Case Brief
What Happened
The Reserve Bank of India revised its instructions to disallow entities other than authorised dealers or authorised banks from accepting deposits from Non-Resident Indians (NRIs) through fresh remittances from overseas. These entities are also not permitted to accept deposits from NRIs by debit to their NRE/FCNR(B) accounts. The circular clarifies that existing deposits may continue to be held and renewed, and that the interest on such deposits remains repatriable. The revised instructions take effect immediately.