A.P.(DIR Series) Circular No. 05/2002-03-RB, Dt. 15/07/2002

Credits to Non-Resident External Rupee (NRE) Accounts

To

All Authorised Dealers in Foreign Exchange

Madam/Sirs,

Attention of authorised dealers is invited to paragraph No.3 of Schedule 1 to Reserve Bank Noficiation No.FEMA.5/2000-RB dated May 3, 2000 regarding permitted credits to NRE Rupee Accounts and A.P. (DIR Series) Circular No.45 dated May 14, 2002 permitting them to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for.

2. It is clarified that authorised dealers may credit the current income like rent, dividend, pension, interest, etc. of NRIs to their Non-Resident (External) Rupee Accounts provided they are satisfied that the credit represents current income of the non-resident account holder and income tax thereon has been deducted/paid/provided for, as the case may be.

3. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Yours faithfully,
GRACE KOSHIE
Chief General Manager

(Pl. refer A.P. (DIR Series)Cir. No. 26/2002-03-RB, Dt. 28/09/2002 for Remittance of Current Income by Non-Resident Indians)

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