Reserve bank of India
A.P. (DIR Series) Circular No. 08
July 11, 2013
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Overseas Investments – Shares of SWIFT
Attention of the Authorised Dealers (AD) is invited to Foreign Exchange
Management (Transfer or Issue of any Foreign Security) Regulations, 2004
notified by the Reserve Bank vide
Notification No. FEMA 120/RB-2004 dated July
07, 2004 and as amended from time to time.
- As per the extant FEMA provisions, the proposal of acquisition of the shares
of Society for Worldwide Interbank Financial Telecommunication (SWIFT), Belgium
by the resident bank is considered by the Reserve Bank on case to case basis
under the approval route.
- On a review, it has now been decided to grant general permission to a bank in
India, being licensed by the Reserve Bank under the provisions of the Banking
Regulation Act, 1949, to acquire the shares of SWIFT as per the by-laws of
SWIFT, provided the bank has been permitted by the Reserve Bank for admission to
the ‘SWIFT User’s Group in India’ as member.
- This modification shall come into force with immediate effect. Necessary
amendment to the
Notification No. FEMA.120/RB-2004 dated July 07, 2004 has been
issued vide Notification No. FEMA.271/RB-2013 dated May 29, 2013 and notified
vide dated G.S.R.No.345 (E) dated 29.05.2013 (copy enclosed).
- AD - Category I banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions/approvals, if any, required under any
other law.
Yours faithfully,
(C. D. Srinivasan)
Chief General Manager
RBI/2013-14/131