Reserve Bank Of India
Exchange Control Department
Central Office
Mumbai 400 001.
Notification No.FEMA/ 75 /2002-RB
November 1, 2002
In exercise of the powers conferred
by clause (d) of sub-section (3) of Section 6 and sub-section (2) of Section
47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial
modification of its Notification No.FEMA 3/2000-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 (Borrowing or Lending in Foreign Exchange)
Regulations, 2000, namely :-
- (1) These Regulations may be called the Foreign
Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment)
Regulations, 2002.
(2) They shall come into
force with effect from their publication in the Official Gazette.
- In the Foreign Exchange Management (Borrowing
or Lending in Foreign Exchange) Regulation, 2000.
- In Regulation 5, after sub-regulation (5),
the following sub-regulation shall be added, namely : -
'(6) An individual resident
in India may borrow a sum not exceeding US$.250,000/- or its equivalent
from his close relatives outside India, subject to the conditions that -
- the minimum maturity period of the loan
is one year;
- the loan is free of interest; and
- the amount of loan is received by inward
remittance in free foreign exchange through normal banking channels or
by debit to the NRE/FCNR account of the non-resident lender.
Explanation :
'Close relative' means relative
as defined in Section 6 of the Companies Act, 1956'.
- In the Schedule, clause (iv) with the heading
'Scheme for raising loans from NRIs on repatriation basis', shall be omitted.
K.J. UDESHI
Executive Director.
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Published in the Official Gazette of Government
of India - Extraordinary - Part-II, Section 3,
Sub-Section (i) dated 31.12.2002 - G.S.R.No.854(E)
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