Changes in Digi Gold NRE scheme

Changes in Digi Gold NRE scheme
 

Changes in transactions in the account


As per FEMA Guidelines, all repayments towards the loan (including by way of principal, interest, fees, charges etc.) shall be paid out of remittances from outside India; or out of funds in NRE/ FCNR(B)/ NRNR/ NRO/ NRSR account of the borrower; or out of rental income derived from renting out the property acquired by the borrower; or by any relative of the borrower in India, by crediting the borrower's loan account through account to account transfer. (The term “relative” shall have the same meaning ascribed to it under Section 2(77) of the Companies Act, 2013). The following transactions will not be permitted in the Digi Gold NRE loan accounts:

 

  1. Transfer credit to Digi Gold NRE account from NRE /NRO and SB accounts of the different customers will not be permitted unless the payee is the relative of Digi Gold NRE customer (The term “relative” shall have the same meaning ascribed to it under Section 2(77) of the Companies Act, 2013).
  2. Credit in form of cash shall not be permitted.
  3. Debit transactions from Digi gold NRI account to NRE account of (both same and different customer) shall not be permitted.

 

Changes with respect to the credit utilization

 
  1. The proceeds of the loan shall be utilized only for genuine lawful personal needs/purposes and shall not be utilized for the activities such as (a) agricultural/plantation/real-estate business (b) trade in transferable development rights (c) Carry on Nidhi or Chit company, (d) construction of farmhouses, (e) investment in capital market including margin trading and derivatives (f) any activity where foreign investment is not permissible as per law/regulatory guidelines even if loan is utilized in association with other person (provided that the restriction on real estate business shall not include development of townships, construction of residential / commercial premises, roads or bridges).
  2. The loan amount shall not be repatriated outside India or credited to NRE/FCNR(B)/NRNR accounts of the borrower.