RBI/2015-16/317
A.P. (DIR Series) Circular No. 50
February 11, 2016
To,
All Authorised Dealers in Foreign Exchange
Madam / Sir,
Compilation of R-Returns: Reporting under FETERS
Attention of Authorised Dealer (Category I) banks is invited to A.P.(DIR
Series) Circular No.84 dated February 29, 2012 giving guidelines for compilation
of R-Returns for reporting under the Foreign Exchange Transactions Electronic
Reporting System (FETERS),
A.P.(DIR Series) Circular No.101 dated February 4,
2014 on Export of Goods and Services: Export Data Processing and Monitoring
System (EDPMS) for facilitating banks to submit export-related information
through EDPMS platform and
A.P.(DIR Series) Circular No.15 dated July 28, 2014
which discontinued separate reporting of information in ENC (Export Bills
Negotiated / sent for collection) for acknowledgement of receipt of export
documents and Sch.3 to 6 (realization of export proceeds) under FETERS.
Web based data submission by AD banks
- In order to enhance the security-level in data submission and further
improve data quality, the following modifications shall be effected in the
guidelines for submission of data under the FETERS from 1st fortnight of April
2016 (i.e., reporting of those transactions which take place from April 1,
2016):
The present email-based submission will be replaced by web-portal based data
submission. However, there are no changes in periodicity, file-layout,
delimiter, consistency checks, and inter-relationship among BOP6.TXT and QE.TXT
files as well as their naming convention.
Nodal offices of banks have to access the web-portal
https://bop.rbi.org.in with
the RBI-provided login-name and password, to submit data (Contact and other
details are given in the above-mentioned Circular dated February 29, 2012).
Banks may download RBI-provided validator template from this portal on their
computer and perform off-line check of their FETERS data-file for error, if any,
before its submission on the portal. Both Java-based and Excel-based validators
are provided: Use of Java-based validator is advised for larger files. This
portal also gives relevant master files (e.g., country, currency, AD code,
purpose code masters).
On uploading validated files, banks will get acknowledgment. They can view the
data-files submitted by them during the previous two fortnights, with download
facility. They can also revise the purpose codes for transaction submitted
earlier, if required, which will be authenticated by RBI in the system.
Banks may report (a) addition of AD code for their bank and (b) update AD
category, which will be incorporated in the AD-master database by RBI after due
authentication.
With the discontinuation of ENC.TXT and SCH3to6.TXT files in FETERS, the purpose
codes P0105 [Export bills (in respect of goods) sent on collection – other than
Nepal and Bhutan] and P0107 [Realisation of NPD export bills (full value of bill
to be reported) – other than Nepal and Bhutan] have become defunct and are,
therefore, discontinued.
Revision in Form A2
- Further, in-order to streamline the reporting of the transactions relating to
the Liberalised Remittance Scheme (LRS) in FETERS and On-line Return Filing
System (ORFS), it has been decided that transactions relating to LRS may be
reported under respective FETERS purpose codes (e.g. travel, medical treatment,
purchase of immovable property, studies abroad, maintenance of close relatives;
etc.) instead of reporting collectively under the purpose code S0023. This would
help AD banks in classification of transactions for similar activity under
single purpose code. Therefore, the purpose code S0023 would be revised as
follows to enable reporting of ‘Opening of foreign currency account abroad with
a bank’:
i. For facilitating the existing monthly reporting of LRS transactions under
ORFS, AD banks may use the following purpose codes only:
| Sr. No. |
Items under LRS |
Corresponding FETERS purpose codes, if transaction is
identified under LRS |
| 1 |
Opening of foreign currency account abroad with a bank under LRS
|
S0023 |
| 2 |
Purchase of immovable property |
S0005 |
| 3 |
Investment in equity, debt, JV, WoS, ESOPs, IDRs
|
S0001, S0002, S0003, S0004,
S0021, S0022 |
| 4 |
Gift |
S1302 |
| 5 |
Donations |
S1303 |
| 6 |
Travel (business, pilgrimage, medical treatment, education, employment,
personal) |
S0301, S0303, S0304, S0305 & S0306 |
| 7 |
Maintenance of close relatives |
S1301 |
| 8 |
Medical Treatment |
S1108 |
| 9 |
Studies abroad |
S1107 |
| 10 |
Emigration |
S1307 |
| 11 |
‘Others’ such as loan to NRI close relatives and health insurance
|
S0011,
S0603 |
ii. AD banks should also ensure that the data pertaining to LRS transactions
reported by them in FETERS tallies with that reported by them in ORFS.
iii. The Form A2 is also being revised (as per Annex) by introducing a check-box
for LRS transactions in the relevant block as follows:
| Sr. No. |
Whether under LRS (Yes/No) |
Purpose Code |
Description |
| |
|
|
As per the Annex |
iv. Further, the ‘Application cum Declaration for purchase of foreign exchange
under the Liberalised Remittance Scheme of USD 250,000’ has been clubbed with
Form A2 inorder to reduce multiplicity of forms to be filled in by the
customers.
Online submission of Form A2 by the remitter
- With a view to facilitating miscellaneous remittances and reducing paperwork
associated with payment transactions, it has been decided that Authorised Dealer
banks, offering internet banking facilities to their customers may allow online
submission of Form A2. Besides, they may also enable uploading/submission of
documents, if and as may be necessary, to establish the permissibility of the
remittances under the extant rules or regulations framed under the Foreign
Exchange Management Act, 1999 (FEMA). Remittances that do not require any
documentation (e.g. certain transactions under the LRS) may be put through on
the basis of the Form A2 alone. To start with, remittances on the basis of
online submission alone will be available for transactions with an upper limit
of USD 25,000 (or its equivalent) for individuals and USD 100,000 (or its
equivalent) for corporates. It may be noted that the remittance will be subject
to satisfaction of the Authorised Dealer banks as laid down in Section 10 (5) of
FEMA. Accordingly, Authorised Dealer banks are advised to frame appropriate
guidelines for customer interface personnel to ensure ease of transactions for
the customers within the ambit of the statutory/regulatory provisions. It may be
further noted that reporting of transactions in FETERS shall continue, as
hitherto, by the Authorised Dealer banks.
- Appropriate changes in technology and/or operating procedure may be carried
out by Authorised dealer banks immediately and compliance in this regard
furnished to RBI.
- The changes introduced through this circular may be implemented with
immediate effect and in any case not later than April 1, 2016.
- Authorised Dealer banks may bring the contents of this circular to the notice
of their constituents.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(B.P.Kanungo)
Principal Chief General Manager
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