As per existing guidelines , a resident may make payment in rupees towards meeting expenses on account of boarding, lodging and services related thereto or travel to and from and within India of a person resident outside India who is on a visit to India.
Now, it has been decided by RBI that where the medical expenses in respect of NRI close relative (relative as defined in Section 6 of the Companies Act, 1956) are paid by a resident individual, such a payment being in the nature of a resident to resident transaction may be covered under the term “services related thereto” under Regulation 2(i) of Notification No. FEMA 16 /2000- RB dated May 3, 2000, ibid.
Thus , now , a resident under automatic route , can meet the medical expenses of his close NRI relatives .
Ref:
RBI/2011-12/184---A.P. (DIR Series) Circular No. 20 dated 16th September 2011
Now, it has been decided by RBI that where the medical expenses in respect of NRI close relative (relative as defined in Section 6 of the Companies Act, 1956) are paid by a resident individual, such a payment being in the nature of a resident to resident transaction may be covered under the term “services related thereto” under Regulation 2(i) of Notification No. FEMA 16 /2000- RB dated May 3, 2000, ibid.
Thus , now , a resident under automatic route , can meet the medical expenses of his close NRI relatives .
Ref:
RBI/2011-12/184---A.P. (DIR Series) Circular No. 20 dated 16th September 2011
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