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Foreign Exchange Management Act, 1999 - Returns and Statements
Circular No. 23 dated 30th
December 2000
Attention
of authorised dealers is invited to paragraph 3 of A.D. (M.A. Series) Circular
No. 11 dated May 16, 2000, advising them to be guided by the provisions of the
Exchange Control Manual (1993 edition) regarding matters listed in Annexure V of
the circular, pending issue of further instructions. Accordingly, submission of
�Returns and Statements� is guided by the provisions contained in Chapter 16
of the Manual.
2.
In terms of paragraph 15(x) of the �Guide to authorised dealers for
compilation of R Returns�, a Supplementary statement of receipts, for purposes
other than exports, involving amounts equivalent to Rs. 1,00,000 and above is
required to be submitted with the R Return. It has now been decided that the
cut-off limit of Rs. 1,00,000 be raised to US$10,000. Accordingly, the �Supplementary
Statement of non-export Receipts� to be enclosed with R Returns for the
fortnight ending January 15, 2001 onwards, may be submitted for receipts
equivalent to US$ 10,000 and above.
3.
Where the amount of inward remittance exceeds US$10,000 or its
equivalent, the purpose of remittance, i.e. whether it represents transfer of
capital, savings, gift, profit, dividend etc. should be ascertained and reported
in the supplementary statement. The payment should not be delayed for want of
this information, which may be obtained separately and furnished to the Reserve
Bank later.
4.
With a view to ensuring that credits to customers� accounts for
non-trade related inward remittances are given promptly, it has been decided
that Internal Auditors/ Inspectors of authorised dealers should certify that the
credits to beneficiaries� accounts in case of personal remittances from
outside India have been given promptly by the branch; and in accordance with the
prescribed rules and regulations.
5.
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). Any contravention or
non-observance of these directions is subject to the penalties prescribed under
the Act.
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