Regulation 5 - Acceptance of Deposits by an Authorised Dealer/authorised Bank from Persons Resident Outside India - Foreign Exchange Management (Deposit) Regulations, 2000

Acceptance of deposits by an authorised dealer/authorised bank from persons resident outside India :- 5. (1) An authorised dealer in India may accept deposit (i) under the Non-Resident (External) Account Scheme(NRE account), specified in Schedule 1, from a non-resident Indian ; (ii) under the Foreign Currency (Non-Resident) Account Banks Scheme,(FCNR-B account), specified in Schedule 2, from a non-resident Indian; (iii) under the Non-Resident (Ordinary) Account Scheme, (NRO account), specified in Schedule 3, from any person resident outside India 1 [ (iv) Omitted 1 [ (v) Omitted (2) Without prejudice to sub-regulation (1), deposits under NRE, NRO and NRSR Account Schemes referred to in 2 [ clauses (i) and (iii) of that sub-regulation, may also be accepted by an authorised bank, in accordance with the provisions contained in the respective Schedules. 4 [ 2A Non-resident acquirers may, subject to the terms and conditions specified in Schedule 8, open, hold and maintain Escrow Account and Special Account with Authorised Dealers in India without prior approval of the Reserve Bank, for acquisition/transfer of shares/convertible debentures through open offers/delisting/exit offers, subject to the relevant Securities and Exchange Board of India (SAST) Regulations or any other applicable Securities and Exchange Board of India Regulations/provisions of the Companies Act, 1956. ] 6 [ (2B) Resident or Non-resident acquirers may, subject to the terms and conditions specified in Schedule 9, open, hold and maintain Escrow Account with Authorised Dealers in India without prior approval of the Reserve Bank, towards payment of share purchase consideration. Resident or Non-resident acquirers may, subject to the terms and conditions specified in Schedule 9, open and maintain, without prior approval of the Reserve Bank, Escrow accounts for securities with SEBI authorised Depository Participants. These facilities will be applicable for both issue of fresh shares to the non-residents as well as transfer of shares from/to the non-residents. ] 3 [ (3) (a) On and from 1st April 2002, (i) no deposit, whether by way of renewal of existing deposit or otherwise, shall be accepted under the Non-Resident (Non-Repatriable) Rupee Account Scheme (NRNR Account) or the Non-Resident (Special) Rupee Account Scheme (NRSR Account); (ii) existing deposits under the NRNR Account Scheme may be continued only upto the date of maturity; (iii) on maturity of the existing deposit under the NRNR Account Scheme, the maturity proceeds shall be credited to the accountholder s Non-Resident (External) Account (NRE Account), after giving notice to the account holder. (b) (i) the existing account in the form of a term deposit of the NRSR Account Scheme may be continued till the date of maturity. (ii) on maturity of the existing term deposit under the NRSR Account Scheme, the maturity proceeds shall be credited to the accountholder s Non-Resident (Ordinary) Account (NRO Account). (iii) existing NRSR account, other than a term deposit, shall not be continued after 30th September 2002 and may at the option of the account holder, be closed or the balance therein credited to his NRO account on or before that date. Explanation : For the purpose of this sub-regulation, existing deposit or existing account means a deposit or an account held on 31st March 2002. ] 5 [ (4). A Qualified Foreign Investor (QFI) may open a single non-interest bearing Rupee Account with Authorised Dealer in India without the prior approval of the Reserve Bank, for the limited purpose of routing the receipt and payment for transactions relating to purchase and sale of eligible securities as stipulated by the Reserve Bank, from time to time, subject to the following conditions: ( a ) The account shall be funded by inward remittance through normal banking channel and by credit of the sale/redemption/buyback proceeds (net of taxes) and on account of interest payment/dividend on the eligible securities for QFIs. ( b ) The funds in this account shall be utilized for purchase of eligible securities for QFIs or for remittance (net of taxes) outside India. ( c ) The Qualified Depository Participants (as per the extant SEBI regulations) will operate such non-interest bearing. Rupee Accounts on behalf of the QFIs and at the instructions of the QFIs. ] 7 [ (5) A non-resident including a Non Resident Indian (NRI) may open a single non-interest bearing Rupee Account with the Authorised Dealers in India without the prior approval of Reserve Bank of India, for the limited purpose of purchase of shares on the recognized stock exchanges in accordance with Regulation 10D of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 ( Notification No. FEMA.20/2000-RB dated 3 rd May 2000 ). ] ***************** NOTES:- 1. Omitted vide Notification No. 052/2002 dated 01-03-2002 , w.e.f. 01-03-2002. 2. For the words and figures clauses (i), (iii) and (v) , the words and figures clauses (i) and (iii) has been substituted vide Notification No. 052/2002 dated 01-03-2002 , w.e.f. 01-03-2002. 3. Inserted vide Notification No. 052/2002 dated 01-03-2002 , w.e.f. 01-03-2002. 4. inserted vide Notification No. G.S.R. 91(E) dated 18-09-2007 and Corrected vide Notification dated 28.8.2009 5. Inserted vide Notification No. FEMA 243/2012-RB, Dated 19-10-2012 , w.e.f. 19-10-2012. 6. Inserted vide Notification No. FEMA 228/2012-RB, Dated 11-04-2012 , w.e.f. 11-04-2012. 7. Inserted vide Notification No. 280/2013-RB dated 10-07-2013 , w.e.f. 10-07-2013.