Section 9 in The Foreign Exchange Management (Borrowing And Lending In Rupees) Regulations, 2000
9. Continuance of rupee loan/overdraft to resident who becomes a person resident outside India .-An authorised dealer or, as the case may be, an authorised bank, may allow continuance of loan/overdraft granted to a person resident in India who subsequently becomes a person resident outside India, subject to the following terms and conditions:-
(a)the authorised dealer or the authorised bank is satisfied, according to his/its commercial judgment, about the reasons to continue the loan or overdraft;(b)the period of loan or overdraft shall not exceed the period originally fixed at the time of granting the loan or overdraft;(c)so long as the borrower continues to remain a person resident outside India, the repayment shall be made either by inward remittance from outside India through normal banking channels or from the funds held in Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident Non-repatriable (NRNR)/Non-resident Ordinary (NRO)/Non-resident Special Rupee (NRSR) account of the borrower.
