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Foreign Exchange Management (Borrowing or Lending in Foreign Exchange)
(Second Amendment) Regulations, 2002
FEMA
Notification No. 75 dated 1st November 2002
In
exercise of the powers conferred by clause (d) of sub-section (3) of Section 6
and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999
(Act 42 of 1999), and in partial modification of its Notification No. FEMA
3/2000-RB, dated May 3, 2000, as amended from time to time, the Reserve Bank of
India makes the following amendments in the Foreign Exchange Management
(Borrowing or Lending in Foreign Exchange) Regulations, 2000 namely: -
1.
(i)
These Regulations may be called the �Foreign Exchange Management
(Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2002.
(ii)
They shall come into force with effect from their publication in the
Official Gazette.
2.
In the Foreign Exchange Management (Borrowing or lending in Foreign
Exchange) Regulation, 2000.
(i)
In Regulation 5, after sub-regulation (5), the following sub-regulation
shall be added namely:
�(6)
An individual resident in India may borrow a sum not exceeding US $ 250,000/- or
its equivalent from his close relatives outside India, subject to the conditions
that-
a.
the minimum maturity period of the loan is one year;
b.
the loan is free of interest; and
c.
the amount of loan is received by inward remittance in free foreign
exchange through normal banking channels or by debit to the NRE/ FCNR account of
the non-resident lender.
Explanation:
�Close relative� means relative as defined in Section 6 of the Companies
Act, 1956.
(ii)
in the Schedule, clause (iv) with the heading �Scheme for raising loans
from NRIs on repatriation basis� shall be omitted.
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