Reserve Bank Of India
A. P. (DIR Series) Circular No. 85
February 28, 2013
To,
All Authorised Dealer Category - I Banks
Madam / Sir,
Memorandum of Instructions for Opening and Maintenance of Rupee / Foreign
Currency Vostro Accounts of Non-resident Exchange Houses
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited
to the
A.P. (DIR Series) Circular No. 28 [A. P. (FL/RL Series) Circular No. 02]
dated February 6, 2008 on the captioned subject, as amended from time to time.
- Under the extant Rupee Drawing Arrangements (RDAs), cross-border inward
remittances are received in India by AD Category-I banks through Exchange Houses
situated in Gulf countries, Hong Kong, Singapore and Malaysia (for Malaysia only
under Speed Remittance Procedure). With a view to extending the scope of the
said arrangement to certain other jurisdictions, it has been decided to extend
the RDAs only under the Speed Remittance Procedure to Exchange Houses situated
in all countries which are FATF compliant.
- Accordingly, items No. 7 and 8 under Part (B) Permitted Transactions of
Annex-I to the above mentioned circular have been modified and the said modified
items may be read as under:
7. Payments to medical institutions and hospitals in India, for medical
treatment of NRIs / their dependents and
nationals of all FATF countries.
8. Payments to hotels by nationals of all FATF compliant countries/ NRIs for
their stay.
- All other instructions issued vide A.P. (DIR Series) Circular No. 28 [A. P.
(FL/RL Series) Circular No. 02] dated February 6, 2008, as amended from time to
time will remain unchanged.
- AD Category - I banks may bring the contents of this circular to the notice
of their constituents concerned.
- 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) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager-In-Charge
RBI/2012-13/423