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
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
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
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
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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