The RBI decision will give NRIs more options in the holding of accounts, and lessen the risk from fluctuations in major currencies.
The Reserve Bank of India (RBI) has said Indians, who have non-resident accounts in the country, can now hold them in any currency which is fully convertible.The move is likely to help NRIs/Persons of India Origin as it will give them more options in the holding of accounts, and lessen the risk from fluctuations in major currencies.
Earlier, FCNR(B) account holders were allowed to hold accounts in only certain currencies such as the Pound Sterling, US dollar, Japanese yen, euro, Canadian dollar and Australian dollar.
“...it has been decided that Authorised Dealer banks in India may be permitted to accept Foreign Currency (Non-Resident) Account (Banks) deposits in any permitted currency.” It may be noted that ‘Permitted currency’ for this purpose would mean a foreign currency which is freely convertible,” RBI said in a notification.
“The Committee to Review the Facilities for Individuals under Foriegn Exchange Management Act, 1999 in its Report has recommended that FCNR(B) accounts may be permitted to be opened in any freely convertible currency,” RBI said.
RBI also said that any citizen who was earlier residing in a foreign country can own or transfer property or other assets in that nation if it was acquired during the time of his residence there.
“... a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India,” RBI said.
In a clarification issued by it regarding repatriation of income and sale proceeds of assets held abroad by NRIs who have returned to India permanently, RBI said an investor can retain and reinvest the income earned on investments made under the Liberalised Remittance Scheme.
The bank said that clarifications are as per relevant sections of the Foreign Exchange Management Act of 1999.
IDFC Fixed Maturity Plan Yearly Series 52 new fund offer closes 20th October
IDFC Mutual Fund has launched IDFC Fixed Maturity Plan Yearly Series 52, a close-ended income scheme.
The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments maturing on or before the maturity of the scheme. The tenure of the scheme is one year.
The new issue closes on 20th October. The minimum investment amount is Rs10,000.
CRISIL Short Term Bond Fund Index is the benchmark index. Anupam Joshi is the fund manager.
DLF Pramerica launches ‘U-Protect’: a lump-sum benefit pure term insurance plan
DLF Pramerica Life Insurance Co. Ltd. (DPLI) announced the launch of DLF Pramerica ‘U-Protect’, a lump-sum benefit pure term insurance plan that provides customers a high life protection cover by paying an affordable premium. The premium rates are substantially lower for female lives, making the plan particularly attractive for women customers. The plan also promotes a healthy lifestyle by offering a discount on premium for non-tobacco users.
Elaborating on the product, Pavan Dhamija, managing director and CEO, DPLI said, “With a minimum annual premium of Rs4,000/-, DLF Pramerica ‘U-Protect’ is affordable for customers across multiple income groups. The policy term ranges from 10 years to 30 years offering customers the option to buy protection cover for a longer period. The minimum Sum Assured (protection coverage) offered in this plan is Rs25,00,000/- and customers have an option to augment this amount by opting for additional riders for Accidental Death Benefit (ADB) or Critical Illness (CI).”
“For customers who opt for the CI Rider, the plan provides payment of the Rider Sum Assured upon diagnosis of a covered critical illness, while the life cover continues till the end of the policy term”, added Dhamija.