Tuesday , March 31, 2026 |   03:05:28 IST
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI
About Us Contact Us Newsletters
 
NEWS FLASH
 
Residency of Binny Bansal of Flipkart-fame - ‘Meaning of Being outside India'! (See TII Edit) TP - Section 92BA(i), governing specified domestic transactions, stands omitted without any saving clause & therefore, is to be treated as non-existent in statute - additions based on Section 92BA quashed: ITAT (See Breaking News) TP - Transfer pricing adjustment on international transaction involving payment of interest to AE is not warranted if assessee has already suo motu disallowed entire interest amount u/s 94B: ITAT (See Breaking News) TPO - In case involving reference to Transfer Pricing Officer, time limit for completing assessment is extended by 12 months as per Section 153(4): ITAT (See Breaking News) I-T - Appeal against a final assessment order lies before the Commissioner Appeals, and not directly before the Tribunal: ITAT (See Breaking News) I-T - Pure error of law based on plausible understanding of law, if income was fully disclosed in accounts and neither concealed nor inaccurately reported, does not attract Sec 271(1)(c): HC (See Breaking News) I-T - Period of limitation for passing final assessment order u/s 144C(13) must be determined by combined and harmonious reading of Section 144C and Section 153: ITAT (See Breaking News) TP - As is trite law, ALP of royalty payments to AEs should be determined using the TNMM method: ITAT (See Breaking News) DTAA - In absence of statutory time stipulation, delayed filing of Form 10F cannot be treated as fatal defect so as to deny treaty benefits, particularly when tax residency & eligibility under DTAA are not in dispute: ITAT (See Breaking News) I-T - Competent Authority shall issue Nil Tax Withholding Certificate within stipulated time, if delay will practically render assessee's case infructuous and will be of no avail as F.Y will be over: HC (See Breaking News) I-T - Final assessment order passed beyond time limit prescribed u/s 153 is barred by limitation and is invalid, even if internal timelines within Sec 144C procedure were adhered to: ITAT (See Breaking News) DTAA - Since payment for standard transponder services does not involve any secret process, it is not taxable as royalty in India under Treaty: ITAT (See Breaking News) INTL - Expenditure incurred wholly & exclusively for business purpose cannot be disallowed merely because it was not necessary or profitable: ITAT (See Breaking News) I-T - Section 144C and Section 153 are not mutually exclusive but are mutually inclusive and must be read harmoniously: ITAT (See Breaking News) TP - Mere reclassification of Compulsorily Convertible Debentures into equity & debt components under Ind-AS does not alter their intrinsic nature as debt instruments until actual conversion: ITAT (See Breaking News) TP - Addition framed TPO invalid where transaction in question is covered by binding Advance Pricing Agreement between assessee & CBDT as per Section 92CC: ITAT (See Breaking News)
 
TII SEARCH
 
 
   
Home >>
 

Foreign Exchange Management (Deposit) Regulations, 2016 - Opening of NRO Accounts by Long Term Visa (LTV) holders, changes related to Special Non-Resident Rupee (SNRR) Account and Escrow Account
By TII News Service
Mar 28, 2019 , New Delhi

    

A.P. (DIR Series)

CIRCULAR NO

28/Dated: March 28, 2019

To

All Category - I Authorised Dealers and Authorised Banks

Foreign Exchange Management (Deposit) Regulations, 2016 - Opening of NRO Accounts by Long Term Visa (LTV) holders, changes related to Special Non-Resident Rupee (SNRR) Account and Escrow Account

Attention of Authorised Dealers (ADs) is invited to the Foreign Exchange Management (Deposit) Regulations, 2016 notified vide Notification No. FEMA 5(R)/2016-RB dated April 1, 2016 and A.P.(DIR Series) Circular No.67/2015-16[(1)/5(R)] dated May 5, 2016. The FEM (Deposit) (Amendment) Regulations 2018 i.e FEMA 5(R)(1) have since been notified by the Government of India vide GSR No 1093(E) dated November 9, 2018 necessitating following changes to the extant instructions.

i. Authorized Dealers may allow a Foreign Portfolio Investor (FPI) and a Foreign Venture Capital Investor (FVCI), registered with the Securities and Exchange Board of India (SEBI) to open and maintain a non-interest bearing foreign currency account for the purpose of making investment in accordance with the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017, as amended from time to time.

ii. Authorized Dealers may open only one Non-Resident Ordinary (NRO) Account for a citizen of Bangladesh or Pakistan, belonging to minority communities in those countries, namely Hindus, Sikhs, Buddhists, Jains, Parsis and Christians, residing in India and who has been granted a Long Term Visa (LTV) by the Central Government. The account will be converted to a resident account once such a person becomes a citizen of India within the meaning of the Citizenship Act, 1955. This account can also be opened if such person has applied for LTV which is under consideration of the Central Government, in which case, the account will be opened for a period of six months and may be renewed at six monthly intervals subject to the condition that the individual holds a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned. The opening of such NRO accounts will be subject to reporting of the details of the accounts opened by the concerned Authorised bank, to the Ministry of Home Affairs (MHA) on a quarterly basis. The report shall contain details of (i) name/s of the individual/s; (ii) date of arrival in India; (iii) Passport No. and place/country of issue; (iv) Residential Permit/Long Term Visa reference and date & place of issue; (v) name of the FRO/FRRO concerned; (vi) complete address and contact number of the branch where the bank account is being maintained. The Head Office of the AD bank shall furnish the above details on a quarterly basis to the Under Secretary (Foreigners), Ministry of Home Affairs, NDCC-II Building, Jai Singh Road, New Delhi - 110 001. AD banks are advised to ensure strict compliance to these instructions.

iii. In terms of extant instructions, SNRR accounts cannot be held for more than seven years. It has now been decided that SNRR accounts opened by persons resident outside India may remain operative beyond the stipulated period of seven years with RBI approval. Further, the restriction of seven years will not be applicable to SNRR accounts opened by persons resident outside India who are registered with SEBI and wish to make investment in India in accordance with Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017, as amended from time to time.

iv. The extant Schedule 5 of the Foreign Exchange Management (Deposit Regulations) 2016 pertaining to Escrow Accounts has been replaced to align the same with the provisions of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017, in terms of which, Escrow Accounts can be opened by residents and non-residents for acquisition/transfer of capital instruments/convertible notes and can also be funded by guarantee(s).

2. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

3. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

[RBI/2018-19/155]

(R K Moolchandani)
Chief General Manager

 
 
INTL TAXATION INTL MISC TP FDI LIBRARY VISA BIPA NRI TII
  • DTAA
  • Circulars (I-T Act, 1922)
  • Limited Treaties
  • Other Treaties
  • TIEAs
  • Notifications
  • Circulars
  • Relevant Sections of I-T Rules,1962
  • Instructions
  • Administrative Orders
  • DRP Panel
  • I-T Act, 1961
  • MLI
  • Relevant Portion of I-T Act,1922
  • GAAR
  • MAP
  • OECD Conventions
  • Draft Guidelines
  • DTC Bill
  • Committee Reports
  • FATCA
  • Intl-Taxation
  • Finance Acts
  • Manual on EoI
  • UN Model Taxation
  • Miscellaneous
  • Cost Inflation Index
  • Union Budget
  • Information Security Guidelines
  • APA Annual Report
  • APA Rules
  • Miscellaneous
  • Relevant Sections of Act
  • Instructions
  • Circulars
  • Notifications
  • Draft Notifications
  • Forms
  • TP Rules
  • APA FAQ
  • UN Manual on TP
  • Safe Harbour Rules
  • US Transfer Pricing
  • FEMA Act
  • Exchange Manual
  • Fema Notifications
  • Master Circulars
  • Press Notes
  • Rules
  • FDI Circulars
  • RBI Circulars
  • Reports
  • FDI Approved
  • RBI Other Notifications
  • FIPB Review
  • FEO Act
  • INTELLECTUAL PROPERTY
  • CBR Act
  • NBFC Report
  • Black Money Act
  • PMLA Instruction
  • PMLA Bill
  • FM Budget Speeches
  • Multimodal Transportation
  • Vienna Convention
  • EXIM Bank LoC
  • Manufacturing Policy
  • FTDR Act, 1992
  • White Paper on Black Money
  • Posting Policy
  • PMLA Cases
  • Transfer of Property
  • MCA Circular
  • Limitation Act
  • Type of Visa
  • SSAs
  • EPFO
  • Acts
  • FAQs
  • Rules
  • Guidelines
  • Tourist Visa
  • Notifications
  • Arbitration
  • Model Text
  • Agreements
  • Relevant Portion of I-T Act
  • I-T Rules, 1962
  • Circulars
  • MISC
  • Notification
  • About Us
  • Contact Us
  •  
     
    A Taxindiaonline Website. Copyright © 2010-2025 | Privacy Policy | Taxindiainternational.com Pvt. Ltd. OPC All rights reserved.