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RESERVE BANK
OF INDIA
(FOREIGN
EXCHANGE DEPARTMENT)
(CENTRAL
OFFICE)
G.S.R.351(E)
dated June 8, 2004 - Part II - Section 3 - Sub-section (i)
Notification
No.FEMA.115/2004-RB dated
March 25, 2004
Foreign
Exchange Management (Borrowing and Lending
in Rupees)(Amendment) Regulations, 2004
In
exercise of the powers conferred by clause (e) 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
4/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following
Regulations to amend the Foreign Exchange Management (Borrowing and Lending in
Rupees) Regulations, 2000, namely:
1.
Short title and commencement
- These Regulations may be called
the Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment)
Regulations, 2004.
- They shall come into force from the date of their
publication in the Official Gazette.
2. Amendment of the Regulations
In the Foreign
Exchange Management (Borrowing and Lending in Rupees) Regulations 2000, in Regulation
7, the following amendments shall be made, namely:-
- the title shall be substituted
as 'Loans in Rupees to non-residents'
- after sub-regulation (B) the following sub-regulation
shall be inserted, namely:
'(C)
for any purpose as per the loan policy laid down by the Board of Directors of
the Authorised Dealer.
Provided
that
a. the loan shall not be utilised
either singly or in association with other person for
- the business
of chit fund, or
- Nidhi
Company, or
- agricultural
or plantation activities or in real estate business or construction of farm houses,
or
- trading in Transferable Development
Rights (TDRs), or
- investment
in capital market including margin trading and derivatives.
b. the Reserve
Bank’s directives on such advances shall be duly complied
with;
c.
the loan amount shall not be credited to NRE/FCNR(B) accounts;
d.
the loan amount shall not be remitted outside India;
e. repayment of
loan shall be made from out of remittances from outside India through normal banking
channels or by debit to NRE/FCNR(B)/NRO accounts.'
Shyamala Gopinath
Executive Director
Foot
Note : The Principal Regulations were published in the Official Gazette vide
G.S.R.No.387(E) dated May 3, 2000 in Part II, Section 3, Sub-section (i) and subsequently
amended vide G.S.R.Nos.90(E) dated November 27, 2000 and 754(E) dated August 20,
2002.
Published in the Official Gazette of Government
of India - Extraordinary - Part-II, Section 3,
Sub-Section (i) dated 08.06.2004 - G.S.R.No.351(E)
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