Liberalising and simplifying the existing regulations, the Reserve Bank of India on Wednesday said an individual resident may borrow up to $250,000 or its equivalent from close relatives residing outside India, subject to certain conditions.

The minimum maturity period of the loan should be one year and be interest free, RBI said in a notification in Mumbai.

The amount of loan should have been received by way of inward remittances in free foreign exchange through normal banking channels or by debit to the NRE/FCNR(B) account of the Non-Resident lender, it added.