What is FEMA?
Foreign Exchange Management Act (FEMA) is an act enacted by the government of India for the facilitation of external trades and payments. It aimed to develop and maintain the Indian Foreign Exchange Market.
NRIs Should Adhere To FEMA Regulations In The Following Cases:
Who Is An NRI For Banking & Investments Purposes According To FEMA Regulations?
A person residing in India for more than 182 days during the course of preceding financial year but does not include :
i) A person who has gone out of India or who stays outside India, in either case –
– for or on taking up employment outside India; or
– for carrying on a business or vocation outside India; or
– for any other purpose, in such circumstances as would
indicate his intention to stay outside India for an uncertain period.
ii) A person who has come to or stay in India, in either case, otherwise than –
– for or on taking up employment inside India; or
– for carrying on business or vocation in India, or
– for any other purpose in such circumstances as would
indicate his intention to stay in India for an uncertain period.
Banking Regulations For NRI Under FEMA:
FEMA has laid out various rules and regulations for conducting Banking activities in India by NRIs.The first and foremost thing is that a NRI cannot hold a resident savings account in India. And if a resident Indian moves out of India and becomes a NRI then either the resident savings account is to be closed or converted into an NRO account. The NRIs can open any of the following accounts for making any financial transactions in India:
1) NRO (Non-Resident Ordinary Account)
2) NRE (Non-Resident External Account)
3) FCNR (Foreign Currency Non-Resident Account)
4) RFC (Resident Foreign Currency Account)
Why Ashutosh Financial Services?
FEMA or Foreign Exchange Management Act has a set of rules and regulations that are often ignored or disregarded due to the lack of information and awareness among the NRIs. The FEMA has set very strict rules and penalties that can be used against NRIs who are found in contravention of the rules. It is therefore advisable for NRIs to follow the applicable rules and regulations laid down by the government of India to have hassle-free and complied financial activities in India.
We at Ashutosh NRI Services have been advising NRIs for more than 2 decades on matters relating to NRIs Banking and Financial activities in India; which falls under the legislation of FEMA. Our qualified and experienced research team keeps its eye on the updates in the Acts and Regulations related to NRIs, so that the updated information can be better used to serve our clients. We also regularly conduct public presentations, webinars, and broadcast on FEMA-related updates.
Our Aim :
Our aim is to become your one-stop solution for your financial needs. Through our expert and qualified team, we try to give you the best advice regarding your investments. We also keep ourselves updated with all the activities happening in the world of finance. We aim to provide you with quality & unbiased services to secure your goals and future needs. We at Ashutosh Financial Services, are committed to continuously providing financial services to our investors to the best of our ability.