Advances against NRE/FCNR(B) and NRO deposits can be granted for any purpose except the following.
i)In the business of chit fund, or
(ii) As nidhi company , or
(iii) Agricultural or plantation activities or real estate business; or construction of farm houses or
(iv) Trading in transferable development rights (tdrs).
For the purpose of sub-clause (iii) of clause (1), real estate business shall not include development of townships, construction of residential/ commercial premises, roads or bridges.
In the case of Loans against NRO Deposits, all the rules pertaining to Domestic Deposit apply except the above restriction on purpose of the Loan.
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