Rbi Allows Authorised Dealers To Repatriate Nri, Ocb Monies

Under the fresh norms, ADs should carefully scrutinise the receipts of the NRIs and attach a chartered accountants certificate stating that the income or interest to be repatriated is eligible for remittance

The Reserve Bank of India (RBI) has allowed authorised dealers (AD) to grant permission to non-resident Indians (NRIs) and overseas corporate bodies (OCBs) to repatriate income or interest on non-repatriable investments and deposits.

The move follows representations by ADs who had consistently asked the Reserve Bank of India for these powers be granted to them.

Earlier, the RBI would examine a proposition for such repatriation of funds by an NRI/OCB and grant permission on a case-by-case basis.

 

According to a treasury chief, this policy was followed as the Reserve Bank of India felt that allowing such remittances could potentially have an adverse effect on the economy as funds left the country.

However, ADs say that the incidence of such repatriation of funds is not high.

Hence, there will not be a large impact. Under the fresh norms, ADs, on receipt of the application from NRIs/OCBs, should scrutinise it carefully and satisfy themselves with reference to the particulars furnished.

Moreover, a chartered accountants certificate should also be obtained stating that the income or interest to be repatriated is eligible for remittance. Once these are obtained, the AD may allow the remittance out of the applicants NRO account or credit it to the NRE/FCNR account of the applicant.

However, before allowing the remittance, the AD should ensure that the income tax has been paid and a no-objection/tax clearance certificate has been furnished with the application.

In doubtful cases, the Reserve Bank of India has asked authorised dealers to refer such cases to the apex bank.