Can NRIs keep deposits with companies in India with repatriation
benefits ?
Yes. NRIs are permitted to keep deposits with public limited companies
in India for a minimum period of three years subject to ceilings prescribed
under the Companies (Acceptance of Deposits) Rules,1975. Application
for the purpose is required to be made by the company receiving the
deposits through an authorised dealer.
Do NRI need permission of Reserve Bank for placing funds in fixed
deposits with firms/companies on non-repatriation basis ?
Yes. Permission for placement of funds in fixed deposits with firms/
companies in India is granted by Reserve Bank on application by the
depositor or the deposit accepting firm/company, on non-repatriation
basis. The total deposits received by the firm/company from non-residents/residents,
however, should be within the ceiling prescribed under the Companies
(Acceptance of Deposits) Rules, 1975.
Are NRIs permitted to invest in Commercial Paper (CP) issued by Indian
companies ?
Yes. General permission has been granted by Reserve Bank to Indian
companies to issue CP to NRI individuals subject to the conditions
that the amount invested will not be repatriated outside India and
the CP will not be transfer.
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