Such housing loans availed by NRI may also be repaid by resident close relative (relative as defined in Section 6 of the Companies Act, 1956), of the Non-Resident Indian by crediting the borrower's loan account through the bank account of such relative.
The Reserve Bank of India has allowed resident individuals torepay housing loans in rupee on behalf of their close relatives, whoare non-resident Indians (NRIs) or People of Indian origin (PIO).
"..It has been decided that where an authorised dealer (bank) in Indiahas granted loan to a non-resident Indian..., such loans may also berepaid by resident close relative of the NRI by crediting the
borrower's loan account through the bank account of such relative,"
However, this repayment facility is restricted to housing loan only,
Ref:RBI/2011-12/183 A.P. (DIR Series) Circular No. 19 dated 16 September 2011