4 Outbound - framework under FEMA Overseas Direct Investments (ODI) - General Statutory frameworkSection 6 of FEMA Capital Account TransactionsFEM (Transfer or Issue of any Foreign Security) Regulations, 2004 (‘FEMA 120’)Master Circular on Outbound Investments dated 1 July 2013 (updated as on 22 October 2013)AP (DIR Series) Circulars issued by RBI from time to time especially after the Master CircularFAQs issued by the RBI (latest version on RBI website - 22 October 2013)Portfolio Investments - Also relevant for Individuals:Liberalised Remittance Scheme (‘LRS’) - Portfolio Investment Scheme (‘PIS’) (FEMA 1)Master Circular on Miscellaneous Remittances (Currently updated till 5 September 2013 on RBI website)FAQs issued by RBI (latest version on RBI website - 13 November 2013)
5 Who can make Overseas Direct Investment (‘ODI’) outside India? An Indian Party who is:a company incorporated in India; ora body created under an Act of Parliament: ora partnership firm registered under the Indian Partnership Act, 1932any other entity in India as may be notified by the Reserve BankAn Individual – Person Resident Outside IndiaSpecial cases (primarily under approval Route)Proprietary FirmTrust / SocietyUn-incorporated EntitiesLLPs – not permitted?
6 What is the meaning of ODI? Investment by an Indian Party by way of contribution to the capital or subscription to the MOA of a foreign entity or by way of purchase of existing shares of a foreign entity by:Investment through stock exchange orPrivate placement in that entity orMarket purchaseInvestment in a Joint Venture or Wholly Owned Subsidiary abroad,But does not include Portfolio Investment
7 What are the routes for ODI? Automatic RouteApproval RouteAuthorised DealerPrior approval of RBISpecifically prohibited activities – Real Estate and Banking BusinessReal Estate Business means buying and selling of real estate or trading in Transferable Development Rights but does not include development of townships, construction of residential/commercial premises, roads or bridges
8 What are the conditions for ODI under Automatic route? An Indian Party can make direct investment in JVs / WOSs outside India (Pakistan under Approval Route) without any RBI approval if:Overseas JVs / WOSs to be engaged in bonafide business activity except real estate and banking (Investment in Financial Sector should comply with additional conditions)Indian party not on RBI’s Exporters’ Caution list / list of defaulters / under investigation by an AuthorityOverall ceiling of financial commitment in all JVs / WOSs is 100% of net worth as on last audited Balance Sheet subject to certain exceptions (reduced from 400% w.e.f August 14, 2013)Submission of Form APR in respect of all its overseas investmentsIndian Party to approach the designated AD Bank with an application in Form ODI with prescribed documentsAD Bank to submit Form ODI online with RBI for generation of UINValuation imperatives to be complied with (see next slide)
9 What are the additional conditions for ODI in Financial Sector? Financial service sector not defined in the regulationsGuidance can be taken from Inbound Regulations and ODI formE.g. Banks, NBFC, Insurance, Asset management etc.Trading in Commodities Exchanges overseas and setting up JV/WOS for trading in overseas exchanges will be reckoned as Financial services activityAdditional conditions to be satisfied for ODI in financial services sector:Registration with appropriate regulatory authority in IndiaTrack record of net profits in preceding 3 years from financial services activityApproval from concerned regulators in India and abroad for such investmentCompliance with prudential norms relating to capital adequacy norms as prescribed by the concerned regulatory authority in India
10 ODI - What are the regulations under Automatic route? Valuation imperatives:Incase of partial / full acquisition of existing foreign company and where the investment is more than USD 5 Mn, valuation of shares by Category 1 Merchant Banker registered with SEBI; or Investment Banker / Merchant Banker outside India registered with appropriate regulatory authority in the host country;Valuation required even for additional investment in WOS if shares issued at premium or discount (as per FAQ)In all other cases a Chartered Accountant / Certified public Accountant.Valuation guidelines also relevant for Approval Route
11 ODI – How to compute networth? Networth = Paid up capital + Free Reserves (in case of corporates)For calculation of Net worth of the Indian party following to be considered:Net worth of the Indian Investing companyNet worth of its Indian Holding company which holds at least 51% stake therein subject to letter of disclaimer*Net worth of its Indian Subsidiary Company –holding of at least 51% and subject to letter of disclaimer** The facility not available to partnership firms.
12 What is Financial Commitment? Financial Commitment in any JV / WOS consists of:100% of the amount of equity shares;100% of the amount of compulsorily and mandatorily convertible preference shares;100% of the amount of other preference shares;100% of the amount of Loan;100% of the amount of guarantee (other than performance guarantee) issued by the Indian Party100% of the amount of bank guarantee (BG) issued by a resident bank on behalf of JV or WOS of the Indian party and the BG is backed by a counter guarantee/collateral by the Indian party50% of the amount of performance guarantee
13 What are the methods of funding ODI? Investment in overseas JV/WOS can be funded out of following resources:Purchase of currency from open market from an ADCapitalization of export proceedsSwap of shares – subject to FIPB approvalProceeds of ECBs / FCCBs*Exchange of ADRs / GDRsProceeds of ADRs / GDRs**Balance held in EEFC account***For financial commitment funded by way of External Commercial Borrowings (ECB), the limit of 400% of networth shall apply**Ceiling of 100% of networth will not apply
14 What are restrictions on loan / guarantee to overseas JV / WOS? Indian party may extend a loan / guarantee to only to an overseas JV / WOS in which it has equity participation else prior RBI approval requiredGuarantee can be corporate, personal, primary or collateral, guarantee by promoter company / group company / sister concern / associate company in IndiaNo guarantee can be open endedInvocation of guarantee in excess of 100% of net-worth – remittance to require prior RBI approvalGuarantees issued prior to August 14, 2013 – limit of 400% applicableGuarantee to step down subsidiariesCorporate guarantee on behalf of first level step down operating subsidiaries under the Automatic RouteCorporate guarantee on behalf of second generation and subsequent level step down operating subsidiary to be considered under Approval RouteAll corporate guarantees required to be reported in ODI Part II
15 What are the regulations under Approval route? Cases not covered under Automatic routeSpecific application to RBI with necessary documents in Form ODI through the AD (Category I Bank) along with prescribed supportings and documents – see next slideRBI would inter alia consider the following factors:Prima facie viability of JV/WOS outside IndiaContribution to external trade and other benefits which will accrue to India through such investmentFinancial position and business track record of the Indian party and foreign entityExpertise and experience of the Indian party in the same or related line of activity of the JV / WOS outside India
16 What is the procedure for ODI under Approval route? Plain paper application with Form ODI through AD Bank along with the following documents:Report from the bankers of the Indian party in sealed or closed coverLatest Annual Accounts of Indian company along with director’s reportIf acquisition of existing foreign company following additional documentsCopy of certificate of incorporation of foreign entityLatest Annual Accounts of foreign entity along with Director’s ReportValuation certificate for the shares of the foreign entityCertified copy of the Board Resolution of Indian companyIf investment is in Financial Service sector – Certificate from Statutory Auditors / independent practicing CA for Compliance of the specified additional conditionsApproval from concerned onshore and offshore regulatory authorities to be obtained
17 What are the obligations of the Indian Party? Receive share certificates / documentary evidence within six monthsRepatriate to India all dues receivable form the foreign entity (dividend, royalty, technical fees, etc) within 60 days of its falling dueSubmit the Annual Performance report (APR) – Part III of Form ODI within three months of the closing of annual accounts of the JV / WOS. If the law of the host country does not mandatorily require auditing of books, the APR may be submitted by the Indian party based on un-audited annual accounts of the JV / WOS provided:The statutory auditors of the Indian party certify that “the un-audited annual accounts of the JV / WOS reflect the true and fair picture of the affairs of JV / WOS andThat the un-audited annual accounts of the JV / WOS has been adopted and ratified by the Board of the Indian party.Post Investment Changes / additional investment in existing JVs/WOSs should be reported to RBI through AD Bank within 30 days from the date of the approval of changes / investments and include the same in APR - Part III of Form ODI
18 How can one disinvestment from an overseas JV/WOS? (1/3) Transfer by way of sale of shares of a JV/ WOS to another Indian Party or to a non-resident allowed subject to the following conditions:Sale does not result in write-off of the investments made;Shares of the listed JV/WOS – sale through a stock exchange;Unlisted shares – share price is not less than the value certified by a CA/CPA as the fair value based on latest audited financial statements of the JV/WOSIndian party does not have any outstanding dues like dividend, technical know-how fees, royalty, consultancy, commission or other entitlements, and/or exportOverseas concern has been in operation for at least one full year and the APR and accounts has been submitted to RBIIndian party is not under investigation by CBI/ DoE/ SEBI/ IRDA or any other regulatory authority in IndiaThe Indian party to submit details of the disinvestment through its AD within 30 days from date of disinvestment
19 How can one disinvestment from an overseas JV/WOS? (2/3) Transfer by way of sale of shares of JV / WOS involving write off of the investment:Disinvestments without prior approval of the RBI, where the amount repatriated on disinvestment is less than the amount of the original investments is permitted in the following cases:JV/ WOS is listed in overseas stock exchangeWhere the Indian Party is listed on a stock exchange in India and has net worth of not less than Rs CrWhere the Indian Party is an unlisted company and the investment in the overseas venture does not exceed USD 10 millionWhere the Indian Party is a listed company with net worth of less than Rs.100 crore but investment in an overseas JV/WOS does not exceed USD 10 millionAn Indian Party, which does not satisfy the conditions stated above, shall have to apply to RBI for prior permission
20 How can one disinvestment from an overseas JV/WOS? (3/3) Restructuring of Balance SheetIndian parties which have overseas WOS/ have at least 51% stake in JV, may write off capital (equity/preference shares) or other receivables such as loans, royalty, technical know-how fees and management fees in respect of such JV/ WOS, even while such JV/ WOS continues to function as under:Listed Indian Companies – up to 25%of the equity investment in JV/ WOS under the Automatic Route; andUnlisted Indian Companies – up to 25% of the equity investment in JV/ WOS under the Approval RouteReporting to RBI within 30 days of such restructuring/ write-off:Certified copy of Balance Sheet showing the loss in JV/ WOSProjections for next 5 years indicating consequential benefit of such restructuring / write-off
21 Can Resident Individuals invest outside India? Resident Individuals are granted general permission to purchase / acquire securities:Out of funds held in Resident Foreign Currency (‘RFC’) accountBonus shares on securities heldForeign currency resources outside India (when not permanently resident in India, etc)Under Gift or InheritanceTo acquire share under cashless ESOP issued by a company outside India provided no remittance from IndiaTo purchase shares under ESOP (several conditions stipulated)To acquire of shares of a foreign company offered as consideration for professional services rendered to the foreign company (within LRS ceiling)To acquire qualification shares on becoming director of overseas company – within LRS ceilingTo acquire right shares provided original holding is as per the lawTo acquire shares of JV / WOS of Indian Company engaged in Software by the Employees / Directors (USD 10,000 in a block of five calendar years plus other conditions)
22 Can Resident Individuals invest outside India? ODI by Resident IndividualCovers strategic investments as compared to portfolio investments covered under LRSThe investment by Resident Individuals would be restricted to limits under the Liberalized Remittance Scheme – currently USD 75,000Even if investment is from EEFC / RFC accountJV / WOS to be located in non-FATF countries and to be an operating entity (real estate / banking / financial services business prohibited)JV / WOS not allowed to set-up or acquire step down subsidiaryValuation guidelines, reporting requirements and other conditionalities (Form ODI, etc) applicable
23 What are the regulations under LRS? LRS available to all Resident individuals (RI) including minors (singularly or jointly)RI can remit overseas up to USD 75,000 per financial year for any permissible current / capital account transaction.RI can acquire and hold shares or any other asset outside India without prior approval of RBI using the LRS. (cannot acquire immoveable property)RI can open, hold and maintain foreign currency accounts with a bank outside India for remittances under the scheme without the prior approval of RBI.Income and sum remitted need not be brought back into India and can be reinvested overseasRemittances inter alia not permitted for:Remittance directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan;Remittances to specified non- cooperative countries / territories or those identified by the Financial Action Task Force as ‘non-co-operative Countries or Territories’Remittance by a resident individual for setting up a company abroad (post setting up by any other PROI, fresh issue or acquisition of shares is fine)
24 What are the other regulations for outbound investments? Mutual FundsAggregate ceiling for overseas investment by Mutual Funds registered with SEBI is $7 bnA limited number of qualified Indian Mutual Funds are permitted to invest cumulatively upto $1 bn in Overseas Exchange Traded FundsDomestic Venture Capital Fund (‘DVCF’)SEBI registered DVCF may invest in equity and equity linked instruments of off-shore Venture Capital Undertakings, subject to an overall limit of $500 mnAccordingly, DVCF desirous of availing of this facility may approach SEBI for necessary permissionOther casesOverseas listed portfolio investments (shares, etc) by listed Indian company (till 50% net-worth)
25 What are the regulations ODI by Registered Trust / Society? Trust / Society, with prior approval from RBI, are allowed to set up JV / WOS outside India subject to following conditions:engaged in manufacturing / educational / hospital sectorTrust / Society should be registered under Indian Trust Act / Societies Registration ActTrust deed / MOA permits proposed investmentProposed investment approved by trustees / governing body of the Trust / SocietyAD is satisfied that the trust / society Is KYC compliant and engaged in bonafide activityTrust / Society has been in existence atleast for a period 3 yearsNot come under adverse notice of Regulatory / Enforcement agency like DoE / CBI etc.
26 What are the regulations for ODI by Proprietorship concern / unregistered partnership? Proprietary concerns and unregistered partnership firms, with prior approval from RBI, are allowed to set up JV / WOS outside India subject to following conditions:Recognized star export house with proven track record i.e. export outstanding does not exceed 10% of average export realization of preceding three yearsAD is satisfied that the exporter is KYC compliantExporter is not on the caution list of RBI / adverse notice from any Government agency like Directorate of Enforcement (DoE) and CBIAmount of proposed investment outside India does not exceed:10% of the average of 3 financial years export realization or200% of net owned funds of the firmwhichever is lower
28 What is the framework under FEMA? Statutory FrameworkSection 6 Sub-section 3 of Foreign Exchange Management Act,1999Regulations – FEMA 3 /2000-RB on Foreign Exchange Management (Borrowing and Lending in Foreign Exchange)Other NotificationsRBI Master Circular No. 12/ – 1 July 2013 (Updated as on 20 September 2013)Circulars issued by RBI from time to time.
29 What are the key concepts for ECB? The following are the key six essential concepts to be considered for ECB:Eligible borrowersRecognised lendersEnd use (purpose of borrowing)Amount and MaturityAll-in-cost ceilings (rate of interest, etc)Procedure and filings
30 What is covered under the ambit of ECB? Pure loans / debtsLoans from overseas investor / group companiesBank LoansSupplier’s CreditBuyer’s CreditSecuritized Instruments [Floating Rate Notes and Fixed Rate Bonds, Non-Convertible, Optionally Convertible or Partly Convertible Preference Shares]Foreign Currency Convertible Bonds (FCCB)Foreign Currency Exchangeable Bonds(FCEB).Redeemable or Optionally Convertible Preferences Shares
31 What are the available routes for ECB? Routes availableAutomatic RouteNo approval of the Reserve Bank of India (‘RBI’) / Government of IndiaObtain Loan Registration Number (‘LRN’) from the RBI (Form 83)Monthly filings with RBI (Form ECB 2)Approval RouteApproval of RBI through Authorized Dealer Bank (‘ADB’) required (Form ECB)Obtain LRN from the RBI (Form 83)Monthly filings with RBI (Form ECB 2)
32 Who are Eligible Borrowers under Automatic Route? Indian Corporate(s) in Real-Industrial Sector, Infrastructure Sector, Units in Special Economic Zone; and those in specified Service sectors i.e. Hotels / Hospitals / Software.Units in SEZ for own requirementNon Banking Finance Companies (‘NBFC’) – Industrial Finance Companies,NBFC – Asset Finance CompaniesMicro Finance Institutions and Non-Government Organizations engaged in micro finance activities subject to conditionsHolding Companies / Core Investment Companies (CICs) regulated by RBI, subject to conditions for project use in SPVs – CapexSIDBIIndividuals, Trusts and Non-profit making organizations not eligible to raise ECB
33 Who are Eligible Borrowers under Approval Route? Cases outside the purview of automatic route and limits.EXIM bank for on-lending and specific purposesBanks / FIs participating in textile / steel restructuring subject to conditionsHousing Finance Companies for raising FCCB subject to conditionsSPVs set up to finance infrastructure companies / projectsSEZ / National Manufacturing Investment Zone developers for providing infrastructure facility within the SEZ.Indian Corporate(s) in service sectors other than Hotel, Hospital and Software Sector i.e. mainly R&D, miscellaneous service companies, etc for ECBs from foreign equity holdersHolding Companies / Core Investment Companies (CICs) regulated by RBI, subject to conditions for project use in SPVs – Refinancing of Rupee loansMulti-State Co-operative Society engaged in manufacturing subject to conditionsCorporates under investigation – in all cases
34 Who are Recognized Lenders – 1/2 a) Under Automatic Route as well as Approval RouteInternational Banks, International Capital Markets, Multilateral Financial Institutions (e.g. IFC, ADB, CDC), Regional Financial Institutions, Government Owned Development Financial InstitutionsExport Credit Agencies, Suppliers of EquipmentForeign Collaboratorsb) Under Automatic RouteForeign Equity Holders (other than erstwhile OCBs)ECB up to USD 5Mn – directly holds at least 25% paid up equity of borrower companyECB more than USD 5Mn – Holds 25% paid up capital and ECB Liability – Equity Ratio does not exceed 4:1 (paid-up capital, free reserves, proportionate share premium, etc corresponding to the foreign lender)c) Other organization / Individual - only to NGOs and MFIs engaged in Micro finance sector subject to conditions
35 Who are Recognized Lenders – 2/2 c) Under Approval RouteForeign Equity Holders (other than erstwhile OCB) ifECB up to USD 5Mn – directly holds at least 25% paid up equity of borrower companyECB more than USD 5Mn – Holds 25% paid up capital and ECB Liability – Equity ratio does not exceed 7:1Indirect Equity Holder (Provided the indirect equity holding is at least 51%)Group Company (Provided both the borrower and the lender are subsidiaries of the same parent)
36 How can ECB be utilized? (End-use) Key items under the Automatic RouteInvestment such as import of Capital Goods, New projects, Modernization / expansion of existing production units in Real Industrial / Specified Service / Infrastructure sector – the scope of infrastructure recently expanded to included several sectors such as water, sanitation, energy, etc.Direct investment in overseas JVs / Wholly owned subsidiaries subject to guidelinesAcquisition of shares in disinvestment process for PSU sharesInterest during construction for Indian Companies which are in the Infrastructure sectorLending to self help groups or for micro credit or for micro finance activity by NGOCapital Expenditure for maintenance and operations of toll systems for roads and highwayPayment for Spectrum AllocationNot Permitted - On lending, investment in capital markets or acquiring an Indian Company (or part thereof), Real Estate Sector, Land costs not eligible for service sector
37 How can ECB be utilized? (End-use) Key items under the Approval RouteIn addition to as prescribed under the automatic route:Refinance of Rupee loan availed for spectrum allocation payment subject to conditionsRepayment of rupee loan for specified sectors subject to conditionsImport of services, technical know-how and payment of license fees as part of import of capital goods subject to conditionsGeneral corporate purposes including for working capital and repayment of rupee loans subject conditions only from foreign equity holder (+25%)Bridge Finance (Infrastructure Co. only), Low Cost Affordable Housing, 3G Spectrum Allocation, etc.
38 How much ECB can be availed and for what duration? Automatic RouteSectorMaximum Amount (During FY)Real - Industrial / Infrastructure:USD 750 Mn or its equivalentHotels, Hospital and Software (Service)USD 200 Mn or its equivalentNGOs and MFIs engaged in Micro Finance ActivityUSD 10 Mn or its equivalentApproval RouteSectorMaximum Amount (During FY)Real - Industrial / Infrastructure:Beyond USD 750 Mn or its equivalentHotels, Hospital and Software (Service)Beyond USD 200 Mn or its equivalentMinimum Average Maturity – Weighted Average Method as stipulated:For ECBs upto USD 20 Mn – should be minimum of 3 yearsFor ECBs over USD 20 Mn and upto USD 750 Mn – should be minimum of 5 yearsFor working capital / general corporate purpose ECB – repayment should be after 7 years
39 What can be the borrowing cost of ECB? (All-in-cost ceilings) Components:Rate of InterestOther feesExpenses in foreign currencySpecific Exclusions:Commitment fees,Pre-payment fees, andFees payable in Indian RupeesWithholding Tax paid in Indian RupeesAverage Maturity PeriodAll-in-cost Ceilings over 6 month LIBOR*3-5 Years350 Basis PointsMore than 5 Years500 Basis Points*For the respective currency of borrowing or applicable benchmark
40 What are the powers delegated to AD Bank? Powers to AD to approve changes in terms and conditions of ECB under both the routes subject to conditions:Changes in Currency of borrowingChange in BankersChange in the name of the borrowerChanges in recognised lender in case of foreign equity holder and foreign collaborator require prior approvalCancellation of LRN if ECB is not availedChange in the permissible end-use of ECB proceedsReduction in amount of ECBChanges / modifications in the drawdown / repayment schedule subject to conditionsReduction in the all-in-cost of ECB
41 What are regulations for creation of guarantee / security for ECB? Banks, FIs, NBFCs cannot give any guarantee or Letter of credit or undertaking or letter of comfort for ECBSecurityChoice of Security is left to the parties with AD Bank giving no-objectionCharge could relate to immovable properties or sharesShares can be shares of borrower company held by promoters as well as in domestic associate companies of borrowerIn case of invocation of pledge for shares, transfer should be as per extant FDI policyIn case of enforcement of charge immovable property to be sold only to person resident in IndiaIssue of corporate or personal guarantee in favor of overseas lender permissibleSeveral conditionalities prescribed for creation of security or giving of guarantee with respect to period, documentation, transfer, etc.
42 What are conditions / restrictions on parking of ECB proceeds? Parking of ECB proceeds overseasECB proceeds for foreign currency expenditure may be parked overseas or remitted to India pending utilizationProceeds parked overseas permitted to be invested in the following liquid assets outside India subject to liquidation as and when the funds required in IndiaDeposits or Certificates of Deposit with credit rating of at least AA- by specified credit rating agencyTreasury bills or monetary instruments with one year maturityDeposits with overseas branch of Indian banksECB for Rupee expenditure to be remitted to India immediately and parking of proceeds overseas is not allowed
43 Can ECB be refinanced, pre-paid, converted? Refinancing permitted subject to the following conditions:Fresh ECB is raised at a lower all-in-costOutstanding maturity of the original ECB is maintained.Refinancing of existing ECB by raising a fresh ECB at a higher rate discontinued w.e.f 1 October 2013.Pre-payment of ECB:Automatic Route - Up to USD 500 million subject to compliance with minimum average maturity period as applicableApproval Route - Prepayments exceeding USD 500 millionConversion of ECB into Equity subject to conditions:*Activity of the company is covered under automatic route or FIPB approval is obtainedForeign equity holding post conversion is within sectoral capsShare pricing should be as per pricing guidelines issued under FEMA - fair value as on date of conversion.Filing requirements – Form FC-GPR, Form ECB 2 etc.* Conversion of foreign exchange liability should be at the rate prevailing on the date of agreement between parties concerned for such conversion
44 What are the regulations for Trade Credits? Trade Credits for credit for imports extended by the overseas supplier (suppliers credit) or bank and financial institution (buyers credit)AD-Bank are authorized to approve Trade Credits and report to RBITrade Credit Amount / Eligibility = USD 20 million per import transactionsTrade Credit MaturityCapital Goods as per foreign trade policy - upto 5 years (earlier only infrastructure sector allowed 5 years and others eligible for 3 years)Non-capital goods –upto 1 yearCredit period to be from the date of shipmentAll-in-cost ceilings – 350 basis points over 6 months LIBORAD Bank can issue Letter of Credit / Guarantee / Letter of Undertaking or Comfort but upto 3 years
46 What is the framework under FEMA? Regulations – FEMA 5/2000-RB on Foreign Exchange Management (Deposit) regulations, amended from time to timeOther NotificationsCirculars issued by RBI from time to time.
47 What are the types of deposits accepted by AD Banks? Non-resident (External) Account Scheme (‘NRE account’) from a non-resident IndianForeign Currency (Non-Resident) Account Banks Scheme (‘FCNR – B account’) from a non-resident IndianNon-Resident (Ordinary) Account Scheme (‘NRO account’) from any person resident outside India
48 What are the key Features of various deposit schemes? (1/2) ParticularsFCNR (B) AccountNRE AccountNRO AccountType of AccountTerm Deposit onlySavings, Current, Recurring, Fixed DepositWho can open?NRIs - individuals/ entities of Bangladesh/ Pakistan nationality / ownership require prior approval of RBINRIs - individuals/ entities of Bangladesh/Pakistan nationality / ownership require prior approval of RBIAny person resident outside India (other than a person resident in Nepal and Bhutan).Individuals / entities of Pakistan nationality / ownership, entities of Bangladesh ownership and erstwhile Overseas Corporate Bodies require prior approval of the RBI.Joint Account?Two or more non-resident individuals - provided all are persons of Indian nationality or origin;May be held jointly with residentsCurrency?Any freely convertible currencyIndian Rupees
50 Thank you!The views in this presentation are personal views of the Presenter. Further, the information contained is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although, the endeavor is to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such / this information without appropriate professional advice which is possible only after a thorough examination of facts / particular situation.