Company Deposits

Can NRIs keep deposits with companies in India with repatriation benefits ?

Yes. NRIs are permitted to keep deposits with public limited companies in India for a minimum period of three years subject to ceilings prescribed under the Companies (Acceptance of Deposits) Rules,1975. Application for the purpose is required to be made by the company receiving the deposits through an authorised dealer.

Do NRI need permission of Reserve Bank for placing funds in fixed deposits with firms/companies on non-repatriation basis ?

Yes. Permission for placement of funds in fixed deposits with firms/ companies in India is granted by Reserve Bank on application by the depositor or the deposit accepting firm/company, on non-repatriation basis. The total deposits received by the firm/company from non-residents/residents, however, should be within the ceiling prescribed under the Companies (Acceptance of Deposits) Rules, 1975.

Yes. General permission has been granted by Reserve Bank to Indian companies to issue CP to NRI individuals subject to the conditions that the amount invested will not be repatriated outside India and the CP will not be transfer.