THANK YOU very much for this information. Can you provide a reference under which Act or Regulation this is covered. I read about the interest-free aspect but it appears to be for relative only. The PIO holder lives most of the time in India but is a U.K. citizen. Can the Indian citizen residing in India, who is not related to the PIO holder, give interest-bearing loan in Crores to the U.K. citizen (PIO holder residing mostly in India)?