{"id":2271,"date":"2026-09-23T15:00:00","date_gmt":"2026-09-23T09:30:00","guid":{"rendered":"https:\/\/blog.remitcircle.com\/?p=2271"},"modified":"2026-09-16T11:58:07","modified_gmt":"2026-09-16T06:28:07","slug":"p0011-repayment-of-loans-extended-to-non-residents-short-term","status":"publish","type":"post","link":"https:\/\/blog.remitcircle.com\/purpose-codes\/p0011-repayment-of-loans-extended-to-non-residents-short-term\/","title":{"rendered":"P0011 : Repayment of loans extended to Non-Residents (Short term)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2271\" class=\"elementor elementor-2271\">\n\t\t\t\t<div class=\"elementor-element elementor-element-56eaafb8 e-flex e-con-boxed e-con e-parent\" data-id=\"56eaafb8\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-768e76b4 elementor-widget elementor-widget-text-editor\" data-id=\"768e76b4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><b>What is Purpose Code P0011?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">P0011 is used when an Indian lender &#8211; a bank, NBFC, or corporate &#8211; receives repayment of a short-term loan it had previously extended to a non-resident borrower. Short-term loans are generally defined as those with an original maturity of up to one year. When the non-resident repays the principal (and potentially the final interest instalment), the inward remittance back to India is tagged P0011.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the inward-side counterpart to the outward loan extension (classified under S0011 on the outward side). P0011 tells the RBI that Indian-originated credit is being returned, not that new foreign capital is coming in. It sits in the Capital Account group because it is a financial claim being liquidated.<\/span><\/p>\n<p><a href=\"\/category\/purpose-codes\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"page\" data-id=\"351\">See all RBI purpose codes<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:heading {\"className\":\"u005cu005cu005cu0022wp-block-headingu005cu005cu005cu0022\"} --><\/p>\n<h2><b>When to Use P0011<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Use P0011 when you are an Indian entity receiving principal repayment from a non-resident on a short-term loan you extended. Common scenarios:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">An Indian bank receiving repayment of a short-term trade finance loan or working capital facility extended to an overseas entity<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An Indian NBFC collecting principal repayment on a short-term cross-border loan (maturity up to 1 year)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An Indian corporate receiving repayment of an inter-company short-term loan extended to its foreign subsidiary or associate<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An Indian entity receiving bullet repayment at maturity of a short-term overseas loan<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Repayment of short-term loans extended to NRI or PIO borrowers outside India<\/span><\/li>\n<\/ul>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- \/wp:list --><\/p>\n<p><!-- wp:quote --><\/p>\n<blockquote>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Quick check: <\/strong><span style=\"font-weight: 400;\">Is the repayment for a loan originally extended from India with a maturity of up to 1 year? Use P0011. For medium or long-term loan repayments (over 1 year), use P0012.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<\/blockquote>\n<p><!-- \/wp:quote --><\/p>\n<p><!-- wp:heading --><\/p>\n<h2><strong><strong><strong>Wrong Code? Use These Instead<\/strong><\/strong><\/strong><\/h2>\n<p>&nbsp;<\/p>\n<figure>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>If your money is from\u2026<\/b><\/p>\n<\/td>\n<td>\n<p><b>Correct code to use<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Repayment of medium\/long-term loans to non-residents (over 1 year)<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0012<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">ECB \u2014 loan received by India from non-resident (opposite direction)<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0013<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Return of equity investment abroad<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0001<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Interest received on loans to non-residents<\/span><\/p>\n<\/td>\n<td>\n<p><b>Applicable income code \u2014 consult your CA<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Non-resident deposits being placed with Indian bank<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0014<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><br><\/p><\/figure>\n<h2><strong><strong>Documents to Keep Ready<\/strong><\/strong><\/h2>\n<figure>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Document<\/b><\/p>\n<\/td>\n<td>\n<p><b>Why you need it<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Original loan agreement<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">The underlying short-term loan contract specifying amount, maturity, and terms<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Loan disbursement records<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Proof the loan was originally extended from India to the non-resident<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repayment schedule \/ demand notice<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Confirms the amount due and the payment being received<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>SWIFT \/ wire transfer confirmation<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Confirms receipt of the repayment from the non-resident borrower<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>e-FIRA<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Official proof of inward remittance tagged P0011<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>FEMA compliance records<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Evidence the original loan was extended under a permitted FEMA route<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><br\/>\n<\/figure>\n<h2><strong>What is an e-FIRA &#8211; and Why Does It Matter?<\/strong><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>An e-FIRA (Electronic Foreign Inward Remittance Advice) is the official proof that foreign money entered India. It confirms the nature and purpose of the inflow, which matters for tax treatment, FEMA compliance, and audit trails.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Your bank generates it automatically once the funds land. You can usually download it from your internet banking portal or request it at your Forex desk. The e-FIRA will reflect the correct purpose code, which your CA or accounts team will reference during filings.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:quote --><\/p>\n<blockquote>\n<p><!-- wp:paragraph --><\/p>\n<p>&nbsp;<strong>Did you know? <\/strong>Some banks take days to issue an e-FIRA. With Remit Circle, you can download yours instantly at no charge the moment your payment is credited. \u2192 Get your free e-FIRA via Remit Circle<\/p>\n<p>&nbsp;<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<\/blockquote>\n<p><!-- \/wp:quote --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:heading --><\/p>\n<h2><strong>Receive Inward Remittances Compliantly with Remit Circle<\/strong><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Getting the purpose code right on an inward remittance isn&#8217;t just a formality, a mismatch can cause payment holds, RBI queries, or incorrect tax treatment. Remit Circle is built to handle this for you.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Instant e-FIRA &#8211; <\/strong>Download your Foreign Inward Remittance Advice the moment funds are credited. No waiting on the bank, no Forex desk visits. Free.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Correct purpose code, every time &#8211; <\/strong>Remit Circle flags the right code for your transaction type before the payment is processed, so there are no mismatch holds at the bank.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Multi-currency support &#8211; <\/strong>Receive in USD, EUR, GBP, AUD and more. Funds settle directly into your Indian bank account at competitive rates.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Compliance-ready records &#8211; <\/strong>Every transaction comes with a clean audit trail purpose code, amount, date, counterparty so you and your CA are always on the same page.<\/p>\n<p>&nbsp;<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:pullquote --><\/p>\n<figure>\n<blockquote>\n<p><strong>Start receiving international payments with Remit Circle<\/strong><\/p>\n<p><cite>Open a free account in minutes. No minimum balance, no hidden fees. Get your e-FIRA instantly on every inward remittance.<br><strong>&nbsp;<a href=\"https:\/\/remitcircle.com\/authentication\/login\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/remitcircle.com\/authentication\/login\">Open your free Remit Circle account \u2192<\/a><\/strong><\/cite><\/p>\n<\/blockquote>\n<\/figure>\n<p><!-- \/wp:pullquote --><\/p>\n<p data-interaction-id=\"4b9f9bb\">\n<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-016085a e-con e-atomic-element e-flexbox-base e-0b9bbf0 \" data-id=\"016085a\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"016085a\">\n    <div class=\"elementor-element elementor-element-030e7ae e-con e-atomic-element e-flexbox-base e-030e7ae-52c9506 \" data-id=\"030e7ae\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"030e7ae\">\n    <div class=\"elementor-element elementor-element-737e84b e-con e-atomic-element e-flexbox-base e-737e84b-7b3756f \" data-id=\"737e84b\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"737e84b\">\n    <div class=\"elementor-element elementor-element-d6925e7 e-con e-atomic-element e-flexbox-base e-d6925e7-3ff0ac3 \" data-id=\"d6925e7\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"d6925e7\">\n    \t\t\t<h2 data-interaction-id=\"c9dfea1\" class=\"e-c9dfea1-b241ba2 e-heading-base\"><strong id=\"e-mser367n-mouqw3g\">Frequently Asked Questions<\/strong><br><\/h2>\n\t\t\t\t<div class=\"elementor-element elementor-element-2a2855a elementor-widget elementor-widget-n-accordion\" data-id=\"2a2855a\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:200,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-4420\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-4420\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: What is RBI purpose code P0011? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-4420\" class=\"elementor-element elementor-element-a4a2b95 e-con-full e-flex e-con e-child\" data-id=\"a4a2b95\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"8fe1461\">P0011 is used when an Indian lender - bank, NBFC, or company - receives repayment of a short-term loan (maturity up to 1 year) that it originally extended to a non-resident borrower. It records the inward return of Indian credit capital from abroad.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-4421\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-4421\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: What defines a 'short-term' loan for the purposes of P0011? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-4421\" class=\"elementor-element elementor-element-ff2b01f e-con-full e-flex e-con e-child\" data-id=\"ff2b01f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"61a2a4e\">Short-term loans are generally those with an original contractual maturity of up to one year (12 months). If the loan was originally structured with a maturity exceeding one year, it falls under P0012 even if it is repaid early. The classification is based on the original tenor, not the actual repayment date.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-4422\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-4422\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Is the interest component on the loan also tagged P0011? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-4422\" class=\"elementor-element elementor-element-5b1ee4e e-con-full e-flex e-con e-child\" data-id=\"5b1ee4e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"88ce11f\">No. P0011 covers the principal repayment only. Interest income received on loans extended to non-residents is classified under a separate income purpose code. If the non-resident sends a combined principal-and-interest payment, your bank may need to split the remittance across two purpose codes. Confirm with your AD bank.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-4423\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-4423\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Do Indian companies need RBI approval to extend short-term loans to non-residents? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-4423\" class=\"elementor-element elementor-element-a39b560 e-flex e-con-boxed e-con e-child\" data-id=\"a39b560\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"187fd92\">Indian companies extending loans to non-residents must comply with FEMA regulations. Loans to overseas subsidiaries or associates are governed by the ODI framework. Loans to unrelated non-residents face more restrictive rules. The permissibility and any approval requirements depend on the nature of the borrower and the loan terms. Your AD bank and a FEMA specialist should be consulted.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-4424\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"5\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-4424\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: What if the non-resident borrower defaults on repayment? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-4424\" class=\"elementor-element elementor-element-73e7cde e-flex e-con-boxed e-con e-child\" data-id=\"73e7cde\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"b338da5\">If a non-resident borrower defaults, the Indian lender may need to pursue legal remedies in the borrower's jurisdiction, initiate recovery proceedings, or write off the loan under RBI guidelines. Unrecovered loans that remain outstanding beyond stipulated periods may need to be reported to the RBI. FEMA non-compliance provisions may apply if the original loan was not properly sanctioned.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-4425\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"6\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-4425\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: How does P0011 interact with P0012 for a loan that was short-term but got extended? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-4425\" class=\"elementor-element elementor-element-34eed95 e-flex e-con-boxed e-con e-child\" data-id=\"34eed95\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"5210fc3\">If a short-term loan is formally restructured or extended beyond one year, the classification may shift from short-term to medium\/long-term. When the restructured loan is repaid, P0012 may be the more appropriate code for the repayment. Any extension of a cross-border loan should be reported to your AD bank, who can advise on the correct purpose code at repayment.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"An Indian lender is receiving repayment from a non-resident borrower on a short-term loan that was originally extended from India\nIndian banks, NBFCs, and companies that lent money on a short-term basis to non-resident entities and are now receiving repayment\nInward remittance (money coming into India)","protected":false},"author":260895650,"featured_media":2272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_page_reading_time":"","csco_page_toc_navigation":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1384],"tags":[],"class_list":["post-2271","post","type-post","status-publish","format-standard","has-post-thumbnail","category-purpose-codes","cs-entry","cs-video-wrap"],"jetpack_publicize_connections":[],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/phhXOC-AD","jetpack-related-posts":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/blog.remitcircle.com\/wp-content\/uploads\/2026\/09\/P0011.png?fit=1200%2C800&ssl=1","_links":{"self":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/users\/260895650"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/comments?post=2271"}],"version-history":[{"count":19,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2271\/revisions"}],"predecessor-version":[{"id":2376,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2271\/revisions\/2376"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/media\/2272"}],"wp:attachment":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/media?parent=2271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/categories?post=2271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/tags?post=2271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}