|
Introduction:
The legal framework for administration of foreign exchange
transactions in India is provided by the Foreign Exchange Management
Act, 1999. Under the Act, freedom has been granted for buying and
selling of foreign exchange for undertaking current account
transactions. The Government has issued Foreign Exchange Management
(Current Account Transactions) Rules,2000 which have been notified
vide Notifications GSR. 381(E) dated May 3, 2000, S.O. 301(E)
dated March 30, 2001 and GSR.608(E) dated September 13, 2004 as
amended from time to time. The last amendment to the G.S.R is vide
Notification No., G.S.R. No.412 (E) dated July 11,
2006.
Under the Foreign Exchange Management Act, 1999 (FEMA) [which
replaced FERA], which has come into force with effect from June 1,
2000, all transactions involving foreign exchange have been
classified either as Capital or Current Account transactions. All
transactions undertaken by a resident that do not alter his assets
or liabilities outside India are current account transactions. In
terms of Section 5 of the FEMA, persons resident in India are free
to buy or sell foreign exchange for any current account transaction
except for those transactions for which drawal of foreign exchange
has been prohibited by Central Government, vide its Notification
referred to above. A copy of the Notification is available in the
Official Gazette as well as an annexure to our Master Circular on
Miscellaneous Remittances available at our website www.mastercirculars.rbi.org.in.
These details are available on the Reserve Bank’s website as well
as with the authorised dealers and regional offices of the Foreign
Exchange Department of Reserve Bank. This FAQ attempts to answer all
such questions in simple language.
I. Guidelines on Travel Related Matters
1. Who is a resident?
A 'person resident in India' is defined in Section 2(v) of FEMA,
1999 as:
A person residing in India for more than one hundred and eighty-two
days during the course of the preceding financial year but does not
include –
(A) a person who has gone out of India or who stays outside India,
in either case -
for or on taking up employment outside India, or
for carrying on outside India a business or vocation outside India,
or
for any other purpose, in such circumstances as would indicate his
intention to stay outside India for an uncertain period;
(B) a person who has come to or stays in India, in either case,
otherwise than –
for or on taking up employment in India, or
for carrying on in India a business or vocation in India, or
for any other purpose, in such circumstances as would indicate his
intention to stay in India for an uncertain period;
any person or body corporate registered or incorporated in India,
an office, branch or agency in India owned or controlled by a person
resident outside India,
an office, branch or agency outside India owned or controlled by a
person resident in India;
That is to qualify as a resident the person concerned will
have to fulfill the criterion regarding (a) the duration of stay and
(b) the purpose of stay.
The term Person Resident Outside India is defined in
the Act as a person who is not a person resident in India.
2. From where one can buy foreign exchange?
Foreign exchange can be purchased from any authorised dealer.
Besides authorised dealers, full-fledged money changers are also
permitted to release exchange for business and private visits.
3. Who is an authorized dealer?
An
authorized dealer is normally a bank specifically authorized by the
Reserve Bank under Section 10(1) of FEMA,1999, to deal in foreign
exchange or foreign securities (List available on www.fedai.org.in
).
4. How much exchange is available for a business trip?
Authorized dealers can release foreign exchange up to USD 25,000 for
a business trip to any country other than Nepal and Bhutan. Release
of foreign exchange exceeding USD 25,000 for a travel abroad (other
than Nepal and Bhutan) for business purposes, irrespective of period
of stay, requires prior permission from Reserve Bank. Visits in
connection with attending of an international conference, seminar,
specialised training, study tour, apprentice training, etc., are
treated as business visits.
Incidentally, no release of foreign exchange is admissible
for any kind of travel to Nepal and Bhutan or for any transaction
with persons resident in Nepal and Bhutan.
5. Can one obtain additional foreign exchange for medical
treatment outside India?
Authorized dealers may release foreign exchange upto USD 100,000 or
its equivalent to resident Indians for medical treatment abroad on
self declaration basis of essential details, without insisting on
any estimate from a hospital/doctor in India/abroad. A person
visiting abroad for medical treatment can obtain foreign exchange
exceeding the above limit, provided the request is supported by an
estimate from a hospital/doctor in India/abroad. This release of
foreign exchange of USD 100,000 is to meet the expenses involved in
treatment and it is in addition to the amount of
USD 25,000 released for maintenance
expenses of a patient going abroad for medical treatment or
check-up abroad, or for accompanying as attendant
to a patient going abroad for medical treatment/check-up.
6. How much exchange is available for studies outside India?
Authorized dealers may release foreign exchange for an amount of USD
100,000 per academic year or the estimate received from the
institution abroad, whichever is higher. Students going abroad for
studies are treated as Non-Resident Indians (NRIs) and are eligible
for all the facilities available to NRIs under FEMA. In addition,
they can receive remittances up to USD 100,000 from close relatives
(as defined in Section 6 of the Companies Act,1956) from India on
self-declaration, towards maintenance, which could include
remittances towards their studies also. Educational and other loans
availed of by students as resident in India can be allowed to
continue. There is no dilution in the existing remittance facilities
to students in regard to their academic pursuits.
7. How much foreign exchange can one buy when traveling
abroad on private visits to a country outside India?
In connection with private visits abroad, viz., for tourism
purposes, etc., foreign exchange up to USD10,000, in any one
financial year may be obtained from an authorised dealer on a
self-declaration basis. The ceiling of USD10,000 is applicable in
aggregate and foreign exchange may be obtained for one or more than
one visit provided the aggregate foreign exchange availed of in one
financial year does not exceed the prescribed ceiling of USD10,000
{The facility was earlier called B.T.Q or F.T.S.}. This limit of
USD10,000 per financial year can be availed of by a person along
with foreign exchange for travel abroad for any purpose, including
for employment or immigration or studies. However, no foreign
exchange is available for visit to Nepal and/or Bhutan for any
purpose.
8. How much foreign exchange is available to a person going
abroad on employment?
Person going abroad for employment can draw foreign exchange up-to
USD100,000 from any authorised dealer in India on the basis of
self-declaration.
9. How much foreign exchange is available to a person going
abroad on emigration?
Person going abroad on emigration can draw foreign exchange upto
USD100,000 on self- declaration basis from an authorized dealer in
India. This amount is only to meet the incidental expenses in the
country of emigration. No amount of foreign exchange can be remitted
outside India to become eligible or for earning points or credits
for immigration. All such remittances require prior permission of
the Reserve Bank.
10. Is there any category of visit which requires prior
approval from the Reserve Bank or Govt. of India?
In case of dance troupes, artistes, etc., who wish to undertake
cultural tours abroad, they should obtain prior approval from the
Ministry of Human Resources Development, Government of India, New
Delhi.
11. How much foreign exchange can be purchased in foreign
currency notes while buying exchange for travel abroad?
Travellers are allowed to purchase foreign currency notes/coins only
up to USD 2000. Balance amount can be taken in the form of
travellers cheque or banker’s draft. Exceptions to this are (a)
travellers proceeding to Iraq and Libya can draw foreign exchange in
the form of foreign currency notes and coins not exceeding USD 5000
or its equivalent; (b) travellers proceeding to the Islamic Republic
of Iran, Russian Federation and other Republics of Commonwealth of
Independent States can draw entire foreign exchange in the form of
foreign currency notes or coins.
12. Do same Rules apply to persons going for studies abroad?
For the purpose of studies abroad, exchange for maintenance expenses
is released in the form of (i) currency notes up to USD 2,000, (ii)
the balance foreign exchange may be taken in the form of travellers
cheques or bank draft payable overseas.
13.
How much in advance one can buy foreign exchange for travel abroad?
The foreign exchange acquired for any purpose has to be used within
180 days of purchase. In case it is not possible to use the foreign
exchange within the period of 180 days, it should be surrendered to
an authorised person.
14. Can one pay by cash full rupee equivalent of foreign
exchange being purchased for travel abroad ?
Foreign exchange for travel abroad can be purchased from authorized person
against rupee payment in cash up to Rs.50,000/-. However, if the
rupee equivalent exceeds Rs.50,000/-, the entire payment should be
made by way of a crossed cheque/banker’s cheque/pay order/demand
draft only.
15. Is there any time frame for a traveller who has returned
to India to surrender foreign exchange?
On return from a foreign trip, travellers are required to surrender
unspent foreign exchange held in the form of currency notes and
travellers cheques within 180 days of return. However, they are free
to retain foreign exchange upto USD 2,000, in the form of foreign
currency notes or TCs for future use or credit to their RFC(Domestic)
Accounts without any limit.
16. On return to India can one retain foreign exchange?
Residents have the choice of either holding foreign currency up to
USD 2,000 or its equivalent or credit the amount to their
RFC(Domestic) Accounts provided the foreign exchange was acquired by
them:-
a. while on a visit abroad as payment for services not arising from
any business in or anything done in India; or
b. as honorarium or gift or for services rendered or in settlement
of any lawful obligation from any person who is not resident in
India and who is on a visit to India; or
c. as honorarium or gift while on a visit to any place outside
India; or
d. from an authorised person for travel abroad and represents the
unspent amount thereof.
17. Is one required to surrender foreign coins also to an
authorised dealer?
The residents can hold foreign coins without any limit.
18. How much foreign exchange can a resident individual send
as gift / donation to a person resident outside India?
Limit of USD 200,000 per financial year under the
Liberalised Remittance Scheme would also include remittances towards
gift and donation by a resident individual. Accordingly, under the
Scheme, any resident individual, if he so desires, may remit the
entire limit of USD 200,000 in one financial year as gift to a
person residing outside India or as donation to a
charitable/educational/ religious/cultural organization outside
India. Remittances exceeding the limit will require
prior permission from the Reserve Bank.
19. How much foreign exchange can residents other than
individuals send as gift / donation to a person resident outside
India?
ADs have been permitted to make remittances on account of donations
by corporates for some specified purposes subject to a limit of one
per cent of the foreign exchange earnings during the previous three
financial years or USD 5 million, whichever is less. Other residents
like partnership firms, trusts etc., are free to remit up to USD
5000 per annum per donor/remitter each as gift and donation.
Remittances exceeding the limit will require prior permission from
the Reserve Bank.
20. Is one permitted to use International Credit Card (ICC)
for undertaking foreign exchange transactions?
Use of the International Credit Cards (ICCs) / ATMs/ Debit Cards can
be made for making personal payments like subscription to foreign
journals, internet subscription, etc., and for travel abroad in
connection with various purposes. The entitlement of foreign
exchange on International Credit Cards (ICCs) is limited by the
credit limit fixed by the card issuing authority only. With ICCs one
can (i) meet expenses/make purchases while abroad (ii) make payments
in foreign exchange for purchase of books and other items through
internet in India. If the person has a foreign currency account in
India or with a bank overseas, he/she can even obtain ICCs of
overseas banks and reputed agencies.
Use of these instruments for payment in foreign exchange in Nepal
and Bhutan is not permitted.
21. While coming into India how much Indian currency can be
brought in?
A person coming into India from abroad can bring in with him Indian
currency notes within the limits given below:
a. up to Rs. 5,000 from any country other than Nepal or
Bhutan, and
b. any amount in denomination not exceeding Rs.100 from
Nepal or Bhutan.
22. While going abroad how much foreign exchange, in cash,
can a person carry?
A person is allowed to carry foreign exchange in the form of
currency notes/coins up to USD 2,000 or its equivalent only. Balance
amount as applicable can be carried in the form of travellers cheque
or banker/s draft. (In this connection please see item No.11).
23. While going abroad how much Indian currency, in cash,
can a person carry?
Residents are free to take outside India (other than to Nepal and
Bhutan) currency notes of Government of India and Reserve Bank of
India notes up to an amount not exceeding Rs. 5,000/ - per person.
They may take or send outside India (other than to Nepal and Bhutan)
commemorative coins not exceeding two coins each.
Explanation : 'Commemorative Coin' includes coin issued by
Government of India Mint to commemorate any specific occasion or
event and expressed in Indian currency.
A person can take or send out of India to Nepal or Bhutan, currency
notes of Government of India and Reserve Bank of India notes (other
than notes of denominations of above Rs. 100);
24.
While coming into India how much foreign exchange can be brought in?
A person coming into India from abroad can bring with him foreign
exchange without any limit. However, if the aggregate value of the
foreign exchange in the form of currency notes, bank notes or
travellers cheques brought in exceeds USD 10,000/- or its equivalent
and/or the value of foreign currency exceeds USD 5,000/- or its
equivalent, it should be declared to the Customs Authorities at the
Airport in the Currency Declaration Form (CDF), on arrival in India.
25. Is one required to follow complete export procedure when
a gift parcel is sent outside India?
A person resident in India is free to send (export) any gift article
of value not exceeding Rs. 5,00,000 provided export of that item is
not prohibited under the extant Foreign Trade Policy and exporter
submits a declaration that goods of gift are not more than Rs.
5,00,000 in value.
26. How much jewellery one can carry while going abroad?
Taking personal jewellery out of India is governed by Baggage Rules
framed under Foreign Trade Policy by the Government of India. No
approval of Reserve Bank is required in this case.
27. Can a resident extend local hospitality to a
non-resident?
A person resident in India is free to make any payment in Indian
Rupees towards meeting expenses on account of boarding, lodging and
services related thereto or travel to and from and within India of a
person resident outside India who is on a visit to India.
28. Can residents purchase air tickets in India for their
travel not touching India?
Residents may book their tickets in India for their visit to any
third country. That is, residents can book their tickets for travel,
for instance from London to New York, through domestic/foreign
airlines in India itself.
29. Can a resident open a foreign currency denominated
account in India?
Persons resident in India are permitted to maintain foreign currency
accounts in India under the following three Schemes:
a. Exchange Earners Foreign Currency Accounts:-
All categories of resident foreign exchange earners can credit
up to 100 per cent of their foreign exchange earnings, as specified
in the paragraph 1 (A) of the Schedule to Notification
No.FEMA.10/2000-RB dated 3rd May, 2000 and as amended from time to
time, to their EEFC Account with an authorised dealer in India.
Funds held in EEFC account can be utilised for all permissible
current account transactions and also for approved capital account
transactions as specified by the extant Rules/Regulations/
Notifications/ Directives issued by the Government/RBI from time to
time. EEFC account holders can now maintain outstanding balances to
the extent of USD 1 million in the form of term deposits up to one
year maturing on or before 31st October 2008. The rate of interest
will be determined by the banks themselves.
b. Resident Foreign Currency Accounts:-
Returning Indians, i.e., those Indians, who were non-residents
earlier, and are returning now for permanent stay in India, are
permitted to open, hold and maintain with an authorised dealer in
India a Resident Foreign Currency (RFC) Account to keep their
foreign currency assets. Assets held outside India at the time of
return can be credited to such accounts. The foreign exchange (i)
received or acquired as gift or inheritance from a person referred
to sub-section (4) of section 6 of FEMA,1999 or (ii) referred to in
clause (c) of section 9 of the Act or acquired as gift or
inheritance therefrom or (iii) received as the proceeds of life
insurance policy claims/maturity/ surrender values settled in
foreign currency from an insurance company in India permitted to
undertake life insurance business by the Insurance Regulatory and
Development Authority may also be credited to this account.
The funds in RFC account are free from all restrictions regarding
utilisation of foreign currency balances including any restriction
on investment outside India.
c. Resident Foreign Currency (Domestic)
Account:-
A person resident in India can open, hold and maintain with an
authorized dealer in India, a Resident Foreign Currency (Domestic)
Account, out of foreign exchange acquired in the form of currency
notes, Bank notes and travellers cheques from any of the sources
like, payment for services rendered abroad, as honorarium, gift,
services rendered or in settlement of any lawful obligation from any
person not resident in India. The account may also be credited
with/opened out of foreign exchange earned like proceeds of export
of goods and/or services, royalty, honorarium, etc., and/or gifts
received from close relatives (as defined in the Companies Act) and
repatriated to India through normal banking channels. The account
shall be maintained in the form of Current Account and shall not
bear any interest. There is no ceiling on the balances in the
account.
30. Can a person resident in India hold assets outside
India?
In terms of sub-section 4, of Section (6) of the Foreign Exchange
Management Act, 1999, a person resident in India is free to hold,
own, transfer or invest in foreign currency, foreign security or any
immovable property situated outside India if such currency, security
or property was acquired, held or owned by such person when he was
resident outside India or inherited from a person who was resident
outside India. (Please also refer to the Liberalised Remittance
Scheme of USD 200,000 discussed below).
II. Liberalised Remittance Scheme of USD 200,000.
31. What is the Liberalised Remittance Scheme of USD
200,000?
This is a facility extended to all resident individuals under which,
they may freely remit upto USD 200,000 per financial
year for any permissible current or capital account transaction or a
combination of both.
32. What are the purpose/s for which remittance can be made
under the Scheme?
This facility is available for making remittance/s for any
permissible current or capital account transaction or a combination
of both. It is not available for purposes specifically prohibited
(Schedule I) or regulated by the Government of India (Schedule II)
of Foreign Exchange Management (Current Account Transactions) Rules,
2000.
33. Who is eligible to avail of this Liberalised Remittance
Facility?
The facility is available to resident individuals only.
34.
Provide an illustrative list of capital account transactions
permitted under the scheme?
The remittance under the Scheme is available to the resident
individuals for any permitted current or capital account
transactions or a combination of both. Under the Scheme, resident
individuals can acquire and hold immovable property or shares or
debt instruments or any other assets outside India, without prior
approval of the Reserve Bank. Individuals can also open, maintain
and hold foreign currency accounts with banks outside India.
However, it is clarified that remittance from India for margins or
margin calls to overseas exchanges / overseas counterparty are not
allowed under the Scheme.
The remittance facility under the Scheme is also not available for
the following:
i) Remittance for any purpose specifically prohibited under
Schedule-I (like purchase of lottery/sweep stakes, tickets,
proscribed magazines, etc.) or any item restricted under Schedule II
of Foreign Exchange Management (Current Account Transactions) Rules,
2000.
ii) Remittances made directly or indirectly to Bhutan, Nepal,
Mauritius or Pakistan.
iii) Remittances made directly or indirectly to countries identified
by the Financial Action Task Force (FATF) as “non co-operative
countries and territories” from time to time.
iv) Remittances directly or indirectly to those individuals and
entities identified as posing significant risk of committing acts of
terrorism as advised separately by the Reserve Bank to the banks.
35. Whether this facility is in addition to existing facilities
detailed in Schedule III under remittances?
The facility under the Scheme is in addition to
those already available for private travel, business travel,
studies, medical treatment, etc., as described in Schedule III of
Foreign Exchange Management (Current Account Transactions) Rules,
2000. The Scheme can also be used for these purposes. However, gift
and donation remittances cannot be made separately and have to be
made under the Scheme only. Accordingly, resident individuals can
remit gifts and donations up to USD 200,000 per financial year under
the Scheme.
36. Whether resident individuals under this Scheme have to
repatriate the accrued yield on deposits/investments abroad, over
and above the principal amount?
The investor can retain and reinvest the income earned on
investments made under the Scheme. Currently, the residents are not
required to repatriate the funds or income generated out of
investments made under the Scheme.
37. Whether remittance under the Scheme is on gross basis or
net basis (net of repatriation from abroad)?
Remittance under this scheme is on a gross basis.
38. Whether minors can also avail of the remittance
facility?
The facility is available to all the resident individuals including
minors.
39.
Whether remittances under the facility can be consolidated in
respect of family members?
Remittances under the facility can be consolidated in respect of
family members subject to the individual family members complying
with the terms and conditions of the Scheme.
40. Whether the Scheme can be used for purchase of objects
of art (paintings, etc.,) either directly or through auction house?
Remittances under the Scheme can be used for purchasing objects of
art subject to the provisions of other applicable laws such as the
extant Foreign Trade Policy of the Government of India.
41. Whether small value remittance of USD 5000/- (gifts,
donation, etc.,) is in addition to LRS of USD 200,000?
Remittance against gifts and donations cannot be made separately and
have to be made under the Scheme only and therefore, no separate
limits for gift and donation are available
42. Whether the AD is required to check permissibility of
remittances based on nature of transaction or allow the same based
on remitters declaration?
AD will be guided by the nature of transaction as declared by the
remitter and will certify that the remittance is in conformity with
the instructions issued by Reserve Bank.
43.Whether under this scheme a customer can remit funds for
acquisition of ESOPs?
The Scheme can also be used for remittance of funds for acquisition
of ESOPs.
44. Whether the scheme is in addition to acquisition of
ESOPs linked to ADR/GDR (i.e USD 50,000/- for a block of 5 calendar
years)?
The remittance under the Scheme is in addition to acquisition of
ESOPs linked to ADR/GDR.
45. Whether the Scheme is in addition to acquisition of
qualification shares (i.e USD 20,000/- or 1% of paid up capital of
overseas company whichever is lower)?
The remittance under the Scheme is in addition to acquisition of
qualification shares.
46. Whether a resident individual can invest in units of
Mutual Funds, Venture Funds, unrated debt securities, promissory
notes, etc., under this scheme?
A resident individual can invest in units of Mutual Funds, Venture
Funds, unrated debt securities, promissory notes, etc under this
Scheme. Further, the resident can invest in such securities out of
the bank account opened abroad under the Scheme.
47. Whether an individual, who has availed of a loan abroad
while a non-resident can repay the same on return to India, under
this Scheme as a resident?
This is permissible.
48.
Whether it is mandatory for resident individuals to have PAN number
for sending outward remittances under the Scheme?
It is mandatory to have PAN number to make remittances under the
Scheme.
49. In case a resident individual requests for an outward
remittance by way of issuance of a demand draft (either in his own
name or in the name of the beneficiary with whom he intends putting
through the permissible transactions) at the time of his private
visit abroad, whether against self declaration of the remitter such
an outward remittance can be effected?
Such outward remittance in the form of a DD can be effected against
the declaration by the resident individual in the format prescribed
under the Scheme.
50. Is there any frequency for the remittance?
There is no restriction on the frequency. However, the total amount
of foreign exchange purchased from or remitted through, all sources
in India during a financial year should be within the limit of USD
200,000/-.
51. Can residents avail of this facility for acquiring
immovable property and other assets abroad?
Yes. Individuals are free to use this Scheme to acquire and hold
immovable property, shares or any other asset outside India without
prior approval of Reserve Bank.
52.
Can individuals open foreign currency account abroad for making
remittance under the Scheme?
Yes. Individuals are free to open, hold and maintain foreign
currency accounts with a bank outside India for making remittances
under the Scheme without the prior approval of Reserve Bank. The
account can be used for putting through any transaction connected
with or arising from remittances under the Scheme.
53. What are the requirements to be complied with by the
remitter?
The individual will have to designate a branch of an AD through
which all the remittances under the Scheme will be made.The
applicants should have maintained the bank account with the bank for
a minimum period of one year prior to the remittance. If the
applicant seeking to make the remittance is a new customer of the
bank, Authorised Dealers should carry out due diligence on the
opening, operation and maintenance of the account. Further the AD
should obtain bank statement for the previous year from the
applicant to satisfy themselves regarding the source of funds. If
such a bank statement is not available, copies of the latest Income
Tax Assessment Order or Return filed by the applicant may be
obtained. He has to furnish an application-cum-declaration in
the specified format regarding the purpose of the remittance and
declare that the funds belong to him and will not be used for
purposes prohibited or regulated under the Scheme.
54. Can an individual, who has repatriated the amount
remitted during the financial year, avail of the facility once
again?
Once a remittance is made for an amount upto USD 200,000 during the financial
year, he would not be eligible to make any further
remittances under this route, even if the proceeds of the
investments have been brought back into the country.
55. Can remittances be made only in US Dollars?
The remittances can be made in any currency equivalent to USD
200,000 in a financial year.
56. In the past resident individuals could invest in
overseas companies listed on a recognised stock exchange abroad and
which has the shareholding of at least 10 per cent in an Indian
company listed on a recognised stock exchange in India. Does
this condition still exist?
Investment by resident individual in overseas companies is subsumed
under the Scheme of USD 200,000. The requirement of 10 per cent
reciprocal shareholding in the listed Indian companies by such
overseas companies has since been dispensed with.
III. Guidelines for Financial Intermediaries offering
special schemes, protection under the Scheme.
57. Are intermediaries expected to seek specific approval
for making overseas investments available to clients?
Banks including those not having operational presence in India are
required to obtain prior approval from Reserve Bank for soliciting
deposits for their foreign/overseas branches or for acting as agents
for overseas mutual funds or any other foreign financial services
company.
58. Are there any restrictions on the kind/quality of debt
or equity instruments an individual can invest in?
No ratings or guidelines have been prescribed under the Liberalised
Remittance Scheme of USD 200,000 on the quality of the investment an
individual can make. However, the individual investor is expected to
exercise due diligence while taking a decision regarding the
investments which he or she proposes to make.
59. Whether credit facilities in Indian Rupees or foreign
currency would be permissible against security of such deposits?
No. The Scheme does not envisage extension of credit facility
against the security of the deposits.
60. Can bankers open foreign currency accounts in India for
residents under the Scheme?
No. Banks in India cannot open foreign currency accounts in India
for residents under the Scheme.
61. Can an Offshore Banking Unit (OBU) in India be treated
on par with a branch of the bank outside India for the purpose of
opening of foreign currency accounts by residents under the Scheme?
No. For the purpose of the Scheme, an OBU in India is not treated as
an overseas branch of a bank in India.
General Information
For further details/guidance, please approach any bank authorised to
deal in foreign exchange or contact Regional Offices of the Foreign
Exchange Department of the Reserve Bank.
|
