FOREIGN EXCHANGE MANAGEMENT (POSSESSION AND RETENTION OF FOREIGN
CURRENCY) REGULATIONS, 2000
Notification
No. 11 dated 3rd May 2000
GSR
394 (E), dated 3.5.2000: In exercise of the powers conferred by
clause (a) and clause (e) of section 9, clause (d) and clause (g) of sub-section
(2) of section 47 of the Foreign Management Act, 1999 (42 of 1999), the Reserve
Bank of India makes the following regulations, namely: -
(I)
These regulations may be called the Foreign Exchange Management
(Possession and Retention of Foreign Currency) Regulations, 2000.
(ii)
They shall come into force in 1st day of June 2000.
In
these regulations, unless the context requires otherwise, -
(I)
�Act � means Foreign Exchange Management Act, 1999 (42 of 1999);
(ii)
�To possess� or �to retain� means to possess or to retain in
physical form and the words �possession� or �retention� shall be
construed accordingly.
(iii)
The words and expressions used but not defined in these Regulations shall
have the same meaning respectively assigned to them in the Act.
For
the purpose of clause (a) and clause (e) of section 9 of
the Act, the Reserve Bank specifies the following limits for possession or
retention of foreign currency or foreign coins, namely: -
(i)
possession without limit of foreign currency and coins by an authorised
person within the scope of his authority;
(ii)
possession without limit of foreign coins by any person;
(iii)
retention by a person resident in India of foreign currency notes, bank
notes and foreign currency travellers� cheques not exceeding US $ 2000 or its
equivalent in aggregate, provided that such foreign exchange in the form of
currency notes, bank notes and travellers cheques;
(a)
was acquired by him while on a visit to any place outside India by way of
payment for services not arising from any business in or anything done in India;
OR
(b) was acquired by him, from any person
not resident in India and who is on a visit of India, as honorarium or gift or
for services rendered or in settlement of any lawful obligation; OR
(c) was acquired by him way of honorarium
or gift while on a visit to any place outside India; OR
(d)
represents unspent amount of foreign exchange acquired by him from an
authorised person for travel abroad.
Without
prejudice to clause (iv) of regulation 3, a person resident in India but not
permanently resident therein may posses without limit foreign currency in the
form of currency notes, bank notes and travellers cheques, if such foreign
currency was acquired, held or owned by him when he was resident outside India
and, has been brought into India in accordance with the regulations made under
the Act.
Explanation-
For the purpose of this clause, �not permanently resident � means a person
resident in India for employment of a specified duration (irrespective of
length thereof) or for a specific job or assignment, the duration of which
does not exceed three years.
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