Credits to an account, of funds emanating from a local source would be permissible only if the funds are of a repatriable nature i.e. funds which are eligible to be remitted abroad. Funds held only in NRE accounts can be repatriated abroad freely. Funds held in NRO accounts which would generally be from local source cannot be repatriated outside India. Funds held in NRSR account also cannot be repatriated. The principal amount of the deposit is not eligible for repatriation.
Banks redesignate such accounts as resident accounts on return of the account holder to India.
We pay interest at the contracted rate till the maturity of the deposit if the deposit is held for the full term even after conversion into resident rupee account. Banks would treat the deposits held in FCNR accounts as resident deposits but would continue to pay interest at the contracted rate till maturity of the deposit. Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bonafide residential purpose. They are, therefore, not required to obtain permission of Reserve Bank. IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.