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International Seminar/ Conference/ Convention etc. in India - Temporary
Foreign Currency Accounts
A.P.
(DIR Series) Circular No. 87 dated 20th March 2003
Attention
of authorised dealers is invited to Notification No. FEMA 10/ 2000-RB dated 3rd
May 2000 viz. the Foreign Exchange Management (Foreign Currency Accounts by
person resident in India) regulation 2000. Authorised Dealers are also aware
that opening of temporary Foreign Currency Accounts in India is permitted by
Reserve Bank on case-to-case basis.
2.
Reserve Bank has been receiving applications for opening temporary
foreign currency accounts from organisers of international Seminars,
Conferences, Conventions etc. for holding such events in India. These accounts
are operated for the receipt of the delegate fees and payment towards expenses
including payment to special invitees from abroad.
3.
With a view to facilitate expeditious disposal of such applications, it
has been decided that authorised dealers may, henceforth, consider such
requests, subject to the organisers obtaining the prior approval from the
concerned Administrative Ministry of Government of India for the conduct of the
relevant event, including invitation to foreign participants/ speakers/ faculty.
4.
The facility would be subject to the following conditions: -
A.
CREDITS:
All
inward remittances in foreign currency towards registration fees payable by
overseas delegates, grant, sponsorship fees and donations, received from abroad,
in connection with the conference, convention, etc.
B. DEBITS:
i.
Payment to foreign/special invitees attending the conference, etc., on
the specific invitation of the organisers, towards travel, hotel charges, etc.,
and honorarium to foreign guest speakers.
ii. Remittance towards refund of registration fees to
foreign delegates and unutilised sponsorship/grant amount, if any.
iii.
Bank charges, if any.
iv.
Conversion of funds into rupees.
C.
All other credits/ debits would require the prior approval of Reserve
Bank of India.
D.
The account should be closed immediately, after the conference/event is
over.
5.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
6.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999).
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