Browsing: NRI Remittance

Community
NRI deposits drop 98% as oil prices remain low: Report

Net deposits by Non-Resident Indians (NRIs) dropped sharply by 98 percent in April-August this fiscal due to fluctuation in oil prices, industry body ASSOCHAM said. Net bank deposits — the difference between total deposits and not withdrawals — came in at USD 434 million in April-August this year, compared to a net deposit of USD 3.8 billion in the same period last year. Gulf crisis hits remittances “While there are various factors responsible for the NRI flows, including the interest rates, but the most plausible at this point of time seems to be economic problems in the Gulf countries, the largest source of NRI remittances, particularly for the low income expatriates,” the statement said. “Remittances have been affected for states like Kerala, Uttar Pradesh and Bihar, in particularly which have a large number of its people making living in the Gulf nations.” “With fading away of the glorious years for…

NRI Guides
Why and how you should convert Savings Account to NRO Account

When a person becomes a Non Resident Indian (NRI), he is required to either close his existing savings account, or convert it to a Non­ Resident (Ordinary) or NRO account. Most individuals make a mistake of continuing a resident savings account even after becoming a NRI but the law does not allow it. As per FEMA regulation, when a resident’s status changes to NRI the resident savings account have to be converted to a NRO account. Or in simple words it’s illegal to hold savings bank account for NRIs. It is not possible to convert a resident savings account to NRE account as the fund source for NRE account has to be remitted from abroad. NRO accounts can be opened with funds either remitted from abroad or generated in India. Features of NRO account These are just like a savings accounts, with certain restrictions on repatriation of proceeds to the…

UAE
Expat remittances from UAE hit $10billion in Q1 2017

Money outflows from the UAE remain on a positive growth track with total remittances hitting AED 37.1 billion in the Q1 2017, a growth of 1.1 percent from the same period last year, UAE Central Bank stated on Sunday. Indian expats top the list sending a total cash of AED 12.95 billion, accounting for 34.9 percent of total remittances, followed by Pakistani nationals accounting for 9.4 percent, then Filipinos at 7.3 percent during the first three months of the year. Americans account for 5.4 percent, followed by Egyptians at 4.95 percent and Britons at 4.4 percent. Up to 75 percent of total remittances, amounting to AED 27.8 billion, were conducted through money exchange companies during the first quarter of the year, a growth of 2.7 percent from the same period last year, while 25 percent thereof was done through banks. The Central Bank attributed the hike in remittances to 2.2…

Community
Several NRIs asked to reveal their source of funds

A number of Non­ Resident Indians (NRIs) have been asked to provide source of income for the money parked and transferred in their NRE bank accounts. India’s Enforcement Directorate (ED), which probes irregular foreign currency transactions and money laundering, has sent notices to several NRIs for parking funds in NRE (Non Resident External) bank accounts and buying properties. Over the past two months, many of them have been asked to meet officials of ED and explain their source of fund, a report on Economic Times said. Genuine or tax evasion? What is of concern to the Enforcement Directorate is whether the source of income is genuine or is it a tax evasion technique adopted by resident businessmen or politicians. While most fund transfers are genuine, there are instances where money moved in a circuitous route to evade tax. Are NRIs responsible to answer? Even though NRIs do not have to pay tax for their earnings or funds…

Community
Slide in oil prices : NRI remittances fall 87% in April

Remittances by non-resident Indians (NRIs) fell 87 per cent in April due to a slide in oil prices, data released by the Reserve Bank of India (RBI) showed. Total NRI deposits fell to $302 million in April this year. The deposits stood at $2,406 million in the year-ago period, according to the data. The biggest fall was registered in the Non-Resident (External) Rupee Account (NR(E)RA) category, which saw inflows decreasing to $203 million in April. It was $2,200 million in the year-ago period. Introduced in 1970, NR(E)RA is a rupee account and the NRIs can remit money to India from their funds abroad. For 2015-16, NRI deposits had recorded a growth of 13.5 per cent to $15,977 million, The Hindu has reported. “Sixty per cent of the India’s remittances come from Gulf countries, which suffered the most due to decline in crude oil prices. So funds from NRIs staying in…

Kuwait
Expatriates in Kuwait should pay up to 5% remittance tax, says MP

Expatriates should pay a tax of up to five per cent on remittances from Kuwait, a lawmaker has said. MP Faysal Al Kandari said that the tax would make a new source of revenue for the state as it is dealing with the financial consequences of the downfall in the price of oil, Gulf News has reported citing Kuwaiti daily Al Rai. Under the proposal, expatriates will pay two per cent on any remittance of less than KD100. However, the tax goes up to four per cent on remittances between KD100 and KD499, and to five per cent on remittances that exceed KD500. Mode of collection All money orders and cheques must be sent by the accredited banks and money exchanges to the finance ministry for scrutiny and control. The tax money could be collected through fiscal stamps to be issued by the finance ministry, he said. Punishment for violators Those who…

Community
Kerala sets up commission to address NRI issues

Indian expats from Kerala now have a new body to address their grievances and fight for justice, back home without being physically present over there all the time. The commission with semi-judicial powers was constituted by the Cabinet as per the NRI (Keralites) Commission Act, 2015 passed by the state assembly during its winter session. According to the Act, the commission will consist of a retired high court judge as its chairman, a retired Indian Administrative Service officer, two representatives of the Kerala diaspora and a state government official of the rank of a joint secretary. Members of the commission Under the plan, a team of four members directed by a former judge of Indian High Court Justice P Bhavadas was declared as the Commission. Justice Bhavadasan will take charge after his retirement from the judicial service on March 31. The two members of the current team are active NRI’s living…

Community
Oil price crash to hit NRI remittances from Gulf

The crash in crude oil prices and its crippling impact on economies of the Gulf nations can deal a severe blow to remittances to India, says industry body Assocham. Maximum impact to be on Kerala An analysis by Assocham observed that the maximum impact could be felt in Kerala where almost every other family is dependent on remittances, mostly coming from the Gulf nations. States like Punjab, Uttar Pradesh which also send a sizeable number of workforce there would also be affected. Of about 20 million NRIs spread in 110 countries, around six-seven million are in the Gulf states of whom two million are estimated to be from Kerala,  a report by PTI says. Gulf economies under pressure “As meltdown in crude is leading to a price war among the major oil producers and prices breaching 11-year lows, major economies in the Gulf region have been caught off guard and their…

NRI Guides
Understanding NRI Bank Accounts

Most individuals make a mistake of continuing a resident savings account even after becoming a NRI but the law does not allow it. Or in simple words it’s illegal to hold savings bank account for NRIs. As per FEMA regulation, when a status changes to NRI the resident savings account have to be converted to a Non-Resident account. Types of NRI bank accounts An NRI can choose from two options : an NRE or an NRO account. It would be advantageous to know how these two types of accounts differ and which one is right for you. What is an NRE account? A Non-Resident External (NRE) account is a bank account that is opened by depositing ‘External’ (foreign) currency at the time of opening a bank account. In an NRE account, you can keep your funds in rupee denomination. With this account, the principal and interest earned are fully repatriated. Simply…