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Special scheme for retention of foreign assets


NRIs returning to India for exploring the possibility of setting up industries or business in India or for any other exploratory purpose and who are not able to liquidate the assets for some trial period could earlier apply to the Central Office of the RBI in Form FAD-1 for continuing to hold such assets. This application had to be made within 90 days, of the date of return to India. Such permission was given on merits, for holding foreign assets for upto 5 years.

In case of returning Indians eligible to avail of the facility stated above, there was also an option to surrender foreign currency balances as stated in the previous para on their arrival in India with a right to retransfer the amount of foreign country, within a period of 5 years from the date of return to India or within such extended period as may be allowed by Reserve Bank of India.

In the light of the granting of general permission in regard to foreign currency assets of returning Indians vide Circular No. 51, dated 22nd September, 1992, the special scheme / reconversion facilities explained above have been withdrawn. The withdrawal as also the transitional provisions have been explained in para 4 of the said circular.
 


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