As per the notification issued by Reserve Bank Of India (RBI), Indians with non resident accounts are now allowed to hold their accounts in the country in any currency which is fully convertible.
This will offer better options to Non Resident Indians (NRIs) and Persons Of Indian Origin (PIOs) in the holding of accounts, and reduces the risk from fluctuations in major currencies.
Earlier, FCNR(B) account holders (individuals) were allowed to open and maintained in only five different currencies such as Pound Sterling, US Dollar, Japanese Yen, euro, Canadian Dollar and Australian Dollar. But from now, authorized banks in India will be allowed to accept FCNR (B) deposits in any permitted currency.
‘Permitted currency’ for this purpose would mean a foreign currency which is freely convertible.
RBI Notification On Opening Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR(B)] account in any freely convertible currency – liberalisation
As per the RBI notification, “a person resident in India is 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.”
“An investor can retain and reinvest the income earned on investments made under the Liberalised Remittance Scheme.”
RBI Notification On (i) Repatriation of income and sale proceeds of assets held abroad by NRIs who have returned to India for permanent settlement (ii) repatriation of income and sale proceeds of assets acquired abroad through remittances under Liberalised Remittance Scheme – Clarification