The Reserve bank of India released Notification No. FEMA 13 (R)/2016-RB, dated 01.04.2016, wherein it has notified the Foreign Exchange Management (Remittance of Assets) Regulations, 2016 in exercise of the powers conferred by Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in supersession of Notification No. FEMA 13/2000-RB dated May 3, 2000, as amended from time to time.

RBI has notified these rules in respect of remittance outside India by a person whether resident in India or not, of assets in India. Following are the major highlights of the new regulations:

1. These regulations mention that they shall come into force from the date of their publication in the official Gazette. These regulations were published in the Official Gazette of Government of India, dated 01.04.2016 [G.S.R. No. 388(E)].

2. Definitions: The regulations have defined 'The Non- Resident Indian' (NRI) and 'Person of Indian Origin' (PIO) to have the same meaning assigned under the Foreign Exchange Management (Deposit) Regulations, 2016. Also, the regulations have defined 'Remittance of asset' to mean remittance outside India of funds representing a deposit with a bank or a firm or a company, provident fund balance or superannuation benefits, amount of claim or maturity proceeds of Insurance policy, sale proceeds of shares, securities, immovable property or any other asset held in India in accordance with the provisions of the Act or rules or regulations made there under.

3. The regulations prohibit any person, whether resident in India or not, to make remittance of any asset held in India by him or by any other person without prior permission from RBI.

4. Permission for remittance of assets in certain cases have been provided to the following persons in accordance with the conditions prescribed in the regulations:

a. A citizen of foreign state, not being a Person of Indian origin (PIO) or a citizen of Nepal or Bhutan;

b. A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO);

c. An authorized dealer in India.

5. Permission has been given to an Indian entity to remit the amount being its contribution towards the provident fund/ superannuation/ pension fund in respect of the expatriate staff in its employment that are resident in India but not permanently resident therein.

6. Permission for remittance of assets on closure or remittance of winding up proceeds of branch office/ liaison office (other than project office) may be granted on application to the Authorized Dealer along with supporting documents.

7. Specific permission may be obtained from RBI by a person who desires to make a remittance of:

a. Assets exceeding USD 1,000,000 per financial year;

b. Remittance to a person resident outside India on the ground that hardship will be caused to such a person if remittance from India is not made.

8. Any transaction involving remittance of assets under these regulations shall be subject to the applicable tax laws in India.

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