CA NeWs Beta*: RBI allows residents to pay housing loans ,medical epensesof NRI relatives

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Monday, September 19, 2011

RBI allows residents to pay housing loans ,medical epensesof NRI relatives

MUMBAI: The Reserve Bank of India has allowed resident individuals to
repay housing loans in rupee on behalf of their close relatives, who
are non-resident Indians (NRIs) or People of Indian origin (PIO).

"..It has been decided that where an authorised dealer (bank) in India
has granted loan to a non-resident Indian..., such loans may also be
repaid by resident close relative of the NRI by crediting the
borrower's loan account through the bank account of such relative,"
the apex bank said in a notification.

However, this repayment facility is restricted to housing loan only, it noted.

In another circular, the central bank allowed resident individuals to
pay for medical expenses of their non-resident close relatives, who
are on visit to India.

Presently, a resident individual can pay bills of their NRI kins for
boarding, lodging, travel to and from and within India.

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