Notification No.FEMA.117/2004-RB May 25, 2004

Foreign Exchange Management (Borrowing and Lending in Rupees) (Second Amendment) Regulations, 2004

In exercise of the powers conferred by clause (e) of Sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No.FEMA.4/2000-RB, dated May 3, 2000, the Reserve Bank of India makes the following Regulation to amend the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, namely:

(i)These regulations may be called the Foreign Exchange Management (Borrowing and Lending in Rupees) (Second Amendment) Regulations, 2004.

(ii) They shall come into on the 25^th day of May 2004.

In the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, in Regulation 8, in Sub-regulation (d), after the words 'utilization of the loan', the following shall be added, namely :

'or by any relative of the borrower in India by crediting the borrower's loan account through the bank account of such relative.

Explanation: The word ' relative' means 'relative' as defined in Section 6 of the Companies Act, 1956'.

Sd/-

Foot Note: The Principal Regulations were published in the Official Gazette vide G.S.R.No.387(E) dated May 5, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide G.S.R.No.90 dated February 12, 2001 and 754(E) dated November 11, 2002 and 351(E) dated June 8, 2004.