Under the Foreign Exchange Management Act (FEMA) regulations, Non-Resident Indians (NRIs) are allowed to repatriate funds from India, but there are specific rules and limitations they must follow.

The Reserve Bank of India (RBI) has established the $1 million scheme, which allows NRIs, Persons of Indian Origin (PIOs), Overseas Citizens of India (OCIs) and Foreign Nationals to repatriate up to USD 1 million per financial year from their Non-Resident Ordinary (NRO) accounts. This amount includes the sale proceeds of assets such as immovable property, securities and other assets held in India​.

Key provisions under the FEMA regulations for NRI repatriation include:

• NRO Accounts: Funds in NRO accounts can be repatriated up to USD 1 million per financial year after paying applicable taxes. This limit applies to the principal amount, excluding interest earned, which can also be repatriated subject to tax payments​​.
• Repatriation of Sale Proceeds: NRIs can repatriate the sale proceeds of up to two residential properties per financial year, provided the properties have been held for at least ten years​.
• Tax Compliance: All taxes due on the repatriated amount must be paid before the funds can be transferred abroad. Forms 15CA and 15CB, which certify the payment of taxes, are required for the repatriation process​​.
• Documentation: NRIs need to provide documentary proof of the source of funds, tax payments,= and a FEMA declaration to the authorized dealer bank handling the repatriation. This ensures compliance with the regulations and facilitates the smooth transfer of funds.