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Question ID : 36899

Loan from NRI Director

A Company is receiving loan from its Director who is a NRI. Loan is received from him in Indian Rupee from a bank account in India maintained by that Director. What are the RBI Regulation with regard to such transaction? Kindly clarify.

Posted by balasubramanian on Dec 20, 2018

Filed Under CORPORATE & OTHER LAWS

Answer ID : 76194

As per FEMA Regulations, Company is prohibited from acceptance of loan from NRI, whether in Indian currency or Foreign Currency.

Posted by Rupakula Rajasekhar on Jan 12, 2019
Answer ID : 76409

If the loan is received on a non repatriable basis, RBI regulation on ECB will not apply

Posted by Shawn Jeff Christopher on Mar 24, 2019