Reserve Bank of India eased Property transaction Norms for NRIs

The Reserve Bank of India (RBI) permitted Indians who have non-resident accounts in the country to hold them in any currency which is fully convertible. The move is expected to help NRIs/Persons of Indian Origin as it will give them more options in the holding of accounts, and lessen the risk from fluctuations in major currencies.

In another relaxation, the RBI specified that any citizen who was earlier residing in a foreign country can own or transfer property or other assets in that nation if it was acquired during the time of his residence there.

Earlier, Foreign Currency (Non-Resident) Account (Banks) (FCNR(B)) account holders were allowed to hold accounts in only certain currencies such as the Pound Sterling, US dollar, Japanese yen, euro, Canadian dollar and Australian dollar.

The central bank mentioned that Authorised Dealer banks in India can accept FCNR (B) deposits in any permitted currency. Permitted currency implies a foreign currency which is freely convertible.

The Committee to Review the Facilities for Individuals under Foreign Exchange Management Act recommended that FCNR(B) accounts may be opened in any freely convertible currency.