Section 5(6) in The Foreign Exchange Management (Borrowing Or Lending In Foreign Exchange) Regulations, 2000
(6)[ An individual resident in India may borrow a sum not exceeding US $ 2,50,000 or its equivalent from his close relatives outside India, subject to the conditions that--(a)the minimum maturity period of the loan is one year;(b)the loan is free of interest; and(c)the amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR account of the non-resident lender.Explanation. - "Close relative" means relative as defined in section 6 of the Companies Act, 1956.] [ Inserted by G.S.R. 854(E), dated 1.11.2002 (w.e.f. 31.12.2002).]
