Daassociates

 India has a large Non-Resident Indian (NRI) community that continues to maintain strong financial ties with family and friends back home. One common form of financial support is loans between NRIs and residents in India. While these transactions can provide much-needed assistance, they are subject to specific rules under the Foreign Exchange Management Act (FEMA) and guidelines laid down by the Reserve Bank of India (RBI) . In this blog, we will explain the legal aspects, conditions, and tax implications of loans between NRIs and residents. Why NRIs and Residents Enter into Loan Transactions There are several practical reasons for  Loans between nri and residents in india  transactions: Family support : Many NRIs provide loans to their family members in India for education, marriage, or medical expenses. Business funding : Residents may require funds from NRI relatives to invest in a business or property. Personal needs : Sometimes, NRIs also borrow from re...