Master Circular on Remittance Facilities for NRIs/PIOs/Foreign Nationals
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/2 · issued 01 Jul 2010 · ~2 min read
Quick answerRBI consolidated remittance rules for NRIs, PIOs, and foreign nationals into one master circular effective July 1, 2010, with a one-year sunset clause. It covers repatriation of current income, assets, salary, and sale proceeds of residential property, requiring AD banks to ensure tax compliance and proper documentation.
What changed
RBI issued Master Circular No. 02/2010-11 consolidating all existing instructions on remittance facilities for NRIs, PIOs, and foreign nationals into a single document. The circular includes a sunset clause of one year, meaning it will stand withdrawn on July 1, 2011, and be replaced by an updated version.
What it means for you
Banks must now refer to this master circular as the single source for remittance rules, replacing earlier scattered notifications. AD banks need to ensure that remittances of current income (rent, dividend, pension, interest) are allowed only with proper tax certification or NRO account debits. Repatriation of assets by foreign nationals of non-Indian origin requires RBI approval unless specifically exempted under FEMA.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal remittance processing guidelines to align with this master circular.
Ensure NRO account debits for current income remittances are permissible only with tax compliance.
Verify that remittances of assets by foreign nationals of non-Indian origin have RBI approval unless exempted.
Maintain records of Chartered Accountant certifications for remittances by NRIs without NRO accounts.
Prepare for the sunset clause by tracking the circular's validity until July 1, 2011.
Who it affects
All Authorised Dealer Category – I banks, Authorised banks handling NRI/PIO remittances, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), Foreign nationals of non-Indian origin
❓ Common questions
Regulatory timeline
Stated effective dateeffective July 1, 2010
Decoded by BankPulse2026-06-19 05:51 IST
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the definition of NRI and PIO under this circular?
NRI means a person resident outside India who is a citizen of India. PIO means a citizen of any country other than Bangladesh or Pakistan who at any time held an Indian passport, or whose parents/grandparents were Indian citizens, or who is a spouse of an Indian citizen or such person.
Can NRIs remit current income like rent or pension without an NRO account?
Yes, AD banks may allow repatriation of current income for NRIs who do not maintain an NRO account, based on a Chartered Accountant certificate confirming eligibility and tax payment or provision.
What is the sunset clause mentioned in this circular?
The master circular has a sunset clause of one year, meaning it will stand withdrawn on July 1, 2011, and be replaced by an updated master circular on the same subject.
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/2
Master Circular No. 02/2010-11
July 01, 2010
To,
All Authorised Dealer Category – I banks and Authorised banks
Madam / Sir,
Master Circular on Remittance Facilities for Non-Resident Indians /
Persons of Indian Origin / Foreign Nationals
Remittance facilities for Non-Residents /Persons of Indian Origin /Foreign Nationals are being governed by sub-section (1) and (2) of section 6 of the Foreign Exchange Management Act, 1999 read with FEMA Notification No.13/2000-RB and FEMA Notification No. 21/2000-RB dated May 3, 2000, as amended from time to time.
2.This Master Circular consolidates the existing instructions on the subject of “Remittance facilities for Non-Resident Indians / Persons of Indian Origin/Foreign Nationals” at one place. The list of underlying circulars/notifications consolidated in this Master Circular is furnished in Appendix.
3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2011 and be replaced with an updated Master Circular on the subject.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge
INDEX
1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/2 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5755&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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