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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No longer current — withdrawn, no replacement on file yet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/2012-13/8 · issued 12 Oct 2012 · ~2 min read

Quick answerRBI consolidated remittance rules for NRIs, PIOs, and foreign nationals under FEMA. Key updates include definitions, current income repatriation, asset sale proceeds, and student facilities. Banks must follow these instructions until July 1, 2013.

What changed

This Master Circular consolidates all existing instructions on remittance facilities for NRIs, PIOs, and foreign nationals into a single document. It includes definitions, permissible debits to NRO accounts, and conditions for repatriation of current income and assets. The circular has a sunset clause of one year, expiring on July 1, 2013.

What it means for you

Banks must use this circular as the single reference for processing remittance requests from NRIs, PIOs, and foreign nationals. It clarifies that current income like rent, dividend, and pension can be repatriated from NRO accounts or via CA certification. Asset repatriation requires RBI approval unless covered under FEMA provisions.

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 guidelines to align with this Master Circular for remittance processing.
Ensure NRO account debits for current income repatriation are permissible and tax-compliant.
Verify NRI/PIO status using the defined criteria before allowing asset repatriation.
Prepare for the sunset clause by planning to adopt the updated circular by July 1, 2013.

Who it affects

All Authorised Dealer Category – I banks, Authorised banks handling remittances, NRIs and PIOs seeking remittance facilities, Foreign nationals on employment in India

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 19:47 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Can NRIs repatriate current income without an NRO account?

Yes, banks can allow repatriation based on a Chartered Accountant certificate confirming eligibility and tax payment.

What is the definition of a Person of Indian Origin (PIO) under this circular?

A PIO is a citizen of any country except Bangladesh or Pakistan, who held an Indian passport, or whose parents/grandparents were Indian citizens, or is a spouse of an Indian citizen or such person.

Does this circular apply to foreign nationals?

Yes, it covers remittance facilities for foreign nationals, including those on employment in India who become residents under FEMA.

📜 Read the original circular — full text as issued by RBI

RBI/2012-13/8
Master Circular No.8/2012-13
 (Updated as on October 12, 2012) 
 July 02, 2012
 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, 2013 and be replaced with an updated Master Circular on the subject.
 Yours faithfully,
 (Rudra Narayan Kar)
 Chief General Manager
 INDEX

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/8 · issued 12 Oct 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=7313&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.