RBI/2011-12/176
A.P. (DIR Series) Circular No. 15
September 15, 2011
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
Exchange Earners Foreign Currency (EEFC) Account
and Resident Foreign Currency (RFC) account – Joint holder - liberalisation
Attention of the Authorised Dealer (AD) banks is invited to the Regulation 4
and 5 of the
Notification No. FEMA 10/2000-RB dated May 3, 2000 viz. Foreign
Exchange Management (Foreign Currency Accounts by a person resident in India)
Regulations, 2000 in terms of which resident individuals are permitted to open
EEFC and RFC account, respectively.
- The Committee to Review the Facilities for Individuals under the
Foreign Exchange Management Act, 1999 has in its Report recommended that RFC
/ EEFC accounts may be permitted to be held jointly with a resident close
relative, as defined in Section 6 of the Companies Act, 1956.
- On a review, it has been decided that resident individuals may be
permitted to include resident close relative(s) as defined in the Companies
Act, 1956 as a joint holder(s) in their EEFC/RFC bank accounts on ‘former or
survivor’ basis. However, suchresident Indian close relative, now being made
eligible to become joint account holder, shall not be eligible to operate
the account during the life time of the resident account holder.
- The necessary amendments to the Foreign Exchange Management (Foreign
Currency Accounts by a person resident in India) Regulations, 2000 are being
issued separately.
- AD banks may bring the contents of this circular to the notice of their
account holders concerned.
- 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,
(Meena Hemchandra)
Chief General Manager In-Charge