Opening Bank Account Abroad for Indians
Opening Bank Account Abroad for Indians
The Reserve Bank of India as granted general permission to various categories of persons and entities to open, hold and maintain foreign currency accounts with a bank outside India. In this article, we look at some of the categories of persons and entities enjoying general permission to open bank account abroad.
Students
Students who have gone abroad for studies or who is on a visit to a foreign country are allowed to open a bank account abroad. However, on return of the person back to India, the balance in the account must be repatriated to India. Short visits to India by a person who has gone abroad for studies, before completion of studies will not be treated as return to India.
Trade Fair or Exhibition
Persons or business resident in India, who have gone abroad to participate in an exhibition or trade fair can open a bank account abroad to credit the sale proceeds of goods on display in the exhibition or trade fair. However, the balance in the account must be repatriated to India through normal banking channels within a period of one month from the date of closure of the exhibition or trade fair.
Export Contractors
Any Indian exporter who has undertaken a construction contract or a turnkey project outside India or who is exporting services or engineering goods from India on deferred payment terms with a bank outside India are allowed to open bank accounts. However, to open a bank account, the exporter must obtain approval as required under the FEMA regulations for undertaking contract/project/export of goods or services and the terms stipulated in the letter of approval must have been complied.
Shipping or Airline Companies
Shipping or airline companies incorporated in India are allowed to open bank accounts in foreign banks for the purpose of undertaking transactions in the ordinary course of business.
