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Resident Foreign Currency (Domestic) Account - Facility for Resident
Individuals
A.P.
(DIR Series) Circular No. 53 date 23rd November 2002
Attention
of authorised dealers is invited to A.P. (DIR Series) Circular No. 37 dated
November 1, 2002 in terms of which, pending publication of the Notification by
the Government, they are required to forward the request received by them for
opening of Resident Foreign Currency (Domestic) Accounts to Regional Office of
the Reserve Bank with their recommendations.
2.
Reserve Bank has issued Notification No. FEMA. 74/2002-RB dated November
1, 2002 (copy enclosed) amending its Notification No. FEMA 10/ 2000-RB dated May
3, 2000 allowing a person resident in India to open, hold and maintain with an
authorised dealer in India a foreign currency account to be known as Resident
Foreign Currency (Domestic) Account out of foreign exchange acquired in the form
of currency notes, bank notes and travellers cheques.
3.
Accordingly, it will be in order for authorised dealers to open, hold and
maintain such account for a person resident in India subject to compliance with
the terms and conditions stipulated in the Notification and A.P. (DIR Series)
Circular No. 37 referred to above.
4.
Necessary amendments may be carried out in Notification No. FEMA 10/
2000-RB dated May 3, 2000 as indicated in Notification No. FEMA 74/2002-RB dated
November 1, 2002.
5.
Authorised dealers may bring the contents of the circular to the notice
of their constituents concerned.
6.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999).
FEMA
NOTIFICATION NO. 74 DATED 1ST NOVEMBER 2002
FOREIGN
EXCHANGE MANAGEMENT (FOREIGN CURRENCY ACCOUNTS BY A PERSON RESIDENT IN INDIA)
(AMENDMENT) REGULATIONS, 2002
In
exercise of the powers conferred by clause (b) of Section 9 and clause (e) of
sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42
of 1999), and in partial modification of its Notification No. FEMA 10/2000-RB
dated May 3, 2000, the Reserve Bank of India makes the following amendments in
the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident
in India) Regulations 2000, namely: -
1.
Short title and commencement:
a.
These Regulations may be called the Foreign Exchange Management (Foreign
Currency Accounts by a Person Resident in India) (Fifth Amendment) Regulations,
2002.
b.
They shall come into force on their publication in the Official Gazette.
2.
Amendment of the Regulations:
In
the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident
in India) Regulations, 2000, after Regulation 5 the following Regulation shall
be added, namely:
"5
A. Opening, holding and maintaining a Resident Foreign Currency (Domestic)
Account
(1)
A person resident in India may open, hold and maintain with an Authorised
Dealer in India a foreign currency account, to be known as Resident Foreign
Currency (Domestic) Account, out of foreign exchange acquired in the form of
currency notes, bank notes and travellers� cheques:
a.
while on a visit to any place outside India by way of payment for
services not arising from any business in or anything done in India; or
b.
from any person not resident in India and who is on a visit to India, as
honorarium or gift or for services rendered or in settlement of any lawful
obligation; or
c. by way of
honorarium or gift while on a visit to any place outside India; or
d.
represents the unspent amount of foreign exchange acquired by him from an
authorised person for travel abroad.
(2)
Debits to the account shall be for payments towards a current account
transaction in accordance with the provisions of the Foreign Exchange Management
(Current Account Transactions) Rules, 2000 and towards a capital account
transaction permissible under the Foreign Exchange Management (Permissible
Capital Account Transactions) Regulations, 2000.
(3)
The account shall be maintained in the form of Current Account and shall
not bear any interest.
(4)
There shall be no ceiling on the balances in the account.
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