What is the purpose of a NRE account and what is its connection with FEMA inquiry involving Mahua Moitra
A NRE (Non-Residential External) account is a type of bank account opened by non-resident Indians (NRIs) to manage their foreign income. It is subject to FEMA (Foreign Exchange Management Act) regulations. There have been allegations of a FEMA inquiry involving Mahua Moitra, a politician, in connection with her NRE account. Explore the purpose and connection between NRE account and FEMA inquiry.
- A NRE account is a type of bank account opened by non-resident Indians (NRIs) to manage their foreign income.
- The purpose of a NRE account is to allow NRIs to deposit and hold their foreign income in India, which includes income earned abroad, income from investments made abroad, and income earned in India but converted into foreign currency.
- NRE accounts are maintained in Indian rupees, but the funds held in these accounts can be freely repatriated without any restrictions.
- These accounts can be used for various purposes, such as making investments in India, receiving remittances from abroad, or conducting day-to-day transactions.
- FEMA, which stands for Foreign Exchange Management Act, is a legislation in India that governs the management of foreign exchange transactions.
- Under FEMA regulations, non-residents are required to comply with certain guidelines while operating NRE accounts.
- There have been allegations of a FEMA inquiry involving Mahua Moitra, a politician, in connection with her NRE account.
- The specific details of the inquiry and its connection to Moitra's NRE account are not mentioned, but it suggests that she may be under investigation for possible violations of the FEMA regulations.
Answered
a year ago