Repatriability of hitherto Non-Repatriable Amounts
Foreign exchange has been a precious resource for the nation's economy. Recent years of liberalization of the Indian economy have tremendously strengthened the foreign exchange reserves of the country prompted the Government to go step by step for current account and capital account convertibility.
Even before the introduction of Foreign Exchange Management Act, 1999, NRI's current account income has been granted almost a total convertibility. The Reserve Bank of India has further liberalized the Rules for convertibility and has gone further by declaring total convertibility of hitherto non-repatriable income mainly being principal amount of Non Resident Non Repatriable (NRNR) deposits and legacies to the tune of US$ 10,00,000/- p.a.
The Reserve Bank of India has laid down procedures for repatriation of hitherto non-repatriable income such as rent, interest etc.
This chapter covers :