BUSINESS

RBI revises norms on NRI deposits

MUMBAI, APRIL 24. The Reserve Bank of India has today disallowed entities other than authorised dealers and banks from accepting deposits from non-resident Indians (NRIs) with immediate effect. "They will also not be permitted to accept deposits from NRIs by debiting to their non-residential External (NRE) and foreign currency non-resident (banks) (FCNR(B) accounts,'' the RBI stated in a press release today.

They will, 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 on a non-repatriation basis.

The interest earned on such deposits will continue to be repatriable. "This decision was taken after reviewing the issue in the light of current developments", it added.

Under the existing regulations apart from authorised dealers and banks a company registered under the Companies Act 1956 (including a non-banking finance company registered with the RBI or a body corporate created under an Act of Parliament or State Legislature is allowed to accept deposits from NRIs on a repatriation basis.

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