Mode of Payment of FDI - Overview
FDI has been permitted by RBI in almost every field in India by way of automatic or approval route as prescribed by RBI.
But the remittances made in FDI must be completed by way of an appropriate route as prescribed by the RBI.
But the remittances made in FDI must be completed by way of an appropriate route as prescribed by the RBI.
Modes of payment of FDI
| Particulars |
Mode of Payment |
| Purchase/sale of Equity instruments by PROI |
The mode of payment of FDI can be by way of:
- inward remittance through banks
- payment using NRE/FCNR(B)/Escrow Account
Mode of Payment of sale proceeds can be done by way of:
- Outward remittance using banking channel or
- credit to NRE/FCNR(B) Account of the Person Concerned.
|
| Investment by FPI |
The mode of payment of FDI can be by way of:
- inward remittance through banks or
- payment using a Foreign Currency Account Account or Special Non-Resident Rupee (SNRR) account
Mode of Payment of sale proceeds of equity instruments or INVITs, REITs or domestic mutual fund can be done by way of:
- remittance using banking channel or
- credit to Foreign Currency Account or SNRR Account of the Person Concerned.
|
| Investment by NRI / OCI on repatriation basis |
The mode of payment of FDI can be by way of:
- inward remittance through banks or
- payment using NRE account.
Investment in Mutual and subscription to NPS shall be made using:
- inward remittance through banks
- payment using NRE/FCNR(B)/Escrow Account
Sale proceeds of equity instruments can be remitted by way of:
- Outward remittance or
- credit to NRE (PIS) Account of the Person Concerned.
Sale proceeds of Mutual fund units or NPS Subscription can be remitted by way of:
- Outward remittance or
- credit to NRE(PIS)/ FCNR(B)/NRO Account of the person Concerned.
|
| Investment by NRI / OCI on Non-Repatriation basis |
The mode of payment of FDI can be by way of:
- inward remittance through banks or
- payment using NRE/FCNR(B)/ NRO account.
Sale proceeds of equity instruments or LLP disinvestment can be remitted by way of :
|
Reporting of FDI in Form FCGPR
Where the remittance of equity instruments is received through appropriate route, then the reporting of FDI must be made in Form FCGPR
Consequences of delay in reporting of FDI in Form FCGPR
In case the company makes any delay in reporting of FDI in Form FCGPR, then the RBI will levy a late submission fees for delay as the RBI may think appropriate.
