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NRIs, who return to India after 18th April,. 1992 after having been "a person resident outside India" for a continuous period of at least one year, have been granted the following general permissions on their return to India: (1) To maintain and operate, their foreign currency accounts with banks abroad. Funds held in these accounts can be used by resident account holders for making any payments to persons resident outside India. There will be no restrictions on utilisation of the balances in these accounts for any bona fide payments in foreign currency. The funds can also be utilised for making further investments in shares/ securities or immovable properties etc. abroad provided the cost of such investment and/or any subsequent payments required therefore are met exclusively out of foreign currency held in these accounts. (2) To hold, transfer or dispose of their other foreign currency assets like shares, securities, life insurance policies, and immovable properties, abroad . In case of the NRI who wants to retain his link abroad through business, vocation or employment, then his investments or interest in business abroad can continue as usual even after his return to India. (3) To enjoy absolute freedom for utilisation of their foreign currency assets, including freedom to gift or settle their foreign currency assets to anybody, anywhere. (4) To earn and retain abroad pension and retirement benefits, after return to India. (5) To earn, hold or dispose off or invest, in any manner they deem fit, incomes on their foreign currency assets. (6) To make any payments to or make any further investments abroad, provided that the payments and the cost of such fresh investments and any subsequent payments required thereof, are met exclusively out of the foreign currency assets. However, to earn the above facilities, it is necessary that foreign currency assets should have been acquired by the returning NRI lawfully without any contravention of FERA when he was living abroad and carrying on employment, business or vacation outside India. This proviso prevents hawala dealers from taking advantage of this liberalisation.

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