RESERVE BANK OF INDIA
(FOREIGN EXCHANGE DEPARTMENT)
CENTRAL OFFICE
MUMBAI
Notification No. FEMA. 232/2012-RB
May 30, 2012
Foreign Exchange Management (Borrowing or Lending
in Foreign Exchange) (Amendment) Regulations, 2012
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 (42 of 1999), the Reserve Bank of India hereby makes the following
amendments in the Foreign Exchange Management (Borrowing or Lending in Foreign
Exchange) Regulations, 2000, (Notification No. FEMA. 3/2000-RB dated May 3, 2000),
namely:-
1. Short title and commencement:
(a) These Regulations may be called the Foreign Exchange Management (Borrowing
or Lending in Foreign Exchange) (Amendment) Regulations, 2012
(b) They shall be deemed to have come into force from the date specified in
these regulations. @
2. Amendment of the Regulations:
In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange)
Regulations, 2000 (Notification No. FEMA 3/2000-RB dated May 3, 2000)
(hereinafter referred to as ‘the principal regulations’)
(A) In Schedule I, in paragraph(1)
(a) for clause (b), in sub paragraph (i), the following shall be substituted and
shall be deemed to have been substituted with effect from 19th day of December
2011, namely,
“Non Government Organisations and Micro Finance Institutions engaged in
micro-finance activities may borrow in foreign exchange under this Schedule
under such terms and conditions as specified by the Reserve Bank from time to
time.
Provided that they have not at any time violated any of the provisions of these
regulations and no investigation is pending against them for contravention of
the provisions of these regulations under the Act.”
(b) for clause (b), in sub-paragraph (ii), the following shall be substituted
and shall be deemed to have been substituted with effect from 19th day of
December 2011, namely:-
“The borrowings in foreign currency under as specified in paragraph (i) (b) of
section I of Schedule I, by a non-government organisation and Micro Finance
Institution engaged in micro-finance activities shall not exceed USD 10 million
or equivalent during a financial year (April-March).”
(c) for sub-paragraph (v) the following shall be substituted and shall be deemed
to have been substituted with effect from 23rd day of September 2011, namely:-
“v) Maturity
The maturity of the borrowings in foreign exchange shall be as under :
Amount |
Minimum Average Maturity |
i) |
Up to USD 20 Million or equivalent |
Not less than 3 years. |
ii) |
Exceeding USD 20 Million or equivalent and upto USD 750 Million or equivalent
|
Not less than 5 years. |
Note - Borrowing up to US$ 20 Million can have call / put option provided the
minimum average maturity of 3 years as prescribed above is complied with before
exercising call / put option. “ |
(B) In Schedule II,
for sub-paragraph (iv), in paragraph (3), the following shall be substituted and
shall be deemed to have been substituted with effect from 23rd day of September
2011, namely:-
“(iv) Maturity
(a) The maturity of borrowings in foreign exchange shall be as under:
Amount |
Average Maturity |
(i) Upto USD 20 million or equivalent
|
Not less than 3 years |
(ii) Exceeding USD 20 million or equivalent
|
Not less than 5 years |
(b) Borrowings upto USD 20 million can have call/put option provided the minimum
average maturity of 3 years as prescribed in clause (a) is complied with before
exercising call/put option.”
(Rashmi Fauzdar)
Chief General Manager
Foot Note:
@ It is clarified that no person will be adversely affected as a result of
retrospective effect being given to these regulations
1. The Principal Regulations were published in the Official Gazette vide No.
G.S.R. No.386 (E) dated May 5, 2000 in Part II, Section 3, sub-section (i) and
subsequently amended vide:
- No. G.S.R.674 (E) dated August 25,2000
- No. G.S.R.476 (E) dated July 8,2002
- No. G.S.R.854 (E) dated December 31,2002
- No. G.S.R.531 (E) dated July 9,2003
- No. G.S.R.533 (E) dated July 9,2003
- No. G.S.R.208 (E) dated March 23,2004
- No. G.S.R.825 (E) dated December 22,2004
- No. G.S.R.60 (E) dated February 9,2005
- No. G.S.R.739 (E) dated December 22,2005
- No. G.S.R.663 (E) dated October 16,2007
- No. G.S.R.61 (E) dated January 30,2009
- No. G.S.R.547( E) dated July 27, 2009
- No. G.S.R. 836(E) dated November 23, 2009