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RESERVE BANK OF INDIA
(EXCHANGE CONTROL DEPARTMENT)
CENTRAL OFFICE
MUMBAI
Notification No. FEMA 34 /2001-RB.
Dated: January 22, 2001
Foreign Exchange Management (Foreign Currency Accounts by a
Person Resident in India) (Amendment) Regulations, 2001
In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of 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 10/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, namely:-
1. Short title and commencement
- These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Third Amendment) Regulations, 2001.
- They shall come into force with immediate effect.
2. Amendment of Regulation 7
In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, in Regulation 7, after sub-regulation (7), the following sub-regulation shall be added, namely:-
'(8) A national of a foreign state resident in India being an employee of a foreign company on deputation to the office/branch/subsidiary/joint venture in India of such foreign company may open, hold and maintain a foreign currency account with a bank outside India and received the salary payable to him for the services rendered to the office/branch/subsidiary/joint venture in India of such foreign company, by credit to such account;
Provided that,
- the amount to be credited to such account shall not exceed 75 per cent of the salary accrued to or received by such person from the foreign company;
- the remaining salary shall be paid in rupees in India;
- Income tax chargeable under the Income Tax Act 1961 is paid on the entire salary as accrued in India.'
Sd/-
(D.P. Sarda)
Executive Director
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