India’s 180-day overseas funds rule: How it can affect UAE-based NRIs
Dubai: Offshore banks are reportedly refusing to issue or renew international credit cards for some wealthy resident Indians because of concerns over India’s rules on money held abroad. The development has raised a key question for UAE-based Non-Resident Indians: could their salaries and savings in the Emirates face the same restriction? Get updated faster and for FREE: Download the Gulf News app…
Dubai: Banks in major financial hubs are reportedly questioning their ties with some Indian banks due to India's 180-day overseas funds rule. This new regulation necessitates that resident Indian individuals must utilize overseas remitted funds within 180 days or bring unused funds back to India. The restriction does not apply to UAE-based Non-Resident Indians (NRIs) as they are not considered "persons resident in India" under the Foreign Exchange Management Act (FEMA).
Hence, their salary, business income and savings kept in UAE bank accounts remain untouched. However, the issue raises concern for UAE-based NRIs who earn salaries in India, as they may face the same restriction in the future if such rules are extended.
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