Acceptance of NRI Deposits by NBFC's - Revised Guidelines
Earlier, persons other than Authorised Dealers/Authorised Banks are permitted to accept deposits from Non-Resident Indians (NRIs). This includes a company registered under Companies Act, 1956 (including a non-banking finance company registered with Reserve Bank) or a body corporate created under an Act of Parliament or State Legislature who has accepted deposits from NRIs on repatriation basis or a company or a proprietorship concern or a firm in India which has accepted deposits from NRIs on non-repatriation basis. The interest earned on such deposits, being current income, is eligible to be repatriated outside India.
RBI has revised instructions as follows and shall be applicable with immediate effect from 24th April 2004-
RBI has decided that deposits by NRIs with persons other than Authorised Dealers/Authorised Banks by debit to NRO Accounts may continue as hitherto provided that the amount deposited with such entities does not represent inward remittances or transfer from NRE/FCNR(B) Accounts into the NRO account .
Deposits by NRIs with persons other than Authorised Dealers/Authorised Banks out of inward remittances from overseas or by debit to NRE/FCNR (B) Accounts shall henceforth not be permissible.
All persons other than Authorised Dealers/Authorised Banks may continue to hold and renew existing 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 will continue to be eligible for repatriation.