The Reserve Bank of India (RBI) has issued AP (DIR Series) Circular No. 70, dated June 9, 2011 permitting Authorized Dealer Category – I banks [AD] to re-designate resident accounts of repatriating foreign nationals as Non-Resident (Ordinary) [NRO] accounts. This will enable foreign nationals to receive their bona fide dues even after they leave the country. Prior to this, foreign nationals had to close their resident accounts at the time of repatriation from India.
The RBI has laid down the following conditions that are to be satisfied for accounts to be redesignated:
In a way, this circular may be the answer to the current stalemate over refund of provident fund balance and income tax refunds due to an eligible foreign national since the India bank account can be kept open till all dues are received and repatriated.