Master Direction - Remittance of Assets (Updated as on June 29, 2026)
UR
- Applies toBanks that handle foreign money
- StatusIn force
- ImportanceFOR INFORMATION
- IssuedJan 04, 2016
- Amendmentsnone tracked
- Length38 points in 2 sections · 4 min read
The four dates on this rule
- PublishedJan 04, 2016The day RBI put this document out.
- Starts to applyNot statedNot stated separately in this document. Read the rule itself before you assume a start date.
- Time to get readyNot statedCannot be worked out until the day it starts to apply is known.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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What it says
Must know
1. Written to every AD bank
RBI addresses this whole rulebook to AD Category-I banks and authorised banks.
2. What this rule covers
This rule covers sending money already held in India -- deposits, provident fund, insurance payouts -- out of the country.
3. Also covers shares and property
It also covers sale proceeds of shares, land or any other asset held in India.
4. USD 1 million a year
A foreign national's remittance cannot cross USD one million in a financial year.
5. Use one AD for instalments
If paid in parts, every instalment must go through the same AD bank.
6. Not for Nepal or Bhutan
These facilities do not apply to citizens of Nepal, Bhutan or a PIO.
7. NRI and PIO USD cap
NRIs and PIOs may remit up to USD one million every financial year.
8. Bank asks for an undertaking
The AD must get a signed undertaking that the money is the account holder's own legitimate earnings.
9. Auditor confirms liabilities are settled
An auditor must certify that all Indian liabilities are fully paid or provided for.
10. Winding up follows company law
The auditor must also certify the winding up follows the Companies Act, 1956.
11. No-court winding needs a certificate
For winding up outside a court, an auditor must certify no legal case is pending against the company.
12. Show RBI's original permission letter
The AD needs a copy of RBI's original permission to open that office.
13. No unrepatriated foreign income left
The auditor must confirm no foreign income, including exports, is still unrepatriated.
14. Office followed every RBI rule
The auditor must confirm the office met every RBI rule while it operated.
15. No pending legal proceedings either
The applicant must confirm no Court case or legal hurdle blocks the remittance.
16. Registrar of Companies must confirm
A Registrar of Companies report must confirm the office followed the Companies Act, 2013, on winding up.
17. Above one million needs approval
A remittance above USD 1,000,000 in a year needs RBI's prior approval.
18. Other asset sales need approval
Any other sale-proceeds remittance not already covered needs RBI's approval first.
19. Tax law still applies
Every remittance still must follow India's ordinary tax rules.
20. AD must ensure tax compliance
The AD bank must make sure tax law requirements are met before remitting.
Do it
1. Who counts as a PIO
A PIO is a foreign citizen with Indian family or citizenship roots, other than from Bangladesh or Pakistan.
2. Who is an Authorised Dealer
An Authorised Dealer is a person RBI has authorised under FEMA section 10(1).
3. Who counts as expatriate staff
Expatriate staff keep their retirement fund with an employer based outside India.
4. Who is not permanently resident
A person working in India for three years or less counts as not permanently resident.
5. Retired from an Indian job
An AD may act if the foreign national retired from employment in India.
6. Inherited under FEMA section 6(5)
An AD may also act if the person inherited assets under FEMA section 6(5).
7. Sale proceeds do not count
This USD one million cap does not include repatriable asset sale proceeds.
8. A foreign student's leftover balance
A foreign student who finished studies may remit money left in their bank account.
9. From NRO balances or inheritance
This can come from NRO account balances or assets inherited in India.
10. Assets from a parent's settlement
It also covers assets received under a settlement deed made by a parent or relative.
11. A settlement without life interest
A settlement made during the parent's lifetime, with no life interest kept back, counts as a gift instead.
12. Liquidation needs a court order
An AD may allow remittance for a company under liquidation on a Court or official liquidator's order.
13. PF transfers for expatriate staff
Indian companies may remit provident or pension fund contributions for their not-permanently-resident foreign staff.
14. Closing a branch or office
An AD may allow remittance when a branch or liaison office closes and winds up.
15. Hardship if remittance is refused
RBI may approve it if refusing would cause real hardship to that person.
16. RBI will not clarify tax
RBI will not issue guidance under FEMA on tax questions.
Background
1. Made under FEMA section 47
This rulebook comes from RBI's own regulation on remitting assets out of India.
2. RBI's own added powers
RBI also issues its own directions to Authorised Persons under a separate FEMA section.