TMI BlogOpening, holding and maintaining a Foreign Currency Account outside IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... ctions issued thereunder. (2) A branch outside India of a bank incorporated or constituted in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of carrying on normal banking business outside India, subject to compliance with the directions or guidelines issued from time to time by the Reserve Bank, and the regulatory authority in the country where the branch is located. (3) A shipping or airline company incorporated in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of undertaking transactions in the ordinary course of its business. (4) Life Insurance Corporation of India or General Insurance Corporation of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l sales/income or turnover during the last financial years where the remittances are made to meet recurring expenses of the branch or office or representative (w.e.f. 4 th Dec.2006) (c). the overseas branch/office/representative shall not enter in any contract or agreement in contravention of the Act, Rules or Regulations made thereunder; (d) the account so opened, held or maintained shall be closed, (a) if the overseas branch./office is not set up within six months of opening the account, or (b) within one month of closure of the overseas branch/office, or (c) where no representative is posted for six months, and the balance held in the acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , provided that - (a) approval as required under the Foreign Exchange Management (Export of goods and services) Regulations, 2000 has been obtained for undertaking the contract/project/export of goods or services, and (b) Foreign Currency Accounts by a Person Resident in India the terms and conditions stipulated in the letter of approval have been duly complied with. (6) A person resident in India who has gone abroad for studies or who is on a visit to a foreign country may open, hold and maintain a Foreign Currency Account with a bank outside India during his stay outside India, provided that on his return to India, the balance in the account is repatriated to India : Provided that short vis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith a bank outside India and remit the whole salary received in India in Indian Rupees, to such account, for the services rendered to such an Indian company, provided that income-tax chargeable under the Income-tax Act, 1961 is paid on the entire salary in India. ] 8 [Explanation : For the purpose of this sub regulation, the expression company shall include a Limited Liability Partnership as defined under The Limited Liability Partnership Act, 2008 ] 6 [ (9) An Indian party may open, hold and maintain Foreign Currency Account (FCA) abroad for the purpose of overseas direct investments subject to the following terms and conditions: (i) The Indian party is eligible for overseas direct inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssigned to it in Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004. ] ****************************** Notes : 1. Sub-regulation 8 has been added vide Notification No. 034/2001 dated 22/1/2001 . Further substituted vide notification no. 199/2009-RB dated 30-9-2009, before it was read as, (8) 4 A national of a foreign state resident in India being an employee of a foreign company or a citizen of India employed by a foreign company outside India and in either case on deputation to the office/branch/subsidiary/joint venture in India of such foreign company may open, hold and maintain a foreign currency account with a bank outside India and received the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e salary received in India in Indian Rupees, to such account, for the services rendered to such an Indian company, provided that income-tax chargeable under the Income-tax Act, 1961 is paid on the entire salary in India. ] 2. Has been inserted vide Notification No. 047/2001 dated 5/12/2001 3. For the words 'Foreign Currency Account with a bank outside India', the words, 'Foreign Currency Account with a bank outside or in India' has been substituted vide Notification No. 087/2003 dated 20/3/2003 4. For the words 'A national of a foreign State resident in India being an employee of a foreign company on deputation', the words 'A national of a foreign State resident in India being an employee of a for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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