Mumbai: The Reserve Bank allowed non-resident Indians (NRIs) to invest in chit funds on non-repatriation basis without any ceiling, a move that will encourage flow of capital into the country. However, the subscription to the chit funds should be brought in through normal banking channel, including through an account maintained with a bank in India.
Earlier in May 2000, non-residents were barred from investing in a company or firms engaged in the business of chit fund. Revising the extant guidelines for subscription to the chit funds, RBI said: "It has been decided to permit NRIs to subscribe to the chit funds, without limit, on non-repatriation".
It further said the Registrar of Chits or an officer authorised by the State Government may permit any chit fund to accept subscription from NRIs on non-repatriation basis. RBI said the revision in the guidelines were made in consultation with the government.
