RBI/2006-2007/401
A.
P. (DIR Series) Circular No. 57 May
18, 2007 To, All
Category - I Authorised Dealer banks and Authorised banks Madam
/ Sir, Foreign
Exchange Management (Deposit) Regulations, 2000-
Repatriation of maturity proceeds
of FCNR(B) deposits Attention
of Authorised Dealer Category - I (AD Category – I) and authorised banks is invited
to paragraph 11 of Schedule 2 to Notification
No. FEMA 5/2000-RB dated May 3, 2000, as amended from time to time, in terms
of which the terms and conditions as applicable to Non-Resident (External) Rupee
(NRE) accounts in respect of joint accounts, repatriation of funds, opening account
during temporary visit, operation by power of attorney, loans / overdrafts against
security of funds held in accounts, shall apply mutatis mutandis to Foreign Currency
(Non-Resident) Account (Banks) [FCNR (B) accounts]. 2.
As announced in the Annual
Policy Statement for the year 2007-08 [para 146 (ii) (iii)], it has been decided
to allow AD Category – I banks and authorised banks to permit remittance of the
maturity proceeds of FCNR (B) deposits to third parties outside India, provided
the transaction is specifically authorised by the account holder and the authorised
dealer is satisfied about the bonafides of the transaction. 3. Necessary
amendments to Notification
No. FEMA 5/2000-RB dated May 3, 2000, [Foreign Exchange Management (Deposit)
Regulations, 2000] are being notified separately. 4. AD
Category - I banks and authorised banks may bring the contents of the circular
to the notice of their constituents and 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) and is without
prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager |