General permission has been granted to Indian proprietorship concern’ firm or a company (including Non-Banking Finance Company) registered with Reserve Bank to accept deposits from NRIs on non- repatriation basis subject to the terms and conditions specified in Schedule 7. The terms and conditions are similar to those stipulated in paragraph 10C.10(i) of ECM and erstwhile Notification No.FERA 196/99-RB dated 30th March, 1999.
Various other Rules and Regulations, for example, regarding acceptance of deposits from NRIs by issue of a commercial paper, etc. have been given in Regulation No.8 and Regulation No.9. It has also been made clear that any deposit between a person resident in India and a person outside India which is not covered by the provisions of FEMA or the aforesaid Regulations would require approval of the Reserve Bank.