Banks are suspicious of NRIs using the LLP route to transfer money


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Many non-resident Indians (NRIs) who are sending money abroad are running into problems with the banks.

Large domestic banks where NRIs have non-resident ordinary (NRO) accounts have expressed concern about the use of limited liability partnership (LLP) vehicles by these individuals to repatriate funds from abroad. In NRO accounts, NRIs manage their deposits and receive dividends, rent payments, and interest earned in India.

Two senior tax professionals who are familiar with the development told ET that at least three major private sector banks have recently prohibited NRIs from transferring money they received as a profit share from LLPs where they were partners.

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