RBI/2011-12/225
A.P. (DIR Series) Circular No. 36
October 19, 2011
To,
All Banks Authorised to Deal in Foreign Exchange
Madam/Sir,
Opening Foreign Currency (Non-Resident) Account
(Banks) Scheme
[FCNR(B)] account in any freely convertible currency – liberalisation
Attention of Authorised Dealer (AD) banks is invited to the Paragraph 2 of
Schedule 2 to the
Notification No.FEMA 5/2000-RB dated May 3, 2000, viz. Foreign
Exchange Management (Deposit) Regulations, 2000, as amended from time to time,
read with
Notification No. FEMA 14/2000-RB dated May 3, 2000, viz. Foreign
Exchange Management (Manner of Receipt and Payment) Regulations, 2000, as
amended from time to time, in terms of which deposit of funds in the Foreign
Currency (Non-Resident) Account (Banks) Scheme [FCNR(B)] accounts may be
accepted in such permissible currencies as may be designated by the Reserve Bank
from time to time. Presently, Pound Sterling, US Dollar, Japanese Yen, Euro,
Canadian Dollar and Australian Dollar are the currencies designated by the
Reserve Bank.
- The Committee to Review the Facilities for Individuals under FEMA, 1999 in
its Report has recommended that FCNR(B) accounts may be permitted to be opened
in any freely convertible currency.
- On a review, it has been decided that AD banks in India may be permitted to
accept FCNR (B) deposits in any permitted currency. It may be noted that
'Permitted currency' for this purpose would mean a foreign currency which is
freely convertible as defined in terms of Regulation 2(v) of FEMA 14/2000-RB
dated May 3, 2000, as amended from time to time.
- Authorised Dealer 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