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RBI revises norms on NRI deposits
April 24, 2004 16:00 IST
Last Updated: April 24, 2004 17:18 IST
The Reserve Bank of India has disallowed entities, except authorised dealers or authorised banks, from accepting deposits from Non-Resident Indians received through fresh overseas remittances, with immediate effect.
These entities would also not be permitted to accept deposits from NRIs by debit to their Non-Resident External or Foreign Currency Non-Resident (Bank) accounts, an RBI media release said in Mumbai on Saturday.
Following a review of the guidelines, RBI has decided that deposits by NRIs with persons other than authorised dealers or authorised banks by debit to Non-Resident Ordinary accounts may continue, provided that the amount deposited with such entities does not represent inward remittances or transfer from NRE/FCNR(B) accounts into this account.
The entities would, however, be permitted to continue to hold the existing deposits and also renew such deposits held in their books in the name of NRIs on repatriation or non-repatriation basis, as the case may be.
The interest earned on such deposits would continue to be eligible for repatriation.
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