FED Master Direction No. 13/2015-16
January 1, 2016
All Authorised Dealer Category – I banks and Authorised banks
Madam / Dear Sir,
Master Direction – Remittance of assets
Remittance outside India by a person whether resident in India or not, of assets in India, are governed by section 47 of the Foreign Exchange Management Act, 1999 (FEMA) read with FEMA Notification No.13/2000-RB dated May 3, 2000. These Regulations are amended from time to time to incorporate the changes in the regulatory framework and published through amendment notifications.
2. Within the contours of the Regulations, Reserve Bank of India also issues directions to Authorised Persons under Section 11 of the Foreign Exchange Management Act (FEMA), 1999. These directions lay down the modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/constituents with a view to implementing the regulations framed.
3. Instructions issued on remittance of assets have been compiled in this Master Direction. The list of underlying circulars/ notifications which form the basis of this Master Direction is furnished in the Appendix. Reporting instructions can be found in Master Directions on reporting (Master Direction No. 18 dated January 01, 2016).
4. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/ constituents. The Master Direction issued herewith shall be amended suitably simultaneously.
(A K Pandey)
Chief General Manager
Master Direction – Remittance of assets
The Regulations for remittance outside India of assets in India by a person, whether resident in India or not, are laid down in the Notification No. FEMA 13/2000-RB dated May 3, 2000, as amended from time to time.
Some key terms used in the regulations are given below:
2.1 ‘Remittance of assets’ means remittance outside India of funds in a deposit with a bank/ firm/ 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 Foreign Exchange Management Act, 1999 (FEMA) or rules/ regulations made under FEMA.
2.2 ‘Non-Resident Indian’ (NRI) means a person resident outside India who is a citizen of India.
2.3 ‘Person of Indian Origin’ (PIO) means a citizen of any country other than Bangladesh or Pakistan who had (a) at any time held Indian passport or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955; or (c) the person is a spouse of an Indian citizen or a person referred to in (a) or (b).
2.4 ‘Authorised Dealer’ (AD) means a person authorised as an authorised dealer under subsection (1) of section 10 of the Act.
2.5 ‘Expatriate staff’ is a person whose provident/ superannuation/ pension fund is maintained outside India by his principal employer outside India.
2.6 ‘Not permanently resident’ is a person resident in India for employment of a specified duration or for a specific job/ assignment, the duration of which is not more than three years.
3. Remittance of assets permitted under the regulations
3.1 Remittances by individuals not being NRIs/ PIOs
ADs may allow remittance of assets by a foreign national where:
The remittance should not exceed USD one million per financial year. This limit, however, will not cover sale proceeds of assets held on repatriation basis. In case the remittance is made in more than one instalment, the remittance of all instalments should be made through the same AD on submission of documentary evidence.
These facilities are not available for citizens of Nepal or Bhutan or a PIO.
3.2 Remittances by NRIs/ PIOs
ADs may allow NRIs/ PIOs, on submission of documentary evidence, to remit up to USD one million, per financial year:
In case the remittance is made in more than one instalment, the remittance of all instalments should be made through the same AD.
3.3 Remittances by companies/ entities
3.3.1 ADs may allow remittances by Indian companies under liquidation on directions issued by a Court in India/ orders issued by official liquidator in case of voluntary winding up on submission of:
3.3.2 ADs may also allow Indian entities to remit their contribution towards the provident fund/ superannuation/ pension fund in respect of their expatriate staff resident but “not permanently resident” in India.
3.4 Remittances/ winding up proceeds of branch/ office
ADs may permit remittance of assets on closure or remittance of winding up proceeds of branch office/ liaison office (other than project office) on submission of the following documents:
(i) A copy of the Reserve Bank’s permission for establishing the branch/ office in India.
(ii) Auditor’s certificate:
(iii) a confirmation from the applicant that no legal proceedings are pending in any Court in India and there is no legal impediment to the remittance; and
(iv) a report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 2013, in case of winding up of the office in India.
4. Remittance of assets requiring RBI approval
4.1 Prior approval of the Reserve Bank is necessary for remittance of assets where:
4.2 Remittance of funds from the sale of assets in India held by a person, whether resident in or outside India, not covered under the directions stipulated above will require approval of the Reserve Bank.
5. Income-tax clearance
The remittances are subject to payment of applicable taxes in India. Reserve Bank of India will not issue any instructions under FEMA clarifying tax issues. It shall be mandatory on the part of Authorised Dealers to comply with the requirement of tax laws, as applicable.
List of notifications/ circulars which have been consolidated in this Master Direction
|FEMA Notification No 96||02.07.2003|
|FEMA Notification No 97||08.07.2003|
|FEMA Notification No 119||29.06.2004|
|FEMA Notification No 152||15.05.2007|
|FEMA Notification No 161||18.09.2007|
|FEMA Notification No 198||24.09.2009|
|FEMA Notification No 217||19.01.2011|
|FEMA Notification No 324||31.10.2014|
|AP DIR (Series) Circular 19||12.09.2002|
|AP DIR (Series) Circular 67||13.01.2003|
|AP DIR (Series) Circular 37||15.11.2003|
|AP DIR (Series) Circular 62||31.01.2004|
|AP DIR (Series) Circular 43||13.05.2005|
|AP DIR (Series) Circular 12||16.11.2006|
|AP DIR (Series) Circular 65||31.05.2007|
|AP DIR (Series) Circular 24||30.12.2009|
|AP DIR (Series) Circular 43||02.12.2014|