| Date: |
24-09-2015
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| Notification No: |
RBI/2015-16/184 A.P. (DIR Series) Circular No.15
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2015-16/184 |
| Subject: |
Opening of foreign currency accounts in India by ship-manning / crew-management agencies
|
RBI/2015-16/184
A.P. (DIR Series) Circular No.15
September 24, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Opening of foreign currency accounts in India by ship-manning / crew-management
agencies
Attention of Authorised Dealer Category-I (AD Category - I) banks is invited to
Regulation 6 of Foreign Exchange Management (Foreign Currency Accounts by a
person resident in India) Regulations, 2000 notified vide
Notification No. FEMA
10/2000-RB dated May 3, 2000, as amended from time to time, and
A.P. (DIR
Series) Circular No. 48 dated April 30, 2007, in terms of which general
permission is available to ship-manning / crew managing agencies that are
rendering services to shipping/airline companies incorporated outside India, to
open, hold and maintain non-interest bearing foreign currency account with an AD
Category – I bank in India for meeting the local expenses in India of such
shipping or airline company.
- With a view to ensuring strict compliance, our guidelines on the
operations in such foreign currency accounts opened with AD Category-I banks by
foreign shipping or airline companies or their agents in India are reproduced
below:
Credits to such foreign currency accounts would be only by way of freight or
passage fare collections in India or inward remittances through normal banking
channels from the overseas principal. Debits will be towards various local
expenses in connection with the management of the ships / crew in the ordinary
course of business.
No credit facility (fund based or non-fund based) should be granted against
security of funds held in such accounts.
The bank should meet the prescribed ‘reserve requirements’ in respect of
balances in such accounts.
No EEFC facility should be allowed in respect of the remittances received in
these accounts.
These foreign currency accounts will be maintained only during the validity
period of the agreement.
- AD Category - I banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
- The directions contained in this Circular have been issued under Section 10
(4) and 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,
(A. K. Pandey)
Chief General Manager
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