Can a resident, borrow from his Non-residents relatives in foreign exchange?
A. An individual resident can borrow an amount not exceeding US $ 2,50,000 or its equivalent in foreign exchange from his close relatives, resident outside India subject to the following conditions: The loan should be free of interest and the minimum maturity period of the loan is seven years. The loan should be utilized for the borrowers personal purposes or for carrying on his normal business activity but not for carrying on agricultural/plantation activities or purchase of immovable property or shares/debentures/bonds issued by companies in India or for re-lending.
