Notification No.FEMA.133/2005-RB dated
April 1, 2005
Foreign Exchange Management (Deposit) (Amendment)
Regulations, 2005
In exercise of the powers conferred by clause
(f) of sub-section (3) of section 6, 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 5/2000-RB dated May 3, 2000, as amended from time to time,
the Reserve Bank of India makes the following Regulations to amend the Foreign
Exchange Management (Deposit) Regulations, 2000, namely:
1. Short title and commencement
(i) These Regulations may be called the Foreign
Exchange Management (Deposit) (Amendment) Regulations, 2005.
(ii) They shall come into force on the 15th
day of March 2005.@
2. Amendment of the Regulations
Sub-clause (c) to clause 9 of Schedule 1 to
the Foreign Exchange Management (Deposit) Regulations, 2000, shall be substituted
as under:
'Operations by Power of Attorney: Authorised
dealers/ authorised banks may allow operations on an NRE account in terms of
Power of Attorney or other authority granted in favour of a resident by the
non-resident account holder, provided such operations are restricted to withdrawals
for local payments or remittance to the account holder himself through normal
banking channels. In cases where the account holder or a bank designated by
him is eligible to make investments in India, the Power of Attorney holder may
be permitted by the authorised dealers/banks to operate the account to facilitate
such investment. The resident Power of Attorney holder shall not, however, be
allowed to repatriate outside India funds held in the account under any circumstances
other than to the account holder himself, nor to make payment by way of gift
to a resident on behalf of the account holder or to transfer funds from the
account to another NRE account.'
( F. R. Joseph
)
Chief General Manager
Foot Note: @ The effective date has been indicated
as March 15, 2005 to implement the recommendations of Committee on Procedures
and Performance Audit on Public Services (CPPAPS) urgently.
The Principal Regulations were published in
the Official Gazette vide G.S.R. No. 388(E) dated May 5, 2000 in Part II, section
3, subsection (i) and subsequently amended vide
G.S.R. No. 262 (E) dated 09.04.2002
G.S.R. No. 577 (E) dated 19.08.2002
G.S.R. No. 855 (E) dated 31.12.2002
G.S.R. No. 494(E) dated 04.08.2004