NewswireToday - /newswire/ -
Emeryville, CA, United States, 2006/11/01 - INRnews, the leading site for news and views on the real estate and property market in India, reports that the Reserve Bank of India (RBI) has allowed non resident Indians (NRI) and people of Indian origin (PIOs) to remit property sale proceeds.
INRnews reports that the Reserve Bank of India (RBI) in its mid-term review of monetary policy has allowed non resident Indians (NRI) to remit abroad up to $1 million per year from the sale of immovable property in India.
Until now, NRIs and people of Indian origin were required to lock-in sale proceeds in their non-resident ordinary accounts for a few years.
Proceeds of sale of property acquired as an inheritance, gift or through purchases can be credited to NRO accounts. The annual ceiling on total remittances out of NRO accounts is $1 million.
The Reserve Bank of India also announced measures to liberalise overseas investment by residents, doubling the limits from $25,000 to $50,000 per financial year. The limit will cover gifts or donations as well as investment by resident individuals in overseas companies. The existing provision for private travel up to $10,000 per financial year will continue.
These and other measures announce by the Reserve Bank of India are steps that the central bank is taking towards fuller convertibility of the Indian Rupee. In other moves, the central bank also eased norms for corporates to set up offices abroad by increasing the limit of remittances for the purpose, enhanced overseas investment limits for mutual funds, expanded limits for External Commercial Borrowings (ECBs) and also allowed prepayment of ECBs.
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