Section 9   [ View Judgements ]

Continuance of rupee loan/Overdraft to resident who becomes a person resident outside India

An authorised dealer or, as the case may be, an authorised bank, may allow continuance of loan/overdraft granted to a person resident in India who subsequently becomes a person resident outside India, subject to following terms and conditions: (a) the authorised dealer or the authorised bank is satisfied, according to his/its commercial judgement, about the reasons to continue the loan or overdraft;

(b) the period of loan or overdraft shall not exceed the period originally fixed at the time of granting the loan or overdraft;

(c) so long as the borrower continues to remain a person resident outside India, the repayment shall be made either by inward remittance from outside India through normal banking channels or from the funds held in Non-resident External (NRE)/Foreign Currency Non-resident(FCNR)/Non-resident Non-repatriable (NRNR)/Non-resident Ordinary (NRO)/ Non-resident Special Rupee (NRSR) account of the borrower.

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