What are the FEMA guidelines for NRIs maintaining foreign bank accounts?

Under FEMA regulations, NRIs must follow these guidelines for foreign accounts:

• Report all foreign bank accounts in Schedule FA of ITR
• Disclose peak balance during the year
• Report interest earned from foreign accounts
• Declare any signing authority or financial interest in foreign accounts

Important: Failure to report can result in penalties under Black Money Act. For 2024-25, accounts with aggregate balance exceeding ₹5 lakhs must be mandatorily reported. Note: FEMA allows NRIs to freely maintain and operate foreign currency accounts without monetary limits.