The Foreign Exchange Management Act
(FEMA) came into effect in 1999 after the FERA act was revoked. Here are a few
of its regulations that every nri should know.
Maintaining a bank account
You need to operate bank accounts that are specifically designated for NRIs. It’s advisable to have a trusted and well established banking partner to help you deal with overseas transactions.
Financial Investment
NRIs are allowed to make unlimited investment in repatriable or non-repatriable transactions. The only exceptions are small saving schemes or PPF (Public Provident Fund) that aim to encourage small savings by giving good returns and tax benefits.
Ownership and transfer of immovable
properties
All NRIs and PIOs (Persons of Indian Origin) can purchase any kinds
of commercial and residential real estate property in india.
Income for students
The Liberalized Remittance Scheme
says that Indian students who are NRIs can receive a maximum of US$ 10 lakhs in
a year from their NRO/NRE accounts or from profit gained from any property or
estate. nri students are also eligible to receive US$ 2.5 lakhs per year for
caring of close relations.
Repatriation of current and immovable
assets
An nri can send money back to india gained from foreign repatriable assets like
rent received from a building owned abroad. There are more restrictions on
immovable assets like property and lands because the nri can only be
repatriated on his originally invested foreign fund.
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