For the purpose of exchange control regulations, a citizen of India residing in a foreign country or a foreign citizen who has come to stay in India in either case:
(a) For or on taking up employment in India, or
(b) for carrying on a business or vocation in India, or
(c) for staying with his or her spouse, such spouse being a person resident in India, or
(d) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period, is considered a ‘person resident’ in India.
Indian citizens who proceed abroad for business tours, Medical treatment, higher studies and such other purposes which do not indicate their intention to stay outside India for an indefinite or uncertain period will be considered as ‘persons resident in India during their temporary absence from India. Accounts opened by banks in the names of persons resident in India are known as resident accounts.
Persons who are not residents in India are considered persons resident outside India or non-residents. The accounts opened in the names of non-residents are known as non-resident accounts.
Generally operations in resident accounts are free while non-resident accounts are subject to exchange control regulations.
