| Date: |
28-05-2014
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| Notification No: |
RBI/2013-14/616 A.P. (DIR Series) Circular No.136
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2013-14/616 |
| Subject: |
Crystallization of Inoperative Foreign Currency Deposits
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RBI/2013-14/616
A.P. (DIR Series) Circular No.136
May 28, 2014
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Crystallization of Inoperative Foreign Currency Deposits
The Reserve Bank of India, in exercise of the powers conferred by
subsections (1) and (5) of Section 26(A) of the Banking Regulation Act, 1949 (10
of 1949) has formulated the Reserve Bank (Depositor Education and Awareness
Fund) Scheme, 2014. This Fund will be credited with the credit balances of any
account in India with a banking company which has not been operated for a period
of ten years or any deposit or any amount remaining unclaimed for more than ten
years within a period of three months from the expiry of ten years.
- With the objective of aligning the instructions in respect of foreign
currency accounts with the above scheme, Reserve Bank of India has issued
Foreign Exchange Management (Crystallization of Inoperative Foreign Currency
Deposits) Regulations, 2014 vide
Notification No. FEMA 10A/2014-RB dated
March 21, 2014 under Foreign Exchange Management Act (FEMA), 1999 relating
to inoperative foreign currency deposits.
- Accordingly, Authorised Dealer banks shall crystallise, that is, convert
the credit balances in any inoperative foreign currency denominated deposit
into Indian Rupee, in the manner indicated below:
(i) In case a foreign currency denominated deposit with a fixed maturity
date remains inoperative for a period of three years from the date of
maturity of the deposit, at the end of the third year, the authorised bank
shall convert the balances lying in the foreign currency denominated deposit
into Indian Rupee at the exchange rate prevailing as on that date.
Thereafter, the depositor shall be entitled to claim either the said Indian
Rupee proceeds and interest thereon, if any, or the foreign currency
equivalent (calculated at the rate prevalent as on the date of payment) of
the Indian Rupee proceeds of the original deposit and interest, if any, on
such Indian Rupee proceeds.
(ii) In case of foreign currency denominated deposit with no fixed maturity
period, if the deposit remains inoperative for a period of three years
(debit of bank charges not to be reckoned as operation), the authorised bank
shall, after giving a three month notice to the depositor at his last known
address as available with it, convert the deposit from the foreign currency
in which it is denominated to Indian Rupee at the end of the notice period
at the prevailing exchange rate. Thereafter, the depositor shall be entitled
to claim either the said Indian Rupee proceeds and interest thereon, if any,
or the foreign currency equivalent (calculated at the rate prevalent as on
the date of payment) of the Indian Rupee proceeds of the original deposit
and interest, if any, on such Indian Rupee proceeds.
- AD Category- I banks may bring the contents of the circular to the notice
of their constituents concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)
and is without prejudice to permissions / approvals, if any, required under
any other law.
Yours faithfully
Rudra Narayan Kar
Chief General Manager-in-Charge
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