What is the Regulation of FEMA?

AR Posted by: Aditya Rastogi
• 02 October, 2025
3 Reply

Here are the FEMA rules for the NRIs

  • If you changed your resident status to the NRI, then you will need an NRO or NRE savings account as per the Reserve Bank of India (RBI). An NRO is a rupee account that can be opened by two or more NRIs and processes the remittances received from outside Indian via normal banking channels or any other country's given that the account holder during their visit to India or transfer of the credits to NRO bank accounts. 
  • An NRE is an external account that is used for money transfer from outside India, and the whole amount is repatriable back to the residing country of the NRI. 
  • The income earned from the account is exempt from taxation. 
  • NRIs are allowed for unlimited investments through repatriable and non-repatriable transactions. However, according to the FEMA rules, NRIs cannot do small savings ot invest in government schemes like the PPF. 

Tags : Regulation of Fema

  • Rajbeer Kumar 04 October, 2025

    NRIs can repatriate funds up to 1 million USD in a financial year, and it is allowed even if you are retired from employment or have inherited the property. According to the FEMA rules sale of the proceeds of such assets is non-repatriable outside India, and they can repatriate assets, like rents earned from the immovable property owned overseas.

    • LJ
      lucky jain 04 October, 2025

      The students who are in foreign countries and treated as NRIs are eligible for all the facilities under the FEMA rules. They can receive remittances up to 10 lakh USD in a year from their NRO and NRE accounts.

  • Varun Naidu 03 October, 2025

    NRIs can buy residential and commercial properties in India and receive immovable property gifts from their inheritance or relatives. However, they are not allowed to buy any plantation or agricultural lands in India.

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