India becomes No.1 in recieving NRI deposits

India has become the largest remittances receiving country at USD 72 billion this year followed by China at USD 64 billion, as per a World Bank report.

The US emerged as the largest remittance source country with an estimated USD 56 billion in outward flows in 2014.

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Don’t sell your Indian immovable properties fearing FATCA

There are disconcerting reports about the US based Non-resident Indians (NRIs) selling their immovable properties in India in panic.

Don't rush, it's all good/ Reuters

Some are selling to their relatives in the sobering belief that the discount on account of distress sale would at least go to their kindred souls. The panic stems from Foreign Accounts Tax Compliance Act (FATCA) of the US pursuant to which India, as indeed other countries, is committed to furnishing all the information about Indian properties and Indian income of residents of the US.

There is however no need for panic because FATCA hasn’t altered the Indo-US Double Taxation Avoidance Agreement (DTAA). 

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Advantages of the policy change and the ‘fine print’

According to a July 2014 report by the Migration Policy Institute, 2.6 million Indian immigrants live in the US, making it the third largest immigrant population in that country. The report added that remittances from migrants form a relatively small part of the GDP of India (about 3.7%) but constitute the world’s largest inflow in absolute terms with inward remittances of around $67 billion (in 2013 alone).

In its diaspora, India has assets which can contribute immensely to economic growth. However, till some time ago, the regulatory framework was not the most conducive. For example, if an NRI was to invest through his company based in the US, such investment would be considered as foreign investment, and would need to comply with restrictions imposed under exchange control laws.

But the NDA seems to have done its bit in shaking up the regime. The two questions that emerge are, what are the advantages of the policy change and what is the ‘fine print’?

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Dos and don’ts for NRIs who apply for home loans

Buying a home 'back in India' is every NRI's dream. Thankfully, it can be fulfilled due to availability of easy home loan facilities, relaxed rules by the RBI and online transacting options.
So if you've shortlisted a property and want to approach a bank, it will be a good idea to ensure that you meet certain criteria.
Check out the criteria here

NRIs can invest in pension scheme

To widen the ambit of investors in the National Pension Scheme (NPS) and also to provide social security, the Reserve Bank of India (RBI) said that Non-Resident Indians (NRIs) can contribute to the popular NPS.

The subscription amounts can be paid by the NRIs through normal banking channels or from their funds held in NRE/FCNR/NRO accounts.

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NRIs can soon vote through E-Vote

The move to allow e-voting by NRIs got a major push with the Indian government submitting before the Supreme Court that the union cabinet would soon consider a draft bill in this regard before it is tabled in the parliament.

The government is also planning to extend the facility to armed forces personnel and defence personnel and their family serving away from their native place, including abroad.

A bench  headed by Chief Justice H L Dattu  then directed the government to enable e-voting by NRIs within three months after making necessary amendments to Representation of Peoples Act 1951 which deals with elections in the country.

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Kerala sets up NRI commission

In a good move for the millions of Keralisties residing outside India, the government has set up a NRI Commission. The only other state witha similar body is Punjab.
This is a welcome move in a state like Kerala as NRIs form the backbone of the state economy.
A four-member NRI Commission with quasi-judicial powers is to be set up in Kerala to protect the rights, interests, and properties of Non-Resident Indians (NRIs) hailing from Kerala. 
A retired judge of the High Court will head the Commission, which will be headquartered in Thiruvananthapuram. A retired IAS officer and two NRIs will be the other members. The secretary of the commission will be in the rank of the joint secretary. 
The commission will hold sitting once in every three months. Briefing mediapersons after the weekly Cabinet here on Wednesday, Chief Minister Oommen Chandy said the commission would also have powers to protect the deposits of NRIs, liaison with the State and Union governments to protect the interests of NRIs and check illegal recruitments. The commission will be able to make inquiry on the suo moto cases or on the request being made by the government.