I'm an NRI and living in the US. I've been investing in mutual funds in India and also have a home loan account running. What are the implications of FATCA on my investments and home loan? Are there any requirements in order to continue investing in India?
-Sudheer Varma Dandu
FATCA is a US federal law which enforces the requirement for US residents to file yearly reports of their non-US based financial accounts. It also requires all non-US financial institutions to search their records and report the assets and identities of such persons to the US Department of Treasury.
To avoid any hassles it is advisable to follow the FATCA guidelines and update your existing investments as per the given regulations. As an NRI, you can continue your SIPs and investments provided you comply with the following:
1. Inform the asset management companies about your NRI status (if not done already), update your address through a 'Know Your Customer' (KYC) change form
2. Link your NRE/NRO account to your SIPs as you cannot continue with a domestic savings account based in India.
Your existing home loan can continue from the NRO account. It is also possible to make the repayment of your home loan from the NRE account, though it is not mandatory.
This article was originally published on December 15, 2016.
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