Mumbai, Sept 23: Reserve Bank of India has extended salary remittance facility to Indian nationals employed by a foreign company on deputation to India subject to certain conditions. The Indian nationals can open, hold and maintain a foreign currency account with a bank outside India and receive the salary payable to him for services rendered to the subsidiary or joint venture in India of that foreign entity, RBI said in a notification here today.

The salary to be credited, should not exceed 75 per cent of the total and the balance should be paid in Indian rupees, it said adding, the salary would also be subject to all applicable taxes on the entire salary. This facility was currently available to foreign nationals employed by a foreign company and on deputation in India.

In another notification, the apex bank has allowed diplomatic missions, diplomatic personnel and non-diplomatic staff of foreign embassies, who are nationals of concerned foreign countries and hold official passport, to maintain foreign currency deposit accounts. These directions have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999, it added.

Bureau Report