RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI-400 001
Notification No.FEMA.10A/2014-RB
Dated : March 21, 2014
Foreign Exchange Management (Crystallization of Inoperative Foreign
Currency Deposits) Regulations, 2014.
In exercise of the powers conferred by clause (f) of sub-section (3) of
section 6, sub-section (b) of Section 9 and sub-section (2) of section 47 of the
Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes the
following regulations relating to inoperative foreign currency deposits,
namely:-
1. Short title and commencement:-
- These regulations may be called the Foreign Exchange Management (Crystallization
of Inoperative Foreign Currency Deposits) Regulations, 2014.
- They shall come into force from the date of their publication in the Official
Gazette.
2. Definitions:-
- In these Regulations unless the context otherwise requires, -
- ‘Act’ means the Foreign Exchange Management Act, 1999 (42 of 1999);
- ‘Authorised Bank' means a bank including a co-operative bank (other than an
authorised dealer) authorised by the Reserve Bank to maintain an account of a
person resident outside India;
- ‘Authorised Dealer' means a person authorised as an authorised dealer under
sub-section (1) of section 10 of the Act;
- ‘Crystallisation’ means conversion of credit balances in any inoperative foreign
currency denominated deposit to Indian Rupee.
- ‘Deposit' means and includes account balances or deposit of money with an
Authorised bank.
3. Crystallisation of inoperative foreign currency deposits -
- 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.
- 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.
(Rudra Narayan Kar)
Chief General Manager-in-Charge
Published in the Official Gazette of Government
of India – Extraordinary – Part-II, Section 3,
Sub-Section (i) dated 07.04.2014- G.S.R.No.271 (E)