A Study on Forex Laws and Banking Facilities available for Non-Residential Indians and Persons of Indian Origin

The foreign Exchange Regulation Act (FERA) enacted in the year of 1973 managed the cash inflow and outflow beyond the borders of the country. Due to the poor economic conditions in the early post independence period, the FERA was stringent so that the cash outflow beyond the borders of India was regulated strictly to protect the economy. But at the wake of the economic reforms in the early 21st century needed a more flexible and lenient regulation in the area of Foreign exchange to enable easy credit inflow and outflow for business and other financial transaction purposes. The FERA was replaced by the Foreign Exchange Management Act (FEMA) in 1999. The FEMA rules does not allow a Non residential Indian or a Person of Indian origin to hold a savings bank account but has other facilities like a Non - Residential Indian Ordinary Rupee Account, Non - Residential Indian External Rupee Account, Foreign Currency Non - Resident Account. The aim of the paper is to know about the legislations regarding the Non Residential Indian Banking. The problem is to find the facilities available for the NRI in the area of banking that would benefit the NRI and the Indian Foreign Exchange. The researcher uses a descriptive method. The author has analysed the paper through the doctrinal research methodology. Secondary data including research papers, journals, case laws, books and online articles have been referred. The paper concludes that the NRI banking facilities are favourable for the NRI.