RBI Relaxes Repayment Norms For NRI Loans
MUMBAI: The Reserve Bank today allowed repayment of loans by resident citizens, which they have taken from their non-resident relatives, to the NRE or foreign currency non-resident (bank) accounts.
"It has been decided that... banks may allow repayment of loans to NRE/foreign currency non-resident (bank) [FCNR(B)] account of the lender concerned subject to the condition that the loan to the resident individual was extended by way of inward remittances in foreign exchange through normal banking channels," an RBI circular said here.
Currently, an individual resident is allowed to borrow not more than USD 250,000 or its equivalent from his or her non-resident relative, subject to the conditions of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000.
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