Insurance claims relaxed for NRIs

July , 2004

RBI has decided that foreign exchange received by a resident individual by way of proceeds of life insurance policy claims, maturity, surrender values settled in foreign currency from an insurance company in India permitted to undertake life insurance business by the IRDA may be credited to RFC account or RFC (domestic) account of the beneficiary as the case may be.

In terms of Regulations 5 and 5A of the FEMA notification, eligible entities in India may open, hold and maintain resident foreign currency (RFC) account and resident foreign currency (domestic) [RFC(D)] account with an authorised dealer out of foreign exchange received by them in respect of transactions specified therein.

The requisite amendments to the FEMA has already made by RBI, said a notification.