RBI’s 1 Million $ Scheme for NRIs remitting funds abroad

 

 

1.The Reserve Bank of India (RBI) has formulated under the FEMA Regulations, a pivotal avenue for the repatriation of funds exclusively for Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Overseas Citizens of India (OCIs), and Foreign Nationals (referred to as “NRI/POI/OCI/Foreign Nationals”).

2.Under this scheme, individuals falling under the purview of NRI/POI/OCI/Foreign Nationals are granted the privilege to repatriate various assets of India which are as follows:

Proceeds from the sale of securities or immovable properties

Superannuation or PF benefits

Maturity proceeds of insurance policies

Gifts Received from Resident Individuals

Bank Balance savings, previous income, savings in India

Any other asset held in India in accordance with the provisions of FEMA,1999, or rules/regulations made thereunder.

3.Following are the benefits under the scheme:

No Tax Collected at Source (TCS) is applicable during the repatriation of funds under this scheme.

Borrowed funds are ineligible for repatriation under this scheme.

Repatriation of funds is exclusively facilitated through the Non-Resident Ordinary Rupee Account (NRO Account).

Taxes on income earned in India must be duly paid before repatriation.

Funds must be transferred solely to the individual’s overseas bank account, because third-party transfers are prohibited.

4.This scheme outlines a framework for the seamless transfer of Indian assets amounting to $1 million, approximately 8.3 crores in Indian rupees as of February 2024, within a given financial year.