RBI allows residents to pay housing loans of NRI relatives

Mumbai: The Reserve Bank has allowed resident individuals to repay housing loans in rupee on behalf of their close relatives, who are non-resident Indians (NRIs) or People of Indian origin (PIO).

"..It has been decided that where an authorised dealer (bank) in India has granted loan to a non-resident Indian..., such loans may also be repaid by resident close relative of the non-resident Indian by crediting the borrower's loan account through the bank account of such relative," the apex bank said in a notification.

However, this repayment facility is restricted to housing loan only, it noted.

In another circular, the central bank allowed resident individuals to pay for medical expenses of their non-resident close relatives, who are on visit to India.

Presently, a resident individual can pay bills of their NRI kins for boarding, lodging, travel to and from and within India.

Source: Financial Express