Section 10 in The Foreign Exchange Management (Borrowing And Lending In Rupees) Regulations, 2000
10. Continuance of rupee loan in the event of change in the residential status of the lender .-In case a rupee loan was granted by a person resident in India to another person resident in India and the lender subsequently becomes a non-resident, the repayment of the loan by the resident borrower should be made by credit to the Non-resident Ordinary (NRO) or Non-resident Special Rupee (NRSR) account of the lender maintained with a bank in India, at the option of the lender.
