FEMA - amendments

1.  Circular no. 2 dated 31-7-2008

Foreign companies having Project Offices in India are permitted to open an additional foreign currency account in India.

It is allowed to avoid currency exposures.

2.  Circular no. 3 dated 4-8-2008

This circular deals with advance remittance without any limit and without bank guarantee or standby letter of credit, if import of rough diamonds is made from certain mining companies.

Now, the list of mining companies is increases by inclusion of two more companies.

3.  Circular no. 4 dated 48-2008

Facility of earning interest on EEFC account has been withdrawn with effect from 1-11-2008.

Earlier, vide circular no. 13 dated 6-10-2007, RBI has allowed all exporters to earn interest on EEFC accounts to the extent of outstanding balances of US $ 1 million per exporter.