Monday, September 19, 2011

Residents can now meet the medical expenses of his NRI relatives in India

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 .

RBI/2011-12/184---A.P. (DIR Series) Circular No. 20 dated 16th September 2011

No comments:

Post a Comment