RBI/2006-2007/314
A. P. (DIR Series) Circular No. 38

April 05, 2007

To,

All Authorised Dealer Banks

Madam / Sir,

Foreign Exchange Management Act (FEMA), 1999 Current Account Transaction Rules - Amendment

1. Attention of Authorised Dealer (AD) banks is invited to Foreign Exchange Management (Current Account Transactions) Rules, 2000 notified vide Notification No. G.S.R. 381(E) dated 3rd May 2000, as amended from time to time (the Rules).
2. Government of India has made certain amendments to the Rules vide Notification G.S.R. 512(E) dated July 28, 2005, a copy of which is annexed.
3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
4. The directions contained in this Circular have been issued under Section 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,
(Salim Gangadharan)
Chief General Manager-in-Charge

Annex

GAZETTE OF INDIA EXTRAORDINARY

PART II -- Section 3 -- Sub-section (i)

PUBLISHED BY AUTHORITY

MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION
New Delhi, the 27th July 2005

G.S.R.512(E).-- In exercise of the powers conferred by Sub-section (1) and clause (a) of Sub-section (2) of Sub-Section (2) of Section 46 read with Section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government, hereby makes the following amendments in the Foreign Exchange Management (Current Account Transactions) Rules, 2000, namely :--

1. 1. These rules may be called the Foreign Exchange Management (Current Account Transactions) Amendment Rules, 2005.
   2. They shall come into force from the date of their publication in the Official Gazette.
2. In the Foreign Exchange Management (Current Account Transactions) Rules, 2000,
   1. in Schedule I, brackets, words and figures '(see Rule 3)' the following words, brackets and figure shall be substituted, namely :-- 'Transactions which are Prohibited (see rule 3)',
   2. in Schedule II, for the brackets, words and figure '(see Rule 4)', the following words, brackets and figure shall be substituted, namely:-- 'Transactions which require prior approval of the Central Government (see Rule 4)'.

[No.F.1/2/FM/01]

( U.K. SIHNA )
Joint Secretary

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3(i) vide Number G.S.R.381(E), dated the 3rd May, 2000 and subsequently amended last vide G.S.R.608(E) dated 13th September, 2004.