In consonance with the Government's policy, the Finance
Minister has chosen to tread with caution the path towards capital account convertibility.
However, the steps announced by the Finance Minister are likely to give cause
for cheer to Non-Resident Indians (NRIs).
Deposit schemes for NRIS will now be fully convertible.
While the existing Foreign Currency Non-Resident (FCNR(B)) scheme and the
Non-Resident External rupee (NRE) scheme will continue to be repatriable,
those schemes which do not offer full convertibility to NRIs, will be discontinued
from 1-Apr-02. The existing balances in the non-resident (non-repatriable)
rupee accounts can be credited on maturity to the convertible NRE account.
Moreover, NRIs can now repatriate in foreign
currency their current earnings in India such as rent, dividend, pension,
interest and the like, subject to appropriate certification.
