The Reserve Bank of India (RBI) has come out with a series of notifications, liberalising the Foreign Exchange Management Act (FEMA), 1999, relating to non-resident Indians (NRIs) and Persons of Indian Origin (PIOs).
This follows the recommendations of the committee to review the facilities for individuals under the act.
The RBI has allowed resident individuals to include non-resident close relatives as a joint holder in their resident bank accounts on 'former or survivor' basis. However, such NRI close relatives shall not be eligible to operate the account during the life time of the resident account holder.
Similarly, the RBI has decided to allow NRIs to open NRE / FNCR (B) account with their resident close relatives on 'former or survivor' basis. The resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with extant instructions during the life time of the NRI/ PIO account holder.
The RBI has also decided to double the ceiling for transfer of shares/convertible debentures as a gift given to an NRI by a resident individual, from the rupee equivalent of $25,000 during a calendar year to $50,000 during a financial year.
By another notification, the RBI has decided that resident individuals may be permitted to include resident close relatives as a joint holder in their Exchange Earners Foreign Currency (EEFC) and Resident Foreign Currency (RFC) accounts, again on a 'former or survivor' basis.