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RBI/2014-15/596
A.P. (DIR Series) Circular No. 98
May 14, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Foreign Currency (Non-Resident) Account (Banks) (FCNR
(B)) Scheme
Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to
Schedule 2 of the Foreign Exchange Management (Deposit) Regulations, 2000,
notified vide
Notification No. FEMA 5/2000-RB dated May 3, 2000, as amended from
time to time, in terms of which instructions regarding opening and maintenance
of FCNR (B) deposit have been stipulated.
2. It has come to our notice that Authorised Dealer banks are insisting on
different requirements at the time of closure of FCNR (B) deposits and
subsequent remittance of funds as under:
- Submission of A2 form
- Insisting on physical presence of the account holder
- Asking for purpose of remittance
3. In this connection it is clarified that A2 form is to be filed at the time
of purchase of foreign exchange using rupee funds and hence is not applicable
while remitting FCNR (B) funds. Further, banks, with the help of technology,
will have to devise better alternatives/ methods for ensuring bonafides of the
transaction rather than insisting on physical presence of the account holder, in
order to ensure hassle free remittance of funds to the account holder.
4. AD Category- I banks may bring the contents of the circular to the notice
of their constituents concerned.
5. 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,
(A. K. Pandey)
Chief General Manager
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