Foreign Exchange Control Manual, Chapter-16, Returns And Statements.

CHAPTER 16

RETURNS AND STATEMENTS
General
Submission of Returns
Maintenance of Records
Authorised Dealers' Code Numbers
Offices/Branches of Authorised Dealers handling Foreign Exchange Business
R Returns
Earnings from Tourism
Other Periodic Statements

RETURNS AND STATEMENTS

General

16.1    Returns and statements prescribed in the Manual are used in the Reserve Bank for compiling very valuable data relating to the country's financial transactions with the external world as well as for exercising supervision over the operations of authorised dealers. Authorised dealers should, therefore, maintain proper internal organisation both in their controlling offices as well as operating branches so that the returns/statements and other data prescribed in the Manual or prescribed by separate instructions are prepared accurately in a systematic manner and submitted to Reserve Bank within the prescribed time schedule. The work of compilation of returns and statements should be entrusted in the controlling offices and operating branches to personnel possessing requisite knowledge and experience of foreign exchange operations. Authorised dealers must undertake periodic reviews of the arrangements for compilation and submission of data to Reserve Bank to see that they are adequate and the requisite manpower and other resources continue to be available.

Submission of Returns

16.2

1. Unless specifically indicated otherwise, all returns/statements should be submitted to the office of Reserve Bank under whose jurisdiction the concerned office/branch of uthorised dealer is situated. If in any period, there are no transactions to report, the 'NIL' position may be advised by letter within the prescribed period. Authorised dealers should ensure that the returns and statements submitted to Reserve Bank reflect correctly and completely all the relevant transactions undertaken by them during the relevant period and all the supporting forms have been correctly filled up and annexed.
2. Section 73A of FERA 1973 empowers Reserve Bank to impose fine on an authorised dealer for contravention of Reserve Bank's directions or for failure to file returns as specified by Reserve Bank. Reserve Bank will, therefore, take a serious view of the failure of any branch of an authorised dealer to furnish returns and statements regularly or promptly as well as of any irregularities detected in their compilation and where it deems fit, it may impose financial penalty as provided in Section 73A of FERA 1973 or even direct the authorised dealer concerned to refrain from transacting foreign exchange business at the branch concerned.

Maintenance of Records

16.3    Authorised dealers should maintain proper records of all purchases and sales of foreign currencies made by them and also of all transactions relating to foreign exchange business including those on non-resident accounts and foreign currency accounts held in their books.

Authorised Dealers' Code Numbers

16.4    Every office or branch of an authorised dealer must indicate the complete fourteen digit code number allotted by Reserve Bank to the office/branch at the top of all its returns/statements submitted, irrespective of the office/department to which the returns are submitted as also on each remittance form and all copies of GR / PP / SOFTEX forms enclosed to or forwarded with Returns.

Offices/Branches of Authorised Dealers handling Foreign Exchange Business

16.5

1. The Head/Principal Office of each authorised dealer should furnish an up-to-date list (in triplicate) of all its offices/branches which are authorised to transact foreign exchange business, as at the end of December every year giving their addresses and code numbers to the Chief General Manager, Exchange Control Department (Central Statistical Division), Reserve Bank of India, Central Office, Mumbai-400 001, so as to reach by 15th January of the following year. The lists should be completed showing the distribution of offices/branches area-wise i.e. according to area of jurisdiction of Reserve Bank offices and classified as under:
   
   Category A :Offices and branches maintaining independent foreign currency accounts in their own names.
   
   Category B :Offices and branches not maintaining independent foreign currency accounts but having powers of operating on the accounts maintained abroad by their Head/Principal Office or any other link office (The name of the latter office should also be indicated).
   
   Category C :All other offices and branches handling foreign exchange business through other offices or branches in category A or B (The name of the latter office should also be indicated).
2. While forwarding the above lists to Reserve Bank, the Head/Principal Office of authorised dealer should also enclose a summary
   Name and address of the authorised dealer:

   Name of Reserve Bank office Ahmedabad Bangalore etc. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Total -------------------------------------------------------------------------------- --------------------------------------------------------------------------------

   No. of branches under category A                               B                          C -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------------------------

3. Authorised dealers should promptly report to Reserve Bank, any change in the status (i.e. category) of their offices/branches included in the above lists. As and when a new office/branch is opened with powers to handle foreign exchange business or an existing office/branch is delisted, same should be advised promptly to Reserve Bank (both to the Central Office as well as the Regional Office of Reserve Bank having jurisdiction over the concerned authorised dealer's office/branch).
4. While designating and categorising offices/branches for undertaking foreign exchange business, authorised dealers should ensure that branches have adequate business and are fully equipped to handle foreign exchange business and to meet various requirements of Reserve Bank including timely submission of proper returns/statements. They should also undertake a review every year to ensure that the branches which do not satisfy the criteria are delisted/reclassified.

R Returns

16.6

1. Authorised dealers should report all transactions made by them through their Nostro Accounts abroad and Vostro Accounts maintained with them in appropriate R Return, i.e. R Return (NOSTRO) and R Return (VOSTRO) respectively, as laid down in the Guide to authorised dealers for compilation of R Returns (see Annexure at the end of the Chapter) twice a month, at the close of business on 15th and the last day of calendar month so as to reach Reserve Bank within seven calendar days from the close of reporting period to which they relate. If the 15th or the last day of the month is a holiday, the return should be submitted as at the close of business on the preceding working day.
2. Each office/branch of an authorised dealer in category A and B ( C category branches are not required to submit R Return) submitting R Returns to Reserve Bank should ensure that they use correct format of R Return as applicable to transactions and write in bold letters the currency name and currency code (SWIFT Code) on the relative R Return. Incomplete R Returns (i.e. where the required information, data, certification etc. are not furnished and/or any of the required enclosures are not properly completed and submitted), will be regarded as non-submission of the Return and will attract penal provisions of Section 73A of FERA 1973.

Earnings from Tourism

16.7    The Head/Principal Office of each authorised dealer should submit to the Chief General Manager, Exchange Control Department (Central Statistical Division), Reserve Bank of India,
Central Office, Mumbai 400 001, a quarterly statement in form STAT 6 giving details of all purchases, irrespective of the amount of the transaction, of foreign currency travellers cheques, notes and coins purchased by them from the public, as also payments made by them during the quarter against travellers letters of credit opened by their overseas branches/correspondents. The statement should be forwarded on or before 10th of the month following the quarter to which it relates.

16.8    Deleted

Other Periodic Statements

16.9    Authorised dealers are required to submit to Reserve Bank the following periodic statements in terms of instructions contained in various Chapters of the Manual