RBI/2004-05/59
A.P.(DIR Series) Circular No.6
July 20, 2004
To
All Authorised Dealers in Foreign
Exchange
Madam/Sirs,
Foreign Exchange Management (Foreign
Currency Accounts by a Person Resident in India) (First Amendment) Regulations,
2004
Attention of Authorised Dealers
is invited to the 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. In terms of Regulations 5 and 5A of
the Notification ibid, eligible entities in India may open, hold and maintain
Resident Foreign Currency (RFC) Account and Resident Foreign Currency (Domestic)
[RFC(D)] Account with an authorised dealer out of foreign exchange received
by them in respect of transactions specified therein.
2. On a review, it has been
decided that the foreign exchange received by a resident individual by way of
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 be credited to RFC Account or RFC (Domestic) Account of the beneficiary
as the case may be.
3. The requisite amendments
to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident
in India) Regulations, 2000 have been issued by Reserve Bank vide Notification
No.FEMA.109/2004-RB dated January 1, 2004, a copy of which is enclosed.
4. Authorised Dealers may bring
the contents of this circular to the notice of their constituents/customers
concerned.
5. The directions contained
in this circular have been issued under Sections 10(4) and 11(1) of the Foreign
Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
F.R.Joseph
Chief General Manager
RESERVE BANK OF INDIA
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
Notification No.FEMA.109/2004-RB
Dated: January 1, 2004
Foreign Exchange Management (Foreign
Currency Accounts by a Person Resident in India) (First Amendment) Regulations,
2004
In exercise of the powers conferred
by clause (b) of Section (9) and clause (e) of sub-section (2) of Section 47
of the Foreign Exchange Management Act, 1999 (Act 42 of 1999) and in partial
modification of its Notification
No.FEMA.10/2000-RB dated May 3, 2000, as amended from time to time, the
Reserve Bank of India makes the following amendments in the Foreign Exchange
Management (Foreign Currency Accounts by a Person Resident in India) Regulations,
2000, namely :-
1. Short title and commencement
(a) These Regulations may be called the Foreign
Exchange Management (Foreign Currency Accounts by a Person Resident in India)
(First Amendment) Regulations, 2004.
(b) They shall come into force on their publication
in the Official Gazette.
2. Amendment of the Regulations
In the Foreign Exchange Management
(Foreign Currency Accounts by a Person Resident in India) Regulations, 2000,
(a) In Regulation 5, in sub-regulation (1),
after sub-clause (d) the following shall be added, namely :-
'(e) 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. '
(b) (i) In Regulation
5A, in sub-regulation (1), the words, 'A person resident in India' may be
substituted by the words 'A resident Individual'.
(ii) In Regulation 5A, in sub-regulation (1)
after sub-clause (g) the following shall be added, namely :
'(h) by way of earnings 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.'
Sd/-
(
Usha Thorat )
Executive Director
G.S.R. 13(E) dated January 7, 2004