📄 Source: Reserve Bank of India · RBI/2007-2008/243
Quick answerRBI consolidated remittance rules for NRIs, PIOs, and foreign nationals under FEMA. Key updates: current income remittance allowed with CA certification, asset repatriation up to USD 1 million per financial year for eligible foreign nationals of non-Indian origin (retired from employment in India, inherited assets, or widow of Indian citizen), and clear definitions of NRI/PIO. Valid until July 1, 2008, when it will be replaced.
What changed
This Master Circular consolidates all existing instructions on remittance facilities for NRIs, PIOs, and foreign nationals as of January 1, 2008, into a single document. It replaces earlier circulars and includes a sunset clause, standing withdrawn on July 1, 2008, when an updated version will be issued.
What it means for you
Banks must now refer to this single circular for remittance rules, simplifying compliance. The circular clarifies that current income remittance is freely allowed with CA certification, and asset repatriation for eligible foreign nationals of non-Indian origin is capped at USD 1 million per financial year, with exclusions for Nepal and Bhutan citizens. Banks need to ensure proper documentation and tax compliance for all remittances.
What you must do
Update internal guidelines to reference this Master Circular for all NRI/PIO/foreign national remittance requests.
Verify CA certification and tax payment proof for current income remittances, even for those without NRO accounts.
For foreign nationals of non-Indian origin, enforce the USD 1 million per financial year cap on asset remittances only for eligible categories (retired from employment in India, inherited assets, or widow of Indian citizen) and collect required documents (acquisition proof, undertaking, CA certificate). Note that this facility is not available to citizens of Nepal and Bhutan.
Ensure NRI/PIO definitions are correctly applied, excluding Bangladesh and Pakistan citizens from PIO status.
Prepare for the sunset clause by planning to adopt the updated circular after July 1, 2008.
Who it affects
All Authorised Persons in Foreign Exchange (banks and dealers), Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Foreign nationals with assets in India, Chartered Accountants certifying remittances
Regulatory timeline
Decoded by BankPulse2026-06-19 16:16 IST
Superseded by — Master Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationa
Status change: superseded12 Jul 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the maximum amount a foreign national of non-Indian origin can remit from asset sale in India?
An eligible foreign national of non-Indian origin (who has retired from employment in India, inherited assets from a person resident in India, or is a widow of an Indian citizen who was resident in India) can remit up to USD 1 million per financial year (April-March), subject to producing documentary evidence of acquisition/inheritance, an undertaking, and a CA certificate as per CBDT Circular No.10/2002. This facility is not available to citizens of Nepal and Bhutan.
📜 Read the original circular — full text as issued by RBI
6.1 Repatriation of sale proceeds of residential
property purchased by NRI / PIO is permitted to the extent of the amount paid
for acquisition of immovable property in foreign exchange received through banking
channels. The facility is restricted to not more than two such properties.
6.2
Authorised dealer banks may permit repatriation of amounts representing the refund
of application / earnest money / purchase consideration made by the house building
agencies / seller on account of non-allotment of flat / plot / cancellation of
bookings / deals for purchase of residential / commercial property, together with
interest, if any (net of income tax payable thereon), provided the original payment
was made out of NRE / FCNR (B) account of the account holder, or remittance from
outside India through normal banking channels and the authorised dealer bank is
satisfied about the genuineness of the transaction. Such funds may also be credited
to the NRE / FCNR (B) account of the NRI / PIO, if they so desire.
6.3
Authorised dealer banks may allow repatriation of sale proceeds of residential
accommodation purchased by NRIs/PIO out of funds raised by them by way of loans
from the authorized dealer banks / housing finance institutions to the extent
of such loan/s repaid by them out of foreign inward remittances received through
normal banking channel or by debit to their NRE / FCNR
(B)
account.
6.4 Authorisation to Regional Rural Banks (RRBs):
With a view to make foreign exchange services available to the NRIs/PIO on a wider
scale, RRBs are now authorised to open and maintain FCNR (B) Deposit accounts
also by NRIs/PIO.
6.5. Repatriation of maturity proceeds
of FCNR (B) deposits:
AD Category-I banks and authorised
banks are permitted to make remittance of the maturity proceeds of FCNR (B) deposits
to the third parties outside India, provided the transaction is specifically authorised
by the account holder and the authorised dealer is satisfied about the bonafides
of the transaction.
6.6 ESOP to NRI Employees:
Authorised
dealers are permitted to grant Rupee loans to NRIs employees of Indian companies
for acquiring shares of the companies under the ESOP Scheme. The loan scheme should
be as per the policy approved by the bank’s Board and would further be subject
to the conditions indicated in AP (DIR Series) Circular No. 7 dated August 22,
2007.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/243 · issued 21 Feb 2008. The plain-English explanation above is BankPulse’s own independent summary.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI consolidated remittance rules for NRIs, PIOs, and foreign nationals under FEMA. Key updates: current income remittance allowed with CA certification, asset repatriation up to USD 1 million per financial year for eligible foreign nationals of non-Indian origin (retired from employment in India, inherited assets, or widow of Indian citizen), and clear definitions of NRI/PIO. Valid until July 1, 2008, when it will be replaced.
Q2. Who does this circular apply to?
All Authorised Persons in Foreign Exchange (banks and dealers), Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Foreign nationals with assets in India, Chartered Accountants certifying remittances
Q3. What is the first thing you should do about it?
Update internal guidelines to reference this Master Circular for all NRI/PIO/foreign national remittance requests.
Update internal guidelines to reference this Master Circular for all NRI/PIO/foreign national remittance requests.
Verify CA certification and tax payment proof for current income remittances, even for those without NRO accounts.
For foreign nationals of non-Indian origin, enforce the USD 1 million per financial year cap on asset remittances only for eligible categories (retired from employment in India, inherited assets, or widow of Indian citizen) and collect required documents (acquisition proof, undertaking, CA certificate). Note that this facility is not available to citizens of Nepal and Bhutan.
Ensure NRI/PIO definitions are correctly applied, excluding Bangladesh and Pakistan citizens from PIO status.
Prepare for the sunset clause by planning to adopt the updated circular after July 1, 2008.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All Authorised Persons in Foreign Exchange (banks and dealers), Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Foreign nationals with assets in India, Chartered Accountants certifying remittances), your first concrete step on “Master Circular on Remittance Facilities for NRIs/PIOs/Foreign Nationals (2008)” is: “Update internal guidelines to reference this Master Circular for all NRI/PIO/foreign national remittance requests.” (RBI issued this 21 Feb 2008).
Circular: RBI/2007-2008/243 -- Master Circular on Remittance Facilities for NRIs/PIOs/Foreign Nationals (2008)
Issued: 21 Feb 2008
Action required: Update internal guidelines to reference this Master Circular for all NRI/PIO/foreign national remittance requests.
Action required: Verify CA certification and tax payment proof for current income remittances, even for those without NRO accounts.
Action required: For foreign nationals of non-Indian origin, enforce the USD 1 million per financial year cap on asset remittances only for eligible categories (retired from employment in India, inherited assets, or widow of Indian citizen) and collect required documents (acquisition proof, undertaking, CA certificate). Note that this facility is not available to citizens of Nepal and Bhutan.
Action required: Ensure NRI/PIO definitions are correctly applied, excluding Bangladesh and Pakistan citizens from PIO status.
Action required: Prepare for the sunset clause by planning to adopt the updated circular after July 1, 2008.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 21 Jun 2026, 03:37 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3635&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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