RBI/2013-14/438
A. P. (DIR Series) Circular No. 88
January 09, 2014
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 Part (B) of Annex-I 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.
- With a view to expanding the scope of the Rupee Drawing Arrangements (RDAs),
it has been decided to include additional items under Permitted Transactions
under RDAs. The amended instructions under Part (B) of Annex-I to the above
mentioned circular are as given in the Annex.
- 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
Annex
[Annex-I to A.P.(DIR Series) Circular No.28
A.P.(FL/RL Series) Circular No.02]
Earlier guidelines under Part (B) Permitted Transactions of Annex-I
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Revised guidelines under Part (B) Permitted Transactions of Annex-I |
Drawing Arrangements with Exchange Houses are primarily designed to channel
inward personal remittances. Under no circumstances, donations / contributions
to charitable institutions should be routed through the Exchange Houses. The
following is the list of permissible transactions under Drawing Arrangements
with Exchange Houses. |
Drawing Arrangements with Exchange Houses are primarily designed to channel
inward personal remittances. Under no circumstances, donations / contributions
to charitable institutions should be routed through the Exchange Houses. The
following is the list of permissible transactions under Drawing Arrangements
with Exchange Houses. |
- Credit to Non-resident (External) Rupee accounts maintained by Non-resident
Indians in Indian Rupees.
- Payments to families of Non-resident Indians.
- Payments in favour of Insurance companies, Mutual Funds and the Post Master
for premia / investments.
- Payments in favour of bankers for investments in shares, debentures.
- Payment to Coop. Housing Societies, Govt. Housing Schemes or Estate
Developers for acquisition of residential flats in India in individual names
subject to compliance of regulations thereof by the Non-resident Indians.
- Payments of tuition/ boarding, examination fee etc. to schools, colleges and
other educational institutions.
- Payments to medical institutions and hospitals for medical treatment of NRIs
/ their dependents and nationals of Gulf Countries in India.
- Payments to hotels by nationals of Gulf countries / NRIs for their stay.
- Payments to travel agents for booking of passages of NRIs and their families
residing in India towards their travel in India by domestic airlines / rail,
etc.
- Trade transactions up to Rs. 2 lakhs per transaction.
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- Credit to Non-resident (External) Rupee accounts maintained by Non-resident
Indians in Indian Rupees.
- Payments to families of Non-resident Indians.
- Payments in favour of Insurance companies, Mutual Funds and the Post Master
for premia / investments.
- Payments in favour of bankers for investments in shares, debentures.
- Payment to Coop. Housing Societies, Govt. Housing Schemes or Estate
Developers for acquisition of residential flats in India in individual names
subject to compliance of regulations thereof by the Non-resident Indians.
- Payments of tuition/ boarding, examination fee etc. to schools, colleges and
other educational institutions.
- Payments to medical institutions and hospitals for medical treatment of NRIs
/ their dependents and nationals of Gulf Countries in India.
- Payments to hotels by nationals of Gulf countries / NRIs for their stay.
- Payments to travel agents for booking of passages of NRIs and their families
residing in India towards their travel in India by domestic airlines / rail,
etc.
- Trade transactions up to Rs. 2 lakhs per transaction.
- Payments to utility service providers in India, for services such as water
supply, electricity supply, telephone (except for mobile top-ups), internet,
television etc.
- Tax payments in India
- EMI payments in India to Banks and Non-Banking Financial Companies (NBFCs)
for repayment of loans.
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