Foreign Exchange Management (Remittance of Assets) Regulations, 2016

RBI has, by way of a notification dated April 1, 2016, issued the Foreign Exchange Management (Remittance of Assets) Regulations, 2016 (‘2016 Remittance Regulations’), which supersedes the erstwhile regulations. Some of the key changes introduced under the 2016 Remittance Regulations are as follows: (i) any non-resident Indian (‘NRI’) or person of Indian origin desirous of remitting any amounts from an NRO account is now required to submit an undertaking to the authorized dealer bank (‘AD’) confirming that the remittances are being made from the balance arising from legitimate receivables in India, and not by borrowing from any other person or a transfer from any other NRO account; and (ii) it is no longer required for Indian companies remitting assets when under liquidation to furnish a tax clearance certificate from the relevant tax authorities.