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Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015

FEMA - 44 - Dated:- 4-2-2016 - RBI/2015-16/309 A.P. (DIR Series) Circular No.44/2015-16 [(1)/10(R)] February 04, 2016 To All Category - I Authorised Dealers and Authorised Banks Madam/ Sir Attention of Authorised Dealers (ADs) is invited to A.D.(M.A. Series) Circular No. 11 dated May 16, 2000 in terms of which ADs were advised of various Rules, Regulations, Notifications/ Directions issued under the Foreign Exchange Management Act, 1999 (hereinafter referred to as the Act). On a review it is fel .....

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regulate opening and maintenance of foreign currency accounts in and outside India by a person resident in India. 4. In terms of Regulation No. 4, a person resident in India may open, hold and maintain with an authorized dealer in India the following accounts, subject to the conditions specified in the regulations (details wherever necessary are given in Annex to this circular): Exchange Earner's Foreign Currency (EEFC) Account subject to the terms and conditions of the Exchange Earner s Fo .....

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reign Trade Policy of Government of India, subject to the terms and conditions of the DDA Scheme (Schedule II to the regulations) 5. In addition, in terms of Regulation No. 4, the following persons resident in India can open foreign currency accounts with an authorized dealer in India, subject to the conditions specified in the regulations (details wherever necessary are given in Annex to this circular): A unit in a Special Economic Zone; An exporter who is exporting services and engineering goo .....

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nars, 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 branch/ head office/ correspondent outside India; A branch outside India of a bank incorporated or constituted in India; An India firm/ company/ body corporate in the name of its for .....

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sing ECB or ADR/ GDR; Indian shipping or airline companies; Life Insurance Corporation (LIC) of India or General Insurance Corporation (GIC) of India and its subsidiaries for the purpose of carrying on life/ general insurance business; A resident individual under the Liberalized Remittance Scheme; A person going abroad to participate in an exhibition/ trade fair; A person going abroad for studies; A person who is on a visit to a foreign country provided the balances are repatriated on return to .....

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ined 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 fr .....

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Yours faithfully (B. P. Kanungo) Principal Chief General Manager Annex Foreign currency accounts that can be maintained by residents I. Exchange Earner s Foreign Currency (EEFC) Account [Regulation 4(A)] The terms and conditions under which this account can be opened, held and maintained are laid down in Schedule I to the regulations. The account will be in the form of a non-interest bearing current account. The claims settled in rupees by ECGC/ insurance companies should not be construed as exp .....

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oved 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 .....

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can be credited to the RFC account when the residential status of the non-resident Indian (NRI) changes to that of a Resident. III. Resident Foreign Currency (Domestic) Account (RFC(D)) [Regulation 4(C)] To enable resident individuals to keep in a bank account the foreign exchange they could retain from the sources mentioned in terms of Regulation 3(iii) of RBI Notification No.FEMA.11(R)/ 2015-RB dated December 29, 2015, they are allowed to open a Resident Foreign currency (Domestic) Account [R .....

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ers consequent upon change of their residential status from resident to non-resident. IV. A unit in a Special economic Zone [Regulation 4(D)] A unit located in a 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 a .....

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naging agencies in India to open and maintain non-interest bearing foreign currency accounts in India for the purpose of undertaking transactions in the ordinary course of its business, as detailed: Credits: Only by way of inward remittances through normal banking channels from the overseas principal. Debits: Towards various expenses in connection with the management of the ships/ crew in the ordinary course of its business. No credit facility (fund based or non-fund based) should be granted aga .....

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Project Office has been established in India, with the general/ specific permission of Reserve Bank, having the requisite approval from the concerned Project Sanctioning Authority, The contract under which the project has been sanctioned, specifically provides for payment in foreign currency, Each Project has only one Foreign Currency Account. Debits: Payment of project related expenditure. Credits: Foreign currency receipts from the Project Sanctioning Authority, and Remittances from parent/ Gr .....

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