RBI/2006-07/190
A.P. (DIR Series) Circular No. 14
November 28, 2006
To
All Category - I Authorised Dealer
Banks
Madam/Sir,
Foreign Exchange Management Act
(FEMA), 1999 – Current Account Transactions – Liberalisation
Attention of Authorised Dealer
Category-I (AD Category-I) banks is invited to Foreign Exchange Management (Current
Account Transactions) Rules, 2000 notified vide Notification
No. G.S.R.381(E) dated 3rd May 2000, as amended from time to time.
2. In terms of Rule 5 of the
Foreign Exchange Management (Current Account Transactions) Rules, 2000, prior
approval of the Reserve Bank is required for drawing foreign exchange 'for remittance
for purchase of trademark or franchise in India' [item 16 of Schedule III to
the Foreign Exchange Management (Current Account Transactions) Rules, 2000].
With a view to liberalising the procedure further and providing greater flexibility,
in the Foreign Exchange Management (Current Account Transaction) Rules, 2000,
in Schedule III, item number 16 and the entry relating thereto has been omitted.
Henceforth, AD Category-I banks may permit drawal of foreign exchange by person
for purchase of trademark or franchise in India without approval of the Reserve
Bank.
3. The amendment to the Foreign
Exchange Management (Current Account Transactions) Rules, 2000, in this regard
has been issued vide Notification G.S.R. 412(E) dated July 10, 2006 by the Government
of India. (copy enclosed).
4. AD Category-I banks may bring
the contents of this circular to the notice of their constituents and customers
concerned.
5. The directions contained
in this Circular have been issued under Section 10 (4) and 11 (1) of the Foreign
Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions
/ approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge
REGD NO.D..L-33004/99
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THE GAZETTE OF INDIA
EXTRAORDINARY
PART II – Section 3 – Sub-Section (i)
PUBLISHED BY AUTHORITY
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No.307] NEW DELHI, TUESDAY, JULY 11, 2006/ASADHA
20, 1928
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MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 10th July, 2006
G.S.R. No.412 (E) - In exercise
of the powers conferred by Sub-section (1) of Section 46 read with proviso to
Section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in consultation
with the Reserve Bank of India, the Central Government, having considered it
necessary in the public interest, hereby makes the following amendment in the
Foreign Exchange Management (Current Account Transactions) Rules, 2000, namely
–
1. (1) These rules may be called
the Foreign Exchange Management (Current Account Transaction) (Amendment) Rules,
2006.
(2) They shall come into force
from the date of their publication in the Official Gazette.
2. (1) In the Foreign Exchange
Management (Current Account Transaction) Rules, 2000, in Schedule III, item
number 16 and the entry relating thereto shall be omitted.
[F.No.1/2/EM/2004]
Dr. K. P. KRISHNAN, Jt. Secy.
Note:- The principal rules were
published in the Gazette of India, Extraordinary , Part II, Section 3, Sub-section
(i) vide number G.S.R.381
(E), dated the 3rd May 2000 and subsequently amended last vide
No.G.S.R. 512 (E) dated the 28th July 2005. |