,
executing a contract in India, to open and maintain non-interest-bearing foreign currency account and an
SNRR account for the purpose of undertaking transactions in the ordinary course of its business
An AD in India may allow a Foreign Portfolio Investor and a Foreign Venture Capital Investor, both registered with
the SEBI, to open and maintain a non-interest bearing foreign currency account for the purpose of making investment
in accordance with FEM (Transfer or issue of security by a Non-resident) Regulations
ADs may provide nomination facility in respect of the deposits/ accounts in these regulations
maintained by individual account holders
25. Exemptions
Restrictions under the Master Direction are not applicable for the following
Deposits in rupee accounts and special rupee accounts maintained by foreign diplomatic
missions and diplomatic personnel
Foreign currency accounts maintained by diplomatic missions, diplomatic personnel and non-diplomatic staff
who are the nationals of the concerned foreign countries and hold official passport of foreign embassies in India
Conditions
• Permissible credits
o Inward remittances received from abroad through banking channels
o Transfer of funds, from rupee account in India, which are collected in India as visa fees
• Funds converted in rupees cannot be converted back into foreign currency
• The account may be held in the form of current or term deposit account, and in the case of diplomatic
personnel and non-diplomatic staff, may also be held in the form of savings account
• The rate of interest on savings or term deposits - as may be determined by the AD maintaining the account
• The funds in the account may be repatriated outside India without the approval of RBI
Deposits with AD maintained in rupees by persons resident in Nepal and Bhutan
Deposits with AD maintained by any multilateral organization and its subsidiary/
affiliate bodies and officials in India, of which India is a member nation