The recent issuance of new norms in the Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) is creating more woes for NRI investors.
Earlier NRI Bank Statement was accepted as proof of foreign address for KYC. However, NRIs are subjected to submit their utility bill like electricity bills or landline phones as proof of foreign address, based on the new norms. These recent changes failed to bring any relief to NRI investors, but rather creating difficulty in investing in Indian mutual funds and shares.
These are the major pain points NRIs have in complying with the new requirement:
1.Most of the NRIs live in bachelor/ labour accommodation and hence they do not have any utility bill or telephone bill in their name.
- Many NRI’s do not own landline phone connections
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Most of the low-income NRIs resort to prepaid mobile phone connections which do not produce a bill.
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Postpaid connections produce a bill, however, it is not acceptable as Utility proof.
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NRI may have employer-sponsored accommodation, hence utility bills are in the sponsor’s name.
6.In some places, utility bills are written in Arabic. -
Spouse may not be able to provide utility bills if the accommodation is not in her/his name.
8.Investment made by parents for their children also have constraints in providing utility bills in their name on attaining majority, while earlier father’s NRE bank account statement was accepted.
K V Shamsudheen of Pravasi Bandhu Welfare Trust believes new norms should be more flexible so that NRI can continue to invest and participate in India’s economic growth.
Pravasi Bandhu Welfare Trust, an NGO that caters to NRI related issues, has sent a letter to India’s Finance Minister, Nirmala Sitharaman, requesting to take up the issue and find a solution to the woes of NRI.
