NRI Investments in Company Deposits
  1. Can NRIs keep deposits with companies in India with repatriation benefits?
  1. Do NRIs need permission of reserve Bank for placing funds in fixed deposits with firms/companies on non- repatriation basis?
  1. Are NRIs permitted to invest in Commercial Paper(CP) issued by Indian companies?

 

Ans.I

Yes. NRIs are permitted to keep deposits with public limited companies in India for a minimum period of three years subject to certain ceilings/conditions. Application for the purpose is required to be made by the company receiving the deposits through an authorized dealer.


Ans.II

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, subject to certain ceilings/conditions.


Ans.III

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 transferable.