(1)

An authorised dealer in India may accept deposit

i)

under the Non-Resident (External) Account Scheme(NRE account), specified in Schedule 1 , from a non-resident Indian [***]⁵

ii)

under the Foreign Currency (Non-Resident) Account Banks Scheme,(FCNR-B account), specified in Schedule 2, from a non-resident Indian [***]⁵

iii)

under the Non-Resident (Ordinary) Account Scheme, (NRO account), specified in Schedule 3, from any person resident outside India;

iv)

[***]⁵

v)

[***]⁵

(2)⁵

Without prejudice to sub-regulation (1), deposits under NRE, NRO and NRSR Account Schemes referred to in  [clauses (i), and  (iii)]   of that sub-regulation, may also be accepted by an authorised bank, in accordance with the provisions contained in the respective Schedules.  

(2A)⁵

Non-resident acquirers may, subject to the terms and conditions specified in Schedule 8, open, hold and maintain Escrow Account and Special Account with Authorised Dealers in India without prior approval of the Reserve Bank, for acquisition / transfer of shares / convertible debentures through open offers / delisting / exit offers, subject to the relevant Security Exchange Board of India (SAST) Regulations or any other applicable Security Exchange Board of India Regulations / provisions of the Companies Act, 1956.'

⁵(3)

(a)

On and from 1^st April 2002,  

i)

no deposit, whether by way of renewal of existing deposit or otherwise, shall be accepted under the Non-Resident (Non-Repatriable) Rupee Account Scheme (NRNR Account) or the Non-Resident (Special) Rupee Account Scheme (NRSR Account);

existing deposits under the NRNR Account Scheme may be continued only upto the date of maturity;

on maturity of the existing deposit under the NRNR Account Scheme, the maturity proceeds shall be credited to the accountholder’s Non-Resident (External) Account (NRE Account), after giving notice to the account holder.

the existing account in the form of a term deposit of the NRSR Account Scheme may be continued till the date of maturity.

on maturity of the existing term deposit under the NRSR Account Scheme, the maturity proceeds shall be credited to the accountholder’s Non-Resident (Ordinary) Account (NRO Account).

iii)

existing NRSR account, other than a term deposit, shall not be continued after 30th September 2002 and may at the option of the account holder, be closed or the balance therein credited to his NRO account on or before that date.

Explanation -  for the purpose of this sub-regulation, "existing deposit", or "existing account" means a deposit or an account held on 31st March, 2002.

Other deposits made or held by authorised dealer.

A deposit made by an authorised dealer with his branch, head office or correspondent outside India, and a deposit made by a branch or correspondent outside India of an authorised dealer, and held in his books in India, shall be governed by the directions issued by the Reserve Bank in this regard from time to time.

⁷

⁷

⁷

1)

Subject to compliance with the conditions in regard to raising of external commercial borrowings or raising of resources through American Depository Receipts (ADRs) or Global Depository Receipts (GDRs), the funds so raised may, pending their utilisation or repatriation to India, be held in deposits in foreign currency accounts with a bank outside India.

2)

Deposits accepted by an Indian company by issue of Commercial Paper to a Non-Resident Indian ⁸ [or a Foreign Institutional Investor registered with the Securities and Exchange Board of India] [***]⁸ shall be subject to the following conditions, namely:

a)

the issue is in due compliance with the Non-Banking Companies (Acceptance of Deposits through Commercial Paper) Directions, 1989 issued by the Reserve Bank as also any other law, rule, directions, orders issued by the Government or any other regulatory authority, in regard to acceptance of deposits by issue of Commercial Paper;

b)

payment for issue of Commercial Paper is received by the issuing company by inward remittance from outside India through normal banking channels or out of funds held in a deposit account maintained by a Non-Resident Indian [***]⁸ in accordance with the Regulations made by Reserve Bank in that regard;

c)

the amount invested in Commercial Paper shall not be eligible for repatriation outside India; and

d)

the Commercial Paper shall not be transferable.

With the prior approval of Reserve Bank, an authorised dealer may open an account expressed in foreign currency in the name  of a person resident outside India for the purpose of adjustment of value of goods imported into India against the value of goods exported from India in terms of an arrangement voluntarily entered into by such person with a person resident in India.

Authorised dealers may provide nomination facility in respect of the following deposit accounts:

a)

accounts maintained by individual account holders under the NRE, FCNR(B), NRO, NRNR and NRSR Account Schemes; and

b)

accounts maintained by diplomatic personnel under sub-regulations (1),(2) and (3) of Regulation 4.