RBI LIBERALISES FOR INDIVIDUALS

A person resident in India can now give to a person resident outside India, by way of gift, any security, shares or debentures of value up to $ 50,000 in value per financial year. Individual residents in India are also now permitted to include a non-resident close relative as a joint holder in their resident bank accounts. Non-resident Indians (NRIs) or persons of Indian origin (PIOs) are now permitted to open non-resident (external) (NRE) Rupee Account Scheme/Foreign Currency (Non-Resident) (FCNR) Account (Banks) Scheme with their resident close relative as a joint holder on a 'former or survivor' basis. Resident individuals can now make rupee gifts within the overall limit of $200,000 per financial year as permitted under the Liberalised Remittance Scheme (LRS) to an NRI/PIO who is a close relative. Moreover, the sale proceeds of FDI can be credited to NRE Account Scheme/Foreign Currency (Non- Resident) Account FCNR (Banks) Scheme, provided the original acquisition was by way of inward remittance or funds held in their NRE/FCNR (B) accounts.