Foreign Exchange Management (Remittance of Assets) Regulations, 2000
RESERVE BANK OF INDIA
(EXCHANGE CONTROL DEPARTMENT)
MUMBAI 400 001
Notification No. FEMA 13/2000-RB dated 3rd May 2000
In exercise of the powers conferred by Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes the following regulations in respect of remittance outside India by a person whether resident in India or not, of assets in India, namely:
1. Short title and commencement :-
i) These Regulations may be called the Foreign Exchange Management (Remittance of Assets) Regulations, 2000.
ii) They shall come into force on 1st day of June, 2000.
2. Definitions :-
In these Regulations, unless the context requires otherwise, –
(i) ‘Act’ means the Foreign Exchange Management Act,1999 (42 of 1999);
(ii) ‘authorised dealer’ means a person authorised as an authorised dealer under subsection (1) of section 10 of the Act;
(ii) ‘Person of Indian Origin (PIO)’ means a citizen of any country other than Bangladesh or Pakistan, if
(a) he at any time held Indian passport;
(b) the person is a spouse of an Indian citizen or a person referred to in subclause (a) or (b).
(iv) ‘Remittance of asset’ means remittance outside India of funds representing a deposit with a bank or a firm or a company, provident fund balance or superannuation benefits, amount of claim or maturity proceeds of Insurance policy, sale proceeds of shares, securities, immovable property or any other asset held in India in accordance with the provisions of the Act or rules or regulations made thereunder;
(v) the words and expressions used but not defined in these Regulations shall have the same meanings respectively assigned to them in the Act.
3. Prohibition on Remittance outside India of assets held in India :-
Save as otherwise provided in the Act or rules or regulations made or issued thereunder, no person whether resident in India or not, shall make remittance of any asset held in India by him or by any other person:
Provided that the Reserve Bank may, for sufficient reasons, permit any person to make remittance of any asset held in India by him or by any other person.
4. Permission for remittance of assets in certain cases :-
(1) A person specified in sub-regulation (2) may make remittance of assets through an authorised dealer, to the extent specified in that sub-regulation.
(2) A citizen of foreign state, not being a citizen of Nepal or Bhutan or a person of Indian origin (PIO), who –
(i) has retired from an employment in India, or
(ii) has inherited the assets from a person referred to in sub-section (5) of section 6 of the Act; or
(iii) is a widow resident outside India and has inherited assets of her deceased husband who was an Indian citizen resident in India,
may remit an amount, not exceeding Rs.20 lakhs per calendar year, on production of,
(a) documentary evidence in support of acquisition of assets by the remitter; and
(b) a Tax clearance/no objection certificate from the Income-Tax authority for the remittance:
Provided that for the purpose of arriving at annual ceiling of remittance under the sub-regulation (2), the funds representing sale proceeds of shares and immovable property owned or held by the citizen of foreign state on repatriation basis in accordance with the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000 and Foreign Exchange Management (Transfer of Indian security by a person resident outside India) Regulations, 2000 made under the Act, shall not be included.
Provided further that where the remittance is made in more than one instalment, the remittance of all instalments shall be made through the same authorised dealer.
(iv) had come to India for studies/training and has completed his studies/training, may remit the balance available in his account, provided such balance represents funds derived out of remittances received from abroad through normal banking channels or rupee proceeds of foreign exchange brought by such person and sold to an authorised dealer or out of stipend/scholarship received from the Government or any Organisation in India.
(3) An authorised dealer in India may, without approval from Reserve Bank, effect remittance of assets made by a person eligible under sub-regulation (2).