TMI BlogForeign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015X X X X Extracts X X X X X X X X Extracts X X X X ..... is felt necessary to revise the regulations issued under the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000 , as amended from time to time. Accordingly, in consultation with the Government of India, the said regulations have been repealed and replaced by the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015. 2. According to the regulations, a Foreign Currency Account means an account held or maintained in currency other than the currency of India or Nepal or Bhutan. 3. These regulations seek to regulate opening and maintenance of foreign currency accounts in and outside India by a person resident in India. 4. In terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; Indian agents of foreign airline or shipping companies; Ship-manning/ crew managing agencies in India; Project offices set up in India in terms of Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000 dated May 3, 2000 , as amended from time to time; Indian companies receiving Foreign Direct Investment. Organisers of international seminars, conferences, conventions etc. 6. In terms of Regulation No. 5, the following persons resident in India can open foreign currency accounts outside India subject to the conditions specified in the regulations (details wherever necessary are given in Annex to this circular): An authorized dealer in India with its br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India employed with an Indian company 7. In terms of regulation 6, unless otherwise specifically stated, a Foreign Currency Account with an authorized dealer in India under these Regulations may be opened, held and maintained in the form of current or savings or term deposit account in cases where the account holder is an individual, and in the form of current account or term deposit account in all other cases. The account can be held singly or jointly in the name of person eligible to open, hold and maintain such account. 8. The new regulations have been notified vide Notification No. FEMA 10(R)/2015-RB dated January 21, 2016, c.f. G.S.R. No.96 (E) dated January 21, 2016 and shall come into force with effect from January 21, 2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for utilization of the balances for approved purposes or forward commitments. Credit Facilities: Credit facilities, both fund-based and non-fund based should not be granted against the balances held in EEFC Accounts. Exporters can repay packing credit advances, whether availed of in Rupee or in foreign currency, from balances in their EEFC account to the extent exports have actually taken place. Balances may be credited to NRE/ FCNR(B) accounts, at the option/ request of the account holders consequent upon change of their residential status from resident to non-resident. II. Resident Foreign Currency (RFC) Account [Regulation 4(B)] Resident individuals are allowed to open a Resident Foreign Currency (RFC) Account with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Special Economic Zone may open hold and maintain a Foreign Currency Account with an authorized dealer to credit all foreign exchange funds received by the unit. The account can be used for bona fide trade transactions between the unit and a person resident in/ outside India. V. Diamond Dollar Accounts (DDA) [Regulation 4(E)] The terms and conditions under which this account can be opened, held and maintained are laid down in Schedule II to the regulations. The sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments. VI. Ship-man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Currency Account. Debits: Payment of project related expenditure. Credits: Foreign currency receipts from the Project Sanctioning Authority, and Remittances from parent/ Group Company abroad or bilateral/ multilateral international financing agency. The Foreign Currency account may be closed at the completion of the project. Inter-project transfer of funds will be permitted with the prior permission of the Regional Office of the Reserve Bank under whose jurisdiction the Project Office is situated. In case of disputes between the Project Office and the project sanctioning authority or other Government/Non-Government agencies etc., the balance held in such account shall be converted i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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