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Clarifications Full Convertibility of Deposit Schemes � NRNR/ NRSR
Accounts
A.P.
(DIR Series) Circular No. 60 dated 10th December 2002
Attention
of authorised dealers is invited to A.P. (DIR Series) Circular No. 28 dated
March 4, 2002 and clarifications issued from time to time on the subject.
2.
Our clarifications to the queries from authorised
dealers on some of the operational aspects of the deposit schemes are as under:
(i)
Renewal of overdue NRNR deposits
As
the authorised dealers cannot accept fresh deposits by way of renewal or
otherwise under NRNR Scheme with effect from April 1, 2002, overdue NRNR
deposits should not be renewed. If the matured and overdue NRNR deposit receipts
are presented for renewal after April 1, 2002 the same may be credited to the
NRE accounts of the deposit holders on the date of presentation.
(ii)
Credit of matured NRNR deposits to NRE Account and thereafter to FCNR (B)
Account
The
maturity proceeds of NRNR deposits credited to NRE Account can subsequently be
transferred to FCNR (B) account in terms of paragraph 4(c) of Schedule 1 to RBI
Notification No.FEMA.5/2000-RB dated May 3, 2000.
(iii)
Repatriation of maturity proceeds of NRNR Accounts
If
the NRNR deposit holder does not hold NRE account, he may be allowed to
repatriate the maturity proceeds of the NRNR Deposit outside India.
(iv)
Credit of matured NRNR deposits to RFC Account
NRNR
deposits maturing on or after April 1, 2002 held by such NRNR deposit holders,
who have since become residents, may be credited to their RFC accounts.
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 FEMA, 1999 (42 of 1999).
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