NRIs Transacting Money in India -What You Should Know About A New Rule

A Non-resident Indian (NRIs) transacting in cash above the amount of Rs. 50,000 has to be able to submit the original identification documents to the banks and financial institutions along with a copy of the same before it can go through. This has been made mandatory by the Department of Revenue at the Government of India with immediate effect under the Prevention of Money-laundering (Maintenance of Records) Rules.
According to this amendment, the obligation lies with the banks, financial institutions and intermediaries such as stock brokers to verify the identity of clients, maintain records and furnish information to the Financial Intelligence Unit of India (FIU-IND). This means that the reporting entity has to compare the copy of the officially valid identification document produced by the client with the original and record it on the copy. This is done with an eye on curbing money laundering and black money generation. Earlier, the income tax department had ruled all cash transactions above Rs.Two lakhs as illegal.

What Has Changed with the New Rule?

What You Will Need?

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