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Receipt from and payment to, a person resident outside India
Notification
No. 16 dated 3rd May 2000
G.S.R.
403 (E), dated 3.5.2000- In pursuance of the provisions of section 3 of
the Foreign exchange Management Act, 1999 (42 of 1999), the Reserve Bank is
pleased to permit-
(1)
any person, to receive any payment-
(a)
made in rupees by order or on behalf of a person resident outside India
during his stay in India out of rupee funds provided by him by sale of foreign
exchange to an authorised dealer or a money changer in India;
(b)
made by means of a cheque drawn on a bank situated outside India or a
bank draft or travellers cheque issued outside India;
(c) made in foreign currency notes directly
from out of India;
subject
to the condition that the foreign exchange received pursuant to clauses (b) and
(c) shall be offered for sale or caused to be offered for sale to an authorised
dealer or an money changer within seven days of receipt thereof;
(d)
by means of postal order issued by a post office outside India or by a
postal money order issued by such post office;
(2)
a person resident in India, to make any payment in rupees-
(i)
towards meeting expenses on account of boarding, lodging an services
related thereto or travel to and from and within India of a person resident
outside India who is on a visit to India;
(ii)
to a person resident outside India, by means of a crossed cheque or a
draft as consideration for purchase of gold or silver in any form imported by
such person in accordance with the terms and conditions imposed under any order
issued by the Central Government under the Foreign Trade (Development and
Regulation) Act, 1992 or under any other law, rules or regulations for the time
being in force;
(3)
a company in or resident in India, to make payment in rupees to its whole
time director who is resident outside India and is on a visit to India for the
company�s work and is entitled to payment of sitting fees or commission or
remuneration, and travel expenses to and
from and within India, in accordance with the provisions contained in the
company�s Memorandum of Association or Articles of Association or in any
agreement entered into by it or in any resolution passed by the company in
general meeting or by its Boards of Directors, provided the requirements of any
law , rules, regulations, directions applicable for making such payments are
duly complied with.
They
shall come into effect on the 1st day of June, 2000.
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