Foreign Exchange
Management (Deposit) Regulations, 2000 –
Credit to Non Resident (External)
Rupee Accounts
Attention of Authorised Dealer Category
- I (AD Category – I) banks is invited to paragraph 3 of Schedule I to the Foreign
Exchange Management (Deposit) Regulations, 2000 [Notification
No. FEMA 5/2000-RB dated May 3, 2000], as amended from time to time, giving
the permissible credits to the Non-Resident (External) Rupee (NRE) account. Further,
in terms of Anti-Money Laundering guidelines [cf A.
P. (DIR Series) Circular No. 14 dated October 17, 2007], FFMCs are permitted
to encash foreign currency and make cash payment only up to USD 3000 or its equivalent.
Amount exceeding USD 3000 or its equivalent has to be paid by way of demand draft
or bankers' cheque.
2. As a measure of liberalization and
also to meet the genuine needs of the NRE account holders, it has been decided
that AD Category – I banks and authorized banks may credit proceeds of demand
drafts / bankers' cheques issued against encashment of foreign currency to the
NRE account of the NRI account holder where the instruments issued to the NRE
account holder are supported by encashment certificate issued by AD Category –
I / Category – II.
3. AD Category – I banks and authorized
banks may bring the contents of the circular to the notice of their constituents
concerned.
4. 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,