1. Attention of banks authorised to deal in foreign exchange is invited to Regulation 4(3) of the Notification No. FEMA 13/2000-RB dated May 3, 2000, as amended from time to time and A.P. (DIR Series) Circular No.67 dated January 13, 2003, in terms of which a NRI/PIO is permitted to remit an amount not exceeding USD one million, per calendar year, out of balances held in NRO accounts/sale proceeds of assets/the assets in India acquired by him by way of inheritance/legacy, on production of certain documents.



2. On a review, it has been decided to extend the facility available under legacy / inheritance to an arrangement under a "settlement" whereby the property is passed on to the legatees, during the lifetime of the owner/parent who normally retains a life interest in the property. It is clarified that the settlement is also a mode of inheritance from the parent, the only difference being that the property under the settlement passes to the beneficiary on the death of the owner/parent without any legal procedures/hassles and helps in avoiding delay and inconvenience in applying for probate, etc



3. Accordingly, banks authorized to deal in foreign exchange may allow remittance facility to a NRI/PIO under a deed of settlement made either by his parents or close relative (as defined in Section 6 of the Companies Act, 1956). The remittance facility would be available only on demise of the settler.

Sd/-
F.R. Joseph
Chief General Manager