1. Forex Facilities in India (under the FEMA, 1999) Definitions Facilities for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) Facilities for Resident Indians 1

2. Definitions 2

3. Person Resident in India A 'person resident in India' is defined in Section 2(v) of FEMA, 1999 as : A person residing in India for more than 182 days during the course of the preceding financial year but does not include – (A) a person who has gone out of India or who stays outside India, in either case - for or on taking up employment outside India, or for carrying on outside India a business or vocation outside India, or for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period; (B) a person who has come to or stays in India, in either case, otherwise than – for or on taking up employment in India, or for carrying on in India a business or vocation in India, or for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period any person or body corporate registered or incorporated in India, an office, branch or agency in India owned or controlled by a person resident outside India, an office, branch or agency outside India owned or controlled by a person resident in India; 3

4. NRI and PIO A Non Resident Indian (NRI) is a person resident outside India, who is a citizen of India or is a person of Indian origin. A Person of Indian Origin (PIO) for this purpose is a citizen of any country other than Bangladesh or Pakistan, if (a) he 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 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b). 4

5. Authorised Persons Authorised Dealers (ADs) An Authorised Dealer is normally a bank specifically authorized by the Reserve Bank under Section 10(1) of FEMA, 1999, to deal in foreign exchange or foreign securities Full-Fledged Money Changers (FFMCs) are permitted to release exchange for business and private visits 5

6. Facilities for Resident Indians 6

7. Current vs Capital Account Under the Foreign Exchange Management Act, 1999 (FEMA), which came into force with effect from June 1, 2000, all transactions involving foreign exchange have been classified either as capital or current account transactions. In terms of Section 5 of the FEMA, persons resident in India are free to buy or sell foreign exchange for any current account transaction except for those transactions for which drawal of foreign exchange has been prohibited by the Central Government. 7

8. Travel Abroad Private Visits Up to USD 10,000 for countries other than Nepal and Bhutan, for tourism, etc. in any one financial year, on self- declaration basis, irrespective of the number of visits undertaken during the year. This limit of USD 10,000 or its equivalent per financial year for private visits can also be availed of by a person who is availing of foreign exchange for travel abroad for any purposes, such as, for employment or immigration or studies. No foreign exchange is available for visit to Nepal and/or Bhutan for any purpose. A resident Indian is allowed to take INR of denomination of Rs.100 or lesser denomination to Nepal and Bhutan without limit. Business Trips Up to USD 25,000 per visit for countries other than to Nepal and Bhutan. Visits in connection with attending of an international conference, seminar, specialised training, study tour, apprentice training, etc., are treated as business visits. Release of foreign exchange exceeding USD 25,000 for business travel abroad (other than to Nepal and Bhutan), irrespective of the period of stay, requires prior permission from RBI. 8

9. Medical Treatment An AD can release forex up to USD 100,000 for medical treatment abroad on self declaration basis, without insisting on any estimate from a hospital/doctor in India/abroad. A person visiting abroad for medical treatment can obtain forex exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad. An amount up to USD 25,000 is allowed for maintenance expenses of a patient going abroad for medical treatment or check-up abroad, or to a person for accompanying as attendant to a patient going abroad for medical treatment/check-up. The amount of USD 25,000 allowed to the patient going abroad is in addition to the limit of USD 100,000 mentioned above. 9

10. Students Going Abroad For studies abroad the estimate received from the institution abroad or USD 100,000, per academic year, whichever is higher, may be availed of from an AD. Students going abroad for studies are treated as Non- Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA, 1999. Educational and other loans availed of by students as residents in India can be allowed to continue. A student holding NRO account may withdraw and repatriate up to USD 1 million per financial year from his NRO account. The student may avail of an amount of USD 10,000 or its equivalent for incidental expenses out of which USD 3000 or its equivalent may be carried in the form of foreign currency while going for study abroad. 10

11. Employment Abroad A person going abroad for employment can draw foreign exchange up to USD 100,000 from any AD on self-declaration. 11

12. Emigration A person going abroad on emigration can draw foreign exchange from an AD up to the amount prescribed by the country of emigration or USD 100,000 on self- declaration This amount is only to meet the incidental expenses in the country of emigration. No amount of foreign exchange can be remitted outside India to become eligible or for earning points or credits for immigration. All such remittances require prior permission of RBI. If requirement exceeds USD 100,000, the person requires to obtain prior approval from RBI. 12

13. Cases Requiring Prior Approval Dance troupes, artistes, etc., who wish to undertake cultural tours abroad, are required to prior approval from the Ministry of Human Resources Development (Department of Education and Culture), Government of India, New Delhi. Permission is required for receiving grant/donation from abroad under the Foreign Contribution Regulation Act, 1976 which is administered and monitored by the Ministry of Home Affairs, though no specific approval from the RBI is required in this regard. 13

14. General Permissible foreign exchange can be drawn 60 days in advance. If it is not possible to use it within a period of 60 days, it should be immediately surrendered to an authorised person. Residents can retain foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for future use or credit to their Resident Foreign Currency (Domestic) Accounts. Foreign coins can be held without any limit. Foreign exchange for travel abroad can be purchased from an authorised person against Rupee payment in cash only up to Rs.50,000/-. If the Rupee equivalent exceeds Rs.50,000/-, the entire payment should be made by way of a crossed cheque/ bankers cheque/ pay order/ demand draft/ debit card / credit card / prepaid card only. 14

15. International Credit / Debit Cards International Credit Cards (ICCs) / ATMs/ Debit Cards can be used for travel abroad in connection with various purposes. They can also be used for making personal payments like subscription to foreign journals, internet subscription, etc. The entitlement of foreign exchange on ICCs is limited by the credit limit fixed by the card issuing authority only. With ICCs one can (i) meet expenses/make purchases while abroad (ii) make payments in foreign exchange for purchase of books and other items through internet in India. If the person has a foreign currency account in India or with a bank overseas, he/she can even obtain ICCs of overseas banks and reputed agencies. Use of these instruments for payment in foreign exchange in Nepal and Bhutan is not permitted. 15

16. Gifts / Donations Any resident individual, may remit the entire limit of USD 200,000 in one financial year under LRS as gift to a person residing outside India or as donation to a charitable / educational / religious / cultural organisation outside India. Remittances exceeding USD 200,000 requires prior permission from RBI. 16

17. Sending Gifts Abroad A person resident in India is free to send (export) any gift article of value not exceeding Rs.5,00,000 provided export of that item is not prohibited under the extant Foreign Trade Policy and the exporter submits a declaration that goods of gift are not more than Rs.5,00,000 in value. Export of goods or services up to Rs.5,00,000 may be made without any forms like GR / SDF / PP / SOFTEX, etc. 17

18. Indian Currency While Going Abroad Residents can take outside India (other than to Nepal and Bhutan) INR notes up to an amount not exceeding Rs. 7,500/ - per person. They may take or send outside India (other than to Nepal and Bhutan) commemorative coins not exceeding two coins each. 18

19. Indian Currency While Coming to India A resident of India, who has gone out of India on a temporary visit can bring into India, at the time of his return from any place outside India (other than Nepal and Bhutan), INR notes up to an amount not exceeding Rs.7,500. A person can take or send out of India to Nepal or Bhutan, currency notes of Government of India and Reserve Bank notes, in denominations not exceeding Rs.100. 19

20. Forex While Coming to India A person coming into India from abroad can bring with him forex without any limit. If the aggregate value of the forex brought (currency notes, bank notes or travellers cheques) exceeds USD 10,000 or its equivalent and/or the value of foreign currency alone exceeds USD 5,000 or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India. 20

21. Taking Jewellery Abroad Taking personal jewellery out of India is goverened by the Baggage Rules, governed and administered by the Customs Authorities. Approvals, if any, required should be obtained from Customs Authorities. No approval of the RBI is required. 21

22. Local Hospitality A person resident in India is free to make any payment in Indian Rupees towards meeting expenses on boarding, lodging and relating services or travel to and from and within India, of a person resident outside India, who is on a visit to India. 22

23. Purchase of Air Tickets in India Residents may book their tickets in India for their visit to any third country not involving India. For example, residents can book their tickets for travel from London to New York, through any domestic or foreign airlines in India itself and pay for the same in INR locally. 23

24. Foreign Currency Denominated Accounts Exchange Earners Foreign Currency Accounts Resident Foreign Currency Accounts Resident Foreign Currency (Domestic) Account 24

25. Exchange Earners Foreign Currency A/c All resident foreign exchange earners can credit up to 100 per cent of their, to their EEFC Account with an AD in India. Funds held in EEFC account can be utilised for all permissible current account transactions and also for approved capital account transactions The account is maintained in the form of a non-interest bearing current account. 25

26. Resident Foreign Currency Accounts A person resident in India may open, hold and maintain with an Authorised Dealer in India a Resident Foreign Currency (RFC) Account to keep their foreign currency assets which were held outside India at the time of return can be credited to such accounts. The foreign exchange received as: o pension of any other superannuation or other monetary benefits from the employer outside India o received or acquired as gift or inheritance o received as the proceeds of life insurance policy claims / maturity / surrender values settled in foreign currency from an insurance company in India can also be credited to this account. RFC account can be maintained in the form of current or savings or term deposit accounts. The funds in RFC account are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment outside India. 26

27. Resident Foreign Currency (Domestic) Account A resident Individual may open, hold and maintain with an AD in India, a Resident Foreign Currency (Domestic) Account, out of foreign exchange acquired in the form of notes and travellers cheques, from any of the sources like, payment for services rendered abroad, as honorarium, gift, services rendered or in settlement of any lawful obligation from any person not resident in India. The account may also be credited with / opened out of foreign exchange earned abroad like proceeds of export of goods and / or services, royalty, honorarium, etc., and / or gifts received from close relatives (as defined in the Companies Act) and repatriated to India through normal banking channels. The account is maintained in the form of current account and does not bear any interest. There is no ceiling on the balances in the account. The account may be debited for payments made towards permissible current and capital account transactions. 27

28. Holding Assets Abroad Residents in India are free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. 28

29. Liberalised Remittance Scheme (LRS) All resident individuals, including minors, are allowed to freely remit up to USD 200,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the Scheme. 29

30. LRS: Prohibited Items Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty; Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market; Remittance for trading in foreign exchange abroad; Remittance by a resident individual for setting up a company abroad; Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan; Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as non co-operative countries and territories,; and Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism 30

31. LRS facility The facility under the Scheme is in addition to those already available for private travel, business travel, studies, medical treatment, etc., The Scheme can also be used for these purposes. However, gift and donation remittances cannot be made separately and have to be made under the Scheme only. Accordingly, resident individuals can remit gifts and donations up to USD 200,000 per financial year under the Scheme. 31

32. LRS: Repatriation of the accrued interest/dividend The investor can retain and reinvest the income earned on investments made under the Scheme. The residents are not required to repatriate the funds or income generated out of investments made under the Scheme. 32

33. LRS: P urchase of Objects of Art Remittances under the Scheme can be used for purchasing objects of art subject to the provisions of other applicable laws such as the extant Foreign Trade Policy of the Government of India. 33

34. Frequency and Currency of Remittance No restriction on the frequency. However, the total amount of foreign exchange purchased from or remitted through, all sources in India during a financial year should be within the cumulative limit of USD 200,000. The remittances can be made in any freely convertible foreign currency equivalent to USD 200,000 in a financial year. 34

35. LRS: Requirements for the Remitter Designate a branch of an AD through which all the remittances under the Scheme will be made. Maintain the bank account with the bank for a minimum period of one year prior to the remittance. Furnish an application-cum-declaration in the specified format regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme. 35

36. Facilities for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) 36

37. Types of Accounts An NRI or PIO can open, hold and maintain different types of accounts with an AD in India. NRO Savings accounts can also be maintained with the Post Offices in India. However, individuals/ entities of Bangladesh and Pakistan require the prior approval of the RBI. 37

38. Types of Accounts Non-Resident (Ordinary) Rupee Account (NRO Account) Non-Resident (External) Rupee Account (NRE Account) Foreign Currency Non Resident (Bank) Account – [FCNR (B) Account] 38

39. Non-Resident (Ordinary) Rupee Account (1) NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. Savings Account - Normally maintained for crediting legitimate dues / earnings / income such as dividends, interest etc. Interest rates on NRO Savings deposits shall be at the rate applicable to domestic savings deposits. Permissible credits to NRO account are transfers from rupee accounts of non-resident banks, remittances received in permitted currency from outside India through normal banking channels, permitted currency tendered by account holder during his temporary visit to India, legitimate dues in India of the account holder like current income like rent, dividend, pension, interest, etc., sale proceeds of assets including immovable property acquired out of rupee/foreign currency funds or by way of legacy/ inheritance. Eligible debits such as all local payments in rupees including payments for investments as specified by RBI and remittance outside India of current income like rent, dividend, pension, interest, etc., net of applicable taxes, of the account holder. 39

40. Non-Resident (Ordinary) Rupee Account (2) NRI/PIO may remit from the balances held in NRO account an amount not exceeding USD one million per financial year, subject to payment of applicable taxes The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/PIO. The accounts may be held jointly with residents and / or with non-resident Indian. The NRO account holder may opt for nomination facility. NRO (current/savings) account can also be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India. The details of this facility are given in the FAQs on Accounts opened by Foreign Nationals and Foreign Tourists available on the RBI website. Loans to non-resident account holders and to third parties may be granted in Rupees by Authorized Dealer / bank against the security of fixed deposits subject to certain terms and conditions. 40

41. Non-Resident (External) Rupee Account (1) NRE account may be in the form of savings, current, recurring or fixed deposit accounts. Such accounts can be opened only by the non-resident himself and not through the holder of the power of attorney. NRE accounts cannot be held jointly with residents Balances held in the NRE account are freely repatriable. Accrued interest income and balances held in NRE accounts are exempt from Income tax and Wealth tax, respectively. ADs may at their discretion/commercial judgement allow for a period of not more than two weeks, overdrawings in NRE savings bank accounts, up to a limit of Rs.50000 subject to the condition that such overdrawings together with the interest payable thereon are cleared/repaid within a period of two weeks, out of inward remittances through normal banking channels or by transfer of funds from other NRE/FCNR accounts. 41

42. Non-Resident (External) Rupee Account (2) Savings - The interest rates on NRE Savings deposits shall be at the rate applicable to domestic savings deposits. Term deposits – The interest rates are stipulated by the Department of Banking Operations and Development, Reserve Bank of India. At present, with effect from the close of business in India on November 15, 2008, interest rates on NRE deposits for one to three years should not exceed the LIBOR/SWAP rates plus 175 basis points, as on the last working day of the previous month, for US dollar of corresponding maturities. The interest rates as determined above for three year deposits will also be applicable in case the maturity period exceeds three years. Permissible credits to NRE account are inward remittance to India in permitted currency, proceeds of account payee cheques, demand drafts / bankers' cheques, issued against encashment of foreign currency, where the instruments issued to the NRE account holder are supported by encashment certificate issued by AD Category-I / Category-II, transfers from other NRE / FCNR accounts, interest accruing on the funds held in such accounts, interest on Government securities/dividends on units of mutual funds purchased by debit to the NRE/FCNR(B) account of the holder, certain types of refunds, etc. 42

43. Non-Resident (External) Rupee Account (3) Eligible debits are local disbursements, transfer to other NRE / FCNR accounts of person eligible to open such accounts, remittance outside India, investments in shares / securities/commercial paper of an Indian company, etc. Loans up to Rs.100 lakh can be extended against security of funds held in NRE Account either to the depositors or third parties. Such accounts can be operated through power of attorney in favour of residents for limited purpose of withdrawal of local payments or remittances through normal banking channels to the account holder himself. 43

44. Foreign Currency Non Resident (Bank) Account (1) FCNR (B) accounts are only in the form of term deposits of 1 to 5 years All debits / credits permissible in respect of NRE accounts are permissible in FCNR (B) accounts also. Account can be in Pound Sterling, US Dollar, Japanese Yen, Euro, Canadian Dollar and Australian Dollar. In case the depositor with any convertible currency other than designated currency desires to place a deposit in these accounts, authorised dealers may undertake with the depositor a fully covered swap in that currency against the desired designated currency. Such a swap may also be done between two designated currencies. Loans up to Rs.100 lakh can be extended against security of funds held in FCNR(B) deposit either to the depositors or third parties. 44

45. Foreign Currency Non Resident (Bank) Account (2) The interest rates are stipulated by RBI. At present, in respect of FCNR (B) deposits of all maturities contracted effective from November 15, 2008, interest is paid within the ceiling rate of LIBOR / SWAP rates plus 100 basis points for the respective currency/corresponding maturities. On floating rate deposits, interest is be paid within the ceiling of SWAP rates for the respective currency / maturity plus 100 basis points. For floating rate deposits, the interest reset period is six months. When an account holder becomes a person resident in India, deposits may be allowed to continue till maturity at the contracted rate of interest, if so desired by him. Terms and conditions as applicable to NRE accounts in respect of joint accounts, repatriation of funds, opening account during temporary visit, operation by power of attorney, loans/overdrafts against security of funds held in accounts, apply mutatis mutandis to FCNR (B). 45

46. Borrowing Money from Close Relatives Outside India An individual resident can borrow sum not exceeding USD 250,000 or its equivalent from his close relatives staying outside India, subject to the conditions that: the minimum maturity period of the loan is one year; the loan is free of interest; and the amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR account of the NRI. 46

47. Investment on Repatriation Basis (1) NRIs may, without limit, purchase on repatriation basis: Government dated securities / Treasury bills Units of domestic mutual funds; Bonds issued by a public sector undertaking (PSU) in India. Non-convertible debentures of a company incorporated in India. Perpetual debt instruments and debt capital instruments issued by banks in India. 47

48. Investment on Repatriation Basis (2) Shares in Public Sector Enterprises being dis- invested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids. Shares and convertible debentures of Indian companies under the FDI scheme (including automatic route & FIPB), subject to the terms and conditions specified by RBI. Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme, subject to the terms and conditions specified by RBI. 48

49. Investment on Non-Repatriation Basis (1) NRIs may, without limit, purchase on non- repatriation basis : Government dated securities / Treasury bills Units of domestic mutual funds Units of Money Market Mutual Funds National Plan/Savings Certificates Non-convertible debentures of a company incorporated in India 49

50. Investment on Non-Repatriation Basis (2) Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme, subject to the terms and conditions specified by RBI. Exchange traded derivative contracts approved by the SEBI, from time to time, out of INR funds held in India on non-repatriable basis, subject to the limits prescribed by the SEBI. NRIs are, however, not permitted to invest in small savings or Public Provident Fund (PPF). 50

51. Investment in Immovable Property (1) An NRI / PIO / Foreign National who is a person resident in India may acquire immovable property in India other than agricultural land/ plantation property or a farm house out of repatriable and / or non-repatriable funds. Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan require prior approval of the RBI. The payment of purchase price, if any, should be made out of (i) funds received in India through normal banking channels by way of inward remittance from any place outside India or (ii) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank. 51

52. Investment in Immovable Property (2) No payment of purchase price for acquisition of immovable property can be made either by travellers cheque or by foreign currency notes or by other mode other than those specifically permitted as above. An NRI may acquire any immovable property in India other than agricultural land / farm house plantation property, by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India 52

53. Investment in Immovable Property (3) NRI may acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India An NRI may transfer any immovable property in India to a person resident in India. NRI may transfer any immovable property other than agricultural or plantation property or farm house to a person resident outside India who is a citizen of India or to a person of Indian origin resident outside India. 53

54. Investment in Immovable Property (4) In respect of such investments, NRIs are eligible to repatriate: The sale proceeds of immovable property in India if the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels / by debit to NRE / FCNR (B) account. The amount to be repatriated should not exceed the amount paid for the property in foreign exchange received through normal banking channel or by debit to NRE account (foreign currency equivalent, as on the date of payment) or debit to FCNR (B) account. 54

55. Investment in Immovable Property (5) In the event of sale of immovable property, other than agricultural land / farm house / plantation property in India, by NRI / PIO, the repatriation of sale proceeds is restricted to not more than two residential properties subject to certain conditions. If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million per financial year out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bonafide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance. 55

56. Investment in Immovable Property (6) Refund of (a) application / earnest money / purchase consideration made by house-building agencies/seller on account of non-allotment of flats / plots and (b) cancellation of booking/deals for purchase of residential/commercial properties, together with interest, net of taxes, provided original payment is made out of NRE/FCNR (B) account/inward remittances. Housing Loan in rupees availed of by NRIs/ PIOs from ADs / Housing Financial Institutions in India, can be repaid by the close relatives in India of the borrower. 56

57. Facilities to Returning NRIs/PIO Returning NRIs/PIO may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India 57

58. Foreign Currency Account A person resident in India who has gone abroad for studies or who is on a visit to a foreign country may open, hold and maintain a Foreign Currency Account with a bank outside India during his stay outside India, provided that on his return to India, the balance in the account is repatriated to India. However, short visits to India by the student who has gone abroad for studies, before completion of his studies, shall not be treated as his return to India. A person resident in India who has gone out of India to participate in an exhibition/trade fair outside India may open, hold and maintain a Foreign Currency Account with a bank outside India for crediting the sale proceeds of goods on display in the exhibition/trade fair. However, the balance in the account is repatriated to India through normal banking channels within a period of one month from the date of closure of the exhibition/trade fair. 58

59. Resident Foreign Currency Account Returning NRIs /PIOs may open, hold and maintain with an AD in India a Resident Foreign Currency (RFC) Account to transfer balances held in NRE/FCNR(B) accounts. Proceeds of assets held outside India at the time of return, can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment in any form outside India. RFC accounts can be maintained in the form of current or savings or term deposit accounts, where the account holder is an individual and in the form of current or term deposits in all other cases. 59

60. Forex Facilities for Individuals 60 NRIs can be Joint Holders in Residents SB/EEFC/RFC Accounts Residents can be Joint Holders in NRE/FCNR Accounts Residents can gift Shares/Debentures upto USD 50,000 Value Sale Proceeds of FDIs can be credited to NRE/FCNR (B) Account Gifts to NRIs can be credited to NRO Accounts in Rupees Loans to NRI Close Relatives can be given in Rupees Loans given to NRI Close Relatives can be repaid Residents can bear Medical Expenses of NRIs

61. 61 Rupee / Foreign Currency vostro Accounts ECB Procedures simplified Contingency Plan for Bank ATMs Special Dispensation to NSTFDC Service Charges introduced for RTGS Submission of Credit Information to CICs Guidelines for Rehabilitation of Sick SME Units Authorisation Guidelines for PDs revised

62. Bank Rate, Cash Reserve Rate and Statutory Liquidity Ratio 62 Effective DateBank RateCash Reserve Ratio Statutory Liquidity Ratio 05-07-19353.50(a) 5% of DL, (b) 2% of TL- 16-03-19493.00-20.00 06-03-19604.00(a) 5% of DL, (b) 2% of TL- 17-02-19656.003.00% of NDTL- 02-03-19685.00-- 09-01-19716.00-- 31-05-19737.00-- 23-07-19749.00 5.00 - 12-07-198110.00 6.00 - 04-02-1984-9.00- 28-02-1987-9.50- 24-10-1987-10.00-

63. 63 30-07-1988-11.00- 01-07-1989-15.00- 04-07-199111.00-- 09-10-199112.00-- 16-04-199711.0010.00- 25-10-1997-9.7525.00 17-01-199811.0010.50- 19-03-199810.50-- 28-03-1998-10.25- 03-04-199810.00-- 11-04-1998-10.00- 29-04-19989.00-- 29-08-1998-11.00- 02-03-19998.00--

64. 64 02-04-20007.00 9.00 - 22-07-20008.00 - 02-03-20017.008.25- 23-10-20016.507.50- 30-04-20036.004.75- 26-04-2008-7.75- 24-05-2008-8.25- 30-08-2008-9.00- 17-01-2009-5.00- 27-02-2010-5.75- 24-04-2010-6.00- 16-12-2010 24

65. 65 Call/Noti ce Money Rates Commercial Bank Rates Prime Lending Rates of Term Lending Institutions Units of UTI (July- June) Annual (Gross) Redemption Yield of Government of India Securities Deposit RatesLending RatesIDBIIFCIICICI IIBI / IRBI SFCs Divid end Rate Yiel d Rate Year 1 to 3 yrs. Over 3 yrs. & upto 5 yrs. Abov e 5 yrs. SBI Advanc e Rate Key Lending Rates as Prescribed by RBI (All Commerci al Banks including SBI) - Ceiling Rate General Key Lending Rates as Prescribed by RBI (All Commerci al Banks including SBI) - Minimum Rate General Key Lending Rates as Prescribed by RBI (All Commerci al Banks including SBI) - Minimum Rate Selective Credit Control Short - Term (1- 5yrs.) Medium -Term (5- 15yrs.) Long-Term (15 yrs. & Above) 1970-71 6.38 6.00 - 6.507.007.25 7.00- 8.50--- 8.50 (7.00 - 8.50)9.008.50- 7.50- 10.508.007.55 3.85- 4.28 4.32- 4.844.77-5.53

66. 66 1981-82 8.96 8.00- 9.0010.00 16.5019.5013.50 17.50- 19.50 14.00 (12.50- 14.00)14.00 9.15 11.25- 14.0012.50 10.2 9 5.32- 6.43 5.81- 7.02 6.45- 8.00 1990-91 15.85 9.00- 10.0011.00 16.50 16.0016 14.00- 15.00 9.00- 20.0019.50 14.0 3 7.04- 21.70 9.44- 12.70 10.86- 12.04 1991-92 19.5712.0013.00 16.50-19.0019 18.00- 20.00 9.00- 20.0025.00 16.4 0 8.37- 26.26 9.50- 13.42 9.91- 12.38 1999-00 8.87 8.50- 9.50 10.00- 10.50 12.00-12.00-12.50Free 13.60- 17.10 13.50 - 17.0012.5014 12.00- 18.0013.75 10.1 9 3.18- 14.30 6.50- 13.84 9.79- 13.11 2001-02 7.16 7.50- 8.50 8.00- 8.50 11.50-11.00-12.00Free11.5012.50 11.5 9.50- 16.75-- 5.32- 10.96 5.14- 13.85 7.41- 10.86 2008-09 7.67 8.00- 8.75 7.75- 8.50 12.25-11.50-12.50Free------- 4.61- 11.09 5.50- 10.69 6.27- 8.26 2011-12 - 9.00- 9.25 8.50- 9.25 9.50-9.50-10.75-----------

67. INR value against USD 67 YearExchange rate (rupees per US$) 19525.000 19707.576 19758.409 19807.887 198512.369 199017.504 199532.427 200045.000 200648.336 2007 (Oct)38.48 2008 (June)42.51 2008 (Oct)48.88 2009 (Oct)46.37 2010 (Jan 22)46.21 2011 (April)44.17 2011 (Sept 21)48.24 2011 (Nov 17)50.97 2011 (Nov 24)52.1150

68. Gold Price history 68 Year Gold USD/ozt [4] USDozt [4] DJIADJIA USD [5] [5] World GDP USD tn [6]GDPtn [6] US DebtUS Debt USD bn [7]bn [7] Trade Weighted US dollar Index [8] 1970378393.3370 19751408526.453333.0 198059096411.890835.7 19853271,54713.01,82368.2 19903912,63422.23,23373.2 19953875,11729.84,97490.3 200027310,78731.95,662118.6 200551310,71845.18,170111.6 20101,41011,57863.214,02599.9 1970 to 2010 net change, % 3,7921,280...3,691 1975 (post US off gold standard) to 2010 net change, % 9291,259... 2,531 On August 22, 2011 gold reached a new record high of $ 1908.00 at the London Gold Fixing

69. Acquisition and Transfer of Immovable Property 69 FEMA Act imposes certain regulations and restrictions for purchase and transfer of properties in India, by persons resident outside India.

70. A. Non-Resident Indian (NRI) 70 (i) Purchase of immovable property A NRI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property / farm house). (ii) Transfer of immovable property A NRI can transfer any immovable property in India to a person resident in India. He may transfer any immovable property (other than agricultural land/ plantation property / farm house) to an Indian Citizen resident outside India or a PIO resident outside India.

71. 71 (iii) Payment for acquisition of Immovable Property by way of inward remittances through Bank challans or debit to NRE / FCNR(B) / NRO. (iv) Payment by travellers cheques and currency notes prohibited. (v) NRI, who has purchased residential or commercial property under the general permission, no documents to be given to RBI.

72. Gift / Inheritance of Immovable Property 72 A PIO may acquire by way of gift from a person resident in India or a NRI or a PIO. This acquisition can also be by inheritance or settlement.

73. Repatriation of sale proceeds of immovable property 73 Provided the acquisition requirements are met, immovable property sold can be repatriated in foreign exchange through banks. Same position for inheritances and legacy. A NRI / PIO can take out upto US$ 1 million in one financial year, out of those funds. Proper documentation necessary and income tax settlement is also necessary and clearance.

74. 74 Questions?