NRI Current Affairs - 2020

Union Cabinet gives nod to Composite Foreign Investment Cap

Union Cabinet has given nod to introduce composite foreign investment cap in a bid to streamline the Foreign Direct Investment (FDI) structure.

Decision in this regard was taken during Union Cabinet meeting chaired by Prime Minister Narendra  Modi in New Delhi.

This move will help government to club all forms of overseas investments such as FDI, Non-resident Indians (NRIs), foreign institutional investors (FIIs) and other foreign investments to define sectoral limits as a composite cap.

Present policy has different caps for separate investment categories like FDI, FII and NRIs. The proposed sectors for composite foreign investment cap are agriculture, mining, tea, broadcasting, airports, media, retail (single brand and multi-brand), asset reconstruction companies, e-commerce, banking, insurance and commodity exchanges.

Thus it will simplify the FDI policy with a view to attract foreign investments and also improving ease of doing business in India.

Apart from this decision, Cabinet Committee on Economic Affairs (CCEA) also gave its approval for development of 6 lanning of Eastern peripheral expressway in Uttar Pradesh and Haryana.

The cost is estimated for this project is to be 7,558 crore rupees including 1,759 crore rupees for land acquisition, rehabilitation and resettlement activities.

The main objective of this project is to expedite the movement of infrastructure in the states of Uttar Pradesh and Haryana. Its development will also help in uplifting the socio-economic condition of the concerned regions of the state.

RBI allows NRIs to subscribe chit funds

Reserve Bank of Indian has allowed non-resident Indians (NRIs) to invest in chit fund to encourage flow of capital into the country.

Decision in this regard was taken after RBI had revised the extant guidelines for subscription to the chit funds in consultation with the government.

Henceforth, NRIs on non-repatriation basis will be allowed to invest in chit fund without any ceiling. However, the subscription to the chit funds by NRIs will be mandatorily brought in through normal banking channel, including through an account maintained with a bank in India.

The state government may permit any chit fund to accept subscription from NRIs on non-repatriation basis. It will be permitted by the registrar of chits or an officer authorized by the state government in accordance with the provisions of the Chit Fund Act, 1982.

Earlier in May 2000, RBI had barred NRIs from investing in a company or firms engaged in the business of chit fund.

Apart from this decision, RBI also extended the scheme allowing airline companies to raise external commercial borrowings (ECB) for working capital as a permissible end-use under the approval route.  Now, the ECB scheme will continue till March 31, 2016.