| Date: |
26-11-2002
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| Notification No: |
RBI A P D (Series)Circular No 55/2002
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
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| Subject: |
Clarifications - Foreign Currency Loans in India to Holders of FCNR (B) Deposits
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Clarifications - Foreign Currency Loans in India to Holders of FCNR (B)
Deposits
A.P
(DIR Series) Circular No. 55 dated 26th November 2002
Attention
of authorised dealers is invited to AP (DIR Series) Circular No. 24 dated
September 25, 2002 in terms of which they are permitted to grant foreign
currency loans in India against the security of funds held in FCNR (B) deposit
accounts to the account holders only, subject to the guidelines given in the
Annexure thereto.
2.
It is clarified that the prohibitions placed on grant of rupee loans
against NRE/ FCNR deposits for purpose of relending or carrying on agricultural/
plantation activities or for investment in real estate business shall also be
applicable, to foreign currency loans granted in terms of the above circular.
3.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
4.
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).
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