Table of Contents
What are the benefits of being an NRI?
Repatriation Advantages: Another important advantage of NRI Accounts is repatriation benefits. Both NRO and NRE Saving Accounts allow smooth movement of funds because you can repatriate both, the principal and interest abroad. Funds in NRE Accounts are fully and freely repatriable.
How are remittances by NRIs helpful in tackling BOP deficit?
Ans: Remittances by NRIs are reflected as receipts of foreign exchange in the capital account. If these receipts shoot up, then the BOP deficit (excess of payment of foreign exchange over and above the receipts of foreign exchange) is reduced. Thus, remittances by NRIs are helpful in tackling BOP deficit.
Is improvement in exchange rate of the country currency always beneficial for BOP?
Answer: Improvement in exchange rate of the country’s currency does not necessarily mean improvement in BOP status of the country. Improvement in country’s exchange rate may in fact cause deficit BOP equilibrium, because exports may decrease and imports may increase.
What will be the effect of the following on the balance of payments of India A make in India Programme B import of pulses?
(i) ‘Make in India’ will increases supply (inflow) of foreign exchange in India, causing improvement in the balance of payments position. (ii) Import of pulses will lead to outflow of foreign exchange from the country, causing adverse effect on balance of payment position.
Is there a limit on sending money from US to India?
There is no limit on sending money from USA to India, provided you pay the required taxes. But, there is a limit of US $14,000 per person per year for gift tax free transactions. Any amount sent above US $14,000 per person per year, the sender is responsible for paying the gift taxes.
What is the role of NRIs in the Indian economy?
NRIs have had an important role to play in the development of the country. Every year, thousands of Indians migrate to other countries in search of better prospects for themselves and their loved ones back home. NRI money transfers to India are channelized towards better education, healthcare, investments, savings, and more.
What are the benefits of an NRI money transfer to India?
NRI money transfers to India are channelized towards better education, healthcare, investments, savings, and more. Often NRIs are seen supporting charities and have been instrumental in providing financial assistance in times of natural disasters like the recent floods.
Why do NRIs want to raise their kids in India?
The rapid economic growth in India offers ample opportunities for highly skilled workers and white-collar jobs. Many NRIs want to raise their kids in India due to the cultural differences abroad. Your kids will be attuned to your culture if you raise them in India.
Can NRIs invest in mutual funds in India?
Mutual funds are a bit riskier than fixed deposits, but that is why the returns of mutual funds are more than that of fixed deposit accounts. An NRI needs an NRE, NRO, or FCNR account in India to be able to invest in an Indian mutual fund. These accounts help to facilitate the investment and payout process.