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Can loans/ overdrafts be given to the deposit holders themselves against the collateral/ security of NRI deposits in India?

April 26, 2017collateral deposit deposits given HOLDERS India Loans NRI overdrafts security

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Can loans/ overdrafts be given to the deposit holders themselves against the collateral/ security of NRI deposits in India?

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Yes. Loans/ overdrafts can be given to the account holders against the collateral/ security of all types of Non Resident deposits. The regulations relating to loans/ overdrafts are different for different NRI accounts. Loans/ overdrafts cannot be given for carrying on agricultural / plantation activities or for investment in the real estate business.