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No longer current — withdrawn, no replacement on file yet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/2011-12/2 · issued 30 Jan 2012 · ~2 min read
Quick answerRBI consolidated all instructions on remittance facilities for NRIs, PIOs, and foreign nationals into one Master Circular, effective July 1, 2011, with a one-year sunset clause. It covers definitions, current income remittance, asset repatriation, and operational guidelines for authorised dealer banks.
What changed
RBI issued Master Circular No.02/2011-12 consolidating all existing instructions on remittance facilities for NRIs, PIOs, and foreign nationals into a single document. The circular includes a sunset clause, meaning it will be withdrawn on July 1, 2012, and replaced with an updated version. It references FEMA Notifications No.13/2000-RB and No.21/2000-RB dated May 3, 2000, as the governing legal framework.
What it means for you
Banks must now refer to this single Master Circular for all remittance-related instructions, replacing multiple earlier circulars. The consolidation simplifies compliance but requires banks to stay updated as the circular expires in one year. Authorised dealers must ensure remittances of current income and assets adhere to the defined NRI/PIO criteria and tax certification requirements.
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 compliance manuals to reference this Master Circular for NRI/PIO remittance processing.
Train staff on the definitions of NRI and PIO as per FEMA Notification No.13/2000-RB to avoid misclassification.
Ensure remittance of current income (e.g., rent, dividend, pension) from NRO accounts or via CA certification is properly documented and tax-compliant.
Monitor the sunset clause and prepare for the updated Master Circular expected by July 1, 2012.
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 seeking remittance facilities
❓ Common questions
Regulatory timeline
Stated effective dateeffective July 1, 2011
Decoded by BankPulse2026-06-19 00:59 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 under this Master Circular?
NRI means a person resident outside India who is a citizen of India, as per Regulation 2 of FEMA Notification No.13/2000-RB dated May 3, 2000.
Can NRIs remit current income without an NRO account?
Yes, authorised dealer banks may allow repatriation of current income like rent, dividend, or pension based on a Chartered Accountant certificate confirming eligibility and tax payment or provision.
What is the sunset clause for this Master Circular?
The circular has a sunset clause of one year and will stand withdrawn on July 1, 2012, to be replaced by an updated Master Circular.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/2
Master Circular No.02/2011-12
(Updated as on January 30, 2012)
July 01, 2011
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, 2012 and be replaced with an updated Master Circular on the subject.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager-in-Charge
Master Circular on Remittance Facilities for Non-Resident Indians /
Persons of Indian Origin / Foreign Nationals
INDEX
1
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/2 · issued 30 Jan 2012. 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=6494&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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