Category Archives: Fema Circular

Fema Circular

A P (DIR Series) CIRCULAR NO-58/RBI., Dated: January 14, 2015




A P (DIR
Series)

CIRCULAR NO-58/RBI.,
Dated: January 14, 2015

Risk
Management and Inter Bank Dealings: Hedging under Past Performance Route-
Liberalisation of Documentation Requirements in the OTC market

Attention of
Authorised Dealers Category-I (AD Category-I) banks is invited to the Foreign
Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000
dated May 3, 2000 (Notification No. FEMA/25/RB-2000 dated
May 3, 2000) as amended from time to time and A.P. (DIR Series) circular
no. 32 dated December 28, 2010, as
amended from time to time.

2. In order to
further rationalise the documentation process for exporters and importers
relating to hedging of probable exposures based on past performance, the extant
guidelines in this regard have been revised as follows:

a) In terms of
paragraph (2)(g)(ii) of section B contained in the annex to the above
circular, importers and exporters are required to furnish a quarterly
declaration, as per Appendix M, duly certified by the Statutory Auditor, to
the AD Category I banks regarding amounts booked with other AD Category I
banks under this facility. It has now been decided that importers and
exporters shall, henceforth, be required to furnish a quarterly declaration
to the same effect signed by the Chief Financial Officer (CFO) and the
Company Secretary (CS). In the absence of a CS, the Chief Executive Officer
(CEO) or the Chief Operating Officer (COO) shall co-sign the undertaking
along with the CFO.

b) Further, in
terms of paragraph (2)(g)(iv), aggregate outstanding contracts in excess of
50 per cent of the eligible limit may be permitted by AD Category I banks on
being satisfied about the genuine requirements of their customers after
examination of the following documents:

- A
certificate from the Statutory Auditor of the customer that all
guidelines have been adhered to while utilizing this facility; and

- A
certificate of import/export turnover of the customer during the past
three years duly certified by their Statutory Auditor in the format
given in Appendix K.

It has now been
decided that, henceforth, AD Category I banks may permit aggregate
outstanding contracts in excess of 50 per cent of the eligible limit on
being satisfied about the genuine requirements of their customers after
examination of a document as per the format in Annex 2 to this circular,
signed by the CFO and CS, containing the following:

- A
declaration that all guidelines have been adhered to while utilizing
this facility; and

- A
certificate of import/export turnover of the customer during the past
three years.

In the absence
of a CS, the CEO or the COO shall co-sign the undertaking along with the
CFO.

c) As part of
the annual audit exercise, the Statutory Auditor shall also certify the
following:

i. The
amounts booked with AD Category-I banks under this facility; and

ii. All
guidelines have been adhered to while utilizing this facility over the
past financial year.

3. All other
operational guidelines, terms and conditions shall remain unchanged.

4. AD Category-I
banks may bring the contents of this circular to the notice of their
constituents and customers.

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 are without prejudice
to
permissions/ approvals, if any, required under any other law.


RBI/2014-15/401

(Dimple
Bhandia)
General Manager-in-Charge

Annex I

Format of
Declaration of amounts booked/cancelled under Past Performance facility

[On letterhead of
the Company]

Date:

To,

(Name and address of
the Bank)

Dear Sir,

Sub:
Declaration of amounts booked/cancelled under Past Performance facility

We refer to the
facility of booking of Forward or Option Contracts involving Foreign Exchange,
based on the past performance facility with Authorised Dealer Category I Banks
(AD Category I Banks), more specifically in relation to the undertaking
submitted by us to you, dated [ ] in this regard ("Undertaking").

In accordance with
the said Undertaking, we hereby furnish a declaration regarding the amounts of
the transactions booked by us with all AD Category I banks.

We are availing the
past performance limit with the following AD Category I banks:

………………………………….

Please find below
the information regarding amounts booked / cancelled with all AD Category I
Banks under the said past performance facility as permitted under the FEMA, 1999
Regulations :

(Amount in US
Dollar)



Eligible limit under past performance


Aggregate amount of contracts booked with all the ADs from April
till date


Amount of contracts cancelled with all ADs from April till date
_______


Amount of contracts o/s with all ADs as on date


Amount utilised (by delivery of documents) as on date


Available limits under past performance as on date

Thanking you,

Yours faithfully,

For XXXXXX


(Chief Financial Officer)

(Company Secretary)

Annex II

Format for
Declaration for utilisation of past performance limits in excess of 50 per cent
and details of import / export turnover, overdues, etc.

[On letterhead of
the Company]

Date:

To,

(Name and address of
the Bank)

Dear Sir,

Sub:
Declaration for utilisation of past performance limits in excess of 50 per cent
and details of import / export turnover, overdues, etc.

1. The value of
the outstanding forward cover availed by us under the past performance route
as on [date] is [ ] per cent of our eligibility for our imports [exports].

2. We certify
that all guidelines in respect of hedging of probable exposures under the
past performance route have been complied with while utilizing this
facility.

3. We declare
that the information in the table below is true to the best of our knowledge
and is provided in support of our application to hedge our currency risk
under the past performance route using permitted foreign exchange derivative
contracts in terms of Regulations and Guidelines issued under FEMA, 1999
(Act 42 of 1999).

(Amount in USD
million)



Financial Year
(April-March)


Turnover


Percentage of overdue bills to turnover


Existing limit for booking of forward cover based on past
performance


Import


Export


Import


Export


Export


Import
Year
1
 
 
 
 
 
 
Year
2
 
 
 
 
 
 
Year
3
 
 
 
 
 
 

Yours faithfully,

For XXXXXX


(Chief Financial Officer)

(Company Secretary)

A P (DIR Series) CIRCULAR NO-57/RBI., Dated: January 06, 2015


A P (DIR Series) CIRCULAR NO-57/RBI., Dated: January 06, 2015


Exim Bank's Line of Credit of USD 144 million to the Government of the
Republic of Liberia


Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
September 11, 2013 with the Government of the Republic of Liberia for making
available to the latter, a Line of Credit (LOC) of USD 144 million (USD One
Hundred and Forty four Thousand) for financing Power Transmission and
Distribution Project. The goods, machinery, equipment and services including
consultancy services from India for exports under this Agreement are those which
are eligible for export under the Foreign Trade Policy of the Government of
India and whose purchase may be agreed to be financed by the Exim Bank under
this Agreement. Out of the total credit by Exim Bank under this Agreement, the
goods and services including consultancy services of the value of at least 75
per cent of the contract price shall be supplied by the seller from India and
the remaining 25 percent goods and services may be procured by the seller for
the purpose of Eligible Contract from outside India.

2.
The Credit Agreement under the LOC is effective from December 19, 2014 and the
date of execution of Agreement is September 11, 2013. Under the LOC, the last
date for opening of Letters of Credit and Disbursement will be 48 months from
the scheduled completion date of contract in the case of project exports and 72
months (September 10, 2019) from the execution date of the Credit Agreement in
the case of supply contracts.

3.
Shipments under the LOC will have to be declared on GR / SDF Forms as per
instructions issued by the Reserve Bank from time to time.

4.
No agency commission is payable under the above LOC. However, if required, the
exporter may use his own resources or utilize balances in his Exchange Earners’
Foreign Currency Account for payment of commission in free foreign exchange.
Authorised Dealer Category- I (AD Category-l) banks may allow such remittance
after realization of full payment of contract value subject to compliance with
the prevailing instructions for payment of agency commission.

5.
AD Category-I banks may bring the contents of this circular to the notice of
their exporter constituents and advise them to obtain full details of the Line
of Credit from the Exim Bank’s office at Centre One, Floor 21, World Trade
Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to www.eximbankindia.in.

6.
The Directions contained in this circular have been issued under sections 10(4)
and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.


RBI/2014-15/388


(C D Srinivasan)
Chief General Manager

A P (DIR Series) CIRCULAR NO-56/RBI., Dated: January 06, 2015

A P (DIR
Series)

CIRCULAR NO-56/RBI.,
Dated: January 06, 2015

Non-resident
guarantee for non-fund based facilities entered between two resident entities

Attention of
Authorised Dealer Category – I (AD Category – I) banks is invited to A. P. (DIR
Series) Circular No. 20 dated
August 29, 2012 in terms of which non-resident guarantee for non-funded
facilities such as Letters of Credit/guarantees/Letters of Undertaking (LoU)
/Letter of Comfort (LoC) entered between two persons resident in India is
allowed under the general permission route.

2. It is clarified
that under the provisions of aforesaid Circular, residents that are subsidiaries
of multinational companies can also hedge their foreign currency exposure
through permissible derivative contracts executed with an AD Category – I bank
in India on the strength of guarantee of its non-resident group entity. The
method of discharge of liability by the non-resident guarantor under the
guarantee and the subsequent repayment of the liability by the principal debtor
shall continue to be governed, as hitherto, by the provisions of A.P. (DIR
Series) Circular No. 28 dated
March 30, 2001.

3. AD Category-I
banks may bring the contents of this circular to the notice of their
constituents and customers 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 are without prejudice
to permissions / approvals, if any, required under any other law.


RBI/2014-15/387

(B P Kanungo)
Principal Chief General Manager

A P (DIR Series) CIRCULAR NO-54/RBI., Dated: December 29, 2014

A P (DIR
Series)

CIRCULAR NO-54/RBI.,
Dated: December 29, 2014

Overseas
Direct Investments by Indian Party – Rationalization / Liberalization

Attention of the
Authorised Dealer (AD – Category I) bank is invited to Regulation 18 and 18A of
Notification No. FEMA.120/RB-2004 dated July 7, 2004 [Foreign Exchange
Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations,
2004] (the Notification), as amended from time to time and the provisions under
A.P. (DIR Series) Circular No. 96 dated
March 28, 2012.

2. In order to grant
more flexibility to the Indian party, it has been decided to further liberalize
certain regulations of the Notification as detailed under.

(i) Creation of
charge on shares of JV / WOS / step down subsidiary (SDS) in favour of
domestic / overseas lender

In terms of the
extant FEMA provisions, creation of charge (pledge) on the shares of an JV /
WOS of an Indian party in favour of domestic / overseas lender for the
purpose of availing facilities (funded or non-funded) by the Indian party
and / or the concerned JV / WOS is under the automatic route.

It has been
decided that the designated AD bank may permit creation of charge / pledge
on the shares of the JV / WOS / SDS (irrespective of the level) of an Indian
party in favour of a domestic or overseas lender for securing the funded and
/ or non-funded facility to be availed of by the Indian party or by its
group companies /sister concerns / associate concerns or by any of its JV /
WOS / SDS (irrespective of the level) under the automatic route subject to
the following:

a) The
Indian party is complying with the provisions under Regulation 6 (and
Regulation 7, if applicable) of the Notification ibid for undertaking
financial commitment;

b)
Compliance to the provisions under Regulation 18 of the Notification
ibid;

c) The
period of charge, if not specified upfront, may be co-terminus with the
period of end use (like loan or other facility) for which charge has
been created;

d) The loan
/ facility availed by the JV / WOS / SDS from the domestic / overseas
lender shall be utilized only for its core business activities overseas
and not for investing back in India in any manner whatsoever;

e) A
certificate from the Statutory Auditors' of the Indian party, to the
effect that the loan / facility availed by the JV / WOS / SDS has not
been utilized for direct or indirect investments in India, is to be
obtained and kept by the designated AD;

f) The
invocation of charge resulting into the domestic lender acquiring the
shares of the overseas JV / WOS / step down subsidiary shall be governed
by the extant FEMA provisions / regulations issued by the Reserve Bank
from time to time;

g) The
facilities (funded or non-funded) extended by the domestic lender to the
Indian party or to its group / sister / associate concern or to any of
its overseas JV / WOS / SDS shall also be governed by the prudential
norms and other guidelines issued by the Department of Banking
Regulation (DBR, the erstwhile DBOD), Reserve Bank of India from time to
time; and

h) The
matter relating to the setting up / acquiring the multi-layered
structure of overseas entities by the Indian party, wherever applicable,
is under the examination of the Reserve Bank and the decision taken in
this regard shall be conveyed in due course for necessary compliance at
AD / Indian party level.

(ii) Creation of
charge on the domestic assets in favour of overseas lenders to the JV / WOS
/ step down subsidiary

As per the
extant FEMA provisions, creation of charge on the domestic assets (movable /
immovable / financial / other) of an Indian party (or its group / sister /
associate concern including the individual promoter / director) in favour of
an overseas lender to the JV / WOS / step down subsidiary (SDS) requires
prior approval of the Reserve Bank.

It has been
decided that the designated AD bank may permit creation of charge (by way of
pledge, hypothecation, mortgage, or otherwise) on the domestic assets of an
Indian party (or its group companies / sister concerns / associate concerns
including the individual promoters / directors) in favour of an overseas
lender for securing the funded and / or non-funded facility to be availed of
by the JV / WOS / SDS (irrespective of the level) of the Indian party under
the automatic route subject to the following:

(a) The
Indian party is complying with the provisions under Regulation 6 (and
Regulation 7, if applicable) of the Notification ibid for undertaking
the financial commitment;

(b)
Compliance to the provisions under Regulation 18A(1) of the Notification
ibid;

(c) The
domestic assets, on which charge is being created, are not securitized;

(d) The
period of charge, if not specified upfront, may be co-terminus with the
period of end use (like loan or other facility) for which charge has
been created;

(e) The loan
/ funds raised overseas by the JV / WOS / SDS shall be utilized only for
its core business activities overseas and not for investing back in
India in any manner whatsoever;

(f) A
certificate from the Statutory Auditors' of the Indian party, to the
effect that the loan / funds raised overseas by the JV / WOS / SDS has
not been utilized for direct or indirect investments in India, is to be
obtained and kept by the designated AD;

(g) The
overseas lender undertakes that, in the event of enforcement of charge,
they shall transfer the domestic assets by way of sale to a resident
only;

(h) In case
of invocation of charge, the resultant remittance of the proceeds
exceeding the prescribed limit of the financial commitment of the Indian
party (prevailed at the time of creation of charge) shall require prior
approval of the Reserve Bank;

(i) Wherever
creation of charge involves pledge of shares of an Indian company, the
pledge shall also be governed by the extant FEMA provisions /
regulations issued by the Reserve Bank and the consolidated Foreign
Direct Investment (FDI) policy issued by the Government of India from
time to time; and

(j) The
matter relating to the setting up / acquiring the multi-layered
structure of overseas entities by the Indian party, wherever applicable,
is under the examination of the Reserve Bank and the decision taken in
this regard shall be conveyed in due course for necessary compliance at
AD / Indian party level.

(iii) Creation
of charge on overseas assets in favour of domestic lender

Creation of
charge on the overseas assets of JV / WOS / SDS of an Indian party in favour
of a domestic lender to the Indian party or to its group / sister /
associate concern or to any of its overseas JV / WOS / SDS requires prior
approval of the Reserve Bank.

It has been
decided that the designated AD bank may permit creation of charge (by way of
hypothecation, mortgage, or otherwise) on the overseas assets (excluding the
shares) of the JV / WOS / SDS (irrespective of the level) of an Indian party
in favour of a domestic lender for securing the funded and / or non-funded
facility to be availed of by the Indian party or by its group companies /
sister concerns / associate concerns or by any of its overseas JV / WOS /
SDS (irrespective of the level) under the automatic route subject to the
following:

a) The
Indian party is complying with the provisions under Regulation 6 (and
Regulation 7, if applicable) of the Notification ibid for undertaking
financial commitment;

b)
Compliance to the provisions under Regulation 18A(2) of the Notification
ibid;

c) The
overseas assets, on which charge is being created, are not securitized;

d) The
period of charge, if not specified upfront, may be co-terminus with the
period of end use (like loan or other facility) for which charge has
been created;

e) The loan
/ facility availed by the JV / WOS / SDS from the domestic lender shall
be utilized only for its core business activities overseas and not for
investing back in India in any manner whatsoever;

f) A
certificate from the Statutory Auditors' of the Indian party, to the
effect that the loan / facility availed by the JV / WOS / SDS has not
been utilized for direct or indirect investments in India, is to be
obtained and kept by the designated AD;

g) The
invocation of charge resulting into the domestic lender acquiring the
overseas assets shall require prior approval of the Reserve Bank; and

h) The
matter relating to the setting up / acquiring the multi-layered
structure of overseas entities by the Indian party, wherever applicable,
is under the examination of the Reserve Bank and the decision taken in
this regard shall be conveyed in due course for necessary compliance at
AD / Indian party level.

3. Necessary
amendments to the Notification ibid has been issued vide Notification No.
FEMA.322/2014-RB dated October 14, 2014 and effective from the date of
publication in the Gazette i.e. December 03, 2014.

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 Sections 10(4) and 11(1) of
the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without
prejudice to permissions/approvals, if any, required under any other law.


RBI/2014-15/371

(C D
Srinivasan) 
Chief General Manager

A P (DIR Series) CIRCULAR NO-53/RBI., Dated: December 29, 2014

A P (DIR
Series)

CIRCULAR NO-53/RBI.,
Dated: December 29, 2014

Exim Bank's
Line of Credit of USD 82 million to the Government of the Republic of Congo

Export-Import Bank
of India (Exim Bank) has entered into an Agreement dated June 27, 2014 with the
Government of the Democratic Republic of Congo for making available to the
latter, a Line of Credit (LOC) of USD 82 million (USD Eighty Two million) for
financing eligible goods, Machinery, equipment and services including
consultancy services from India for the purpose of financing completion of
Ketende Hydro-electric Project in Congo. The goods, machinery, equipment and
services including consultancy services from India for exports under this
Agreement are those which are eligible for export under the Foreign Trade Policy
of the Government of India and whose purchase may be agreed to be financed by
the Exim Bank under this Agreement. Out of the total credit by Exim Bank under
this Agreement, the goods and services including consultancy services of the
value of at least 75 per cent of the contract price shall be supplied by the
seller from India and the remaining 25 percent goods and services may be
procured by the seller for the purpose of Eligible Contract from outside India.

2. The Credit
Agreement under the LOC is effective from October 8, 2014 and the date of
execution of Agreement is June 27, 2013. Under the LOC, the last date for
opening of Letters of Credit and Disbursement will be 48 months from the
scheduled completion date(s) of contract(s) in the case of project exports and
72 months (June 26, 2020) from the execution date of the Credit Agreement in the
case of supply contracts.

3. Shipments under
the LOC will have to be declared on GR/SDF Forms as per instructions issued by
the Reserve Bank from time to time.

4. No agency
commission is payable under the above LOC. However, if required, the exporter
may use his own resources or utilize balances in his Exchange Earners' Foreign
Currency Account for payment of commission in free foreign exchange. Authorised
Dealer Category- l (AD Category-l) banks may allow such remittance after
realization of full payment of contract value subject to compliance with the
prevailing instructions for payment of agency commission.

5. AD Category-I
banks may bring the contents of this circular to the notice of their exporter
constituents and advise them to obtain full details of the Line of Credit from
the Exim Bank's office at Centre One, Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005 or log on to www.eximbankindia.in .

6. The Directions
contained in this circular have been issued under sections 10(4) and 11(1) of
the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without
prejudice to permissions/approvals, if any, required under any other law.


RBI/2014-15/370

(C. D.
Srinivasan) 
Chief General Manager

A P (DIR Series) CIRCULAR NO-52/RBI., Dated: December 29, 2014

A P (DIR
Series)

CIRCULAR NO-52/RBI.,
Dated: December 29, 2014

Exim Bank's
Line of Credit of USD 120.05 million to the Government of the Republic of Rwanda

Export-Import Bank
of India (Exim Bank) has entered into an Agreement dated October 26, 2013 with
the Government of the Republic of Rwanda for making available to the latter, a
Line of Credit (LOC) of USD 120.05 million (USD One Hundred and Twenty million
and fifty thousand) for financing [i] Export Targeted Modern Irrigated
Agricultural Project (USD 60.22 million); and [ii] Extension of Export Targeted
Modern Irrigated Agricultural Project (USD 59.83 million). The goods, machinery,
equipment and services including consultancy services from India for exports
under this Agreement are those which are eligible for export under the Foreign
Trade Policy of the Government of India and whose purchase may be agreed to be
financed by the Exim Bank under this Agreement. Out of the total credit by Exim
Bank under this Agreement, the goods and services including consultancy services
of the value of at least 75 per cent of the contract price shall be supplied by
the seller from India and the remaining 25 percent goods and services may be
procured by the seller for the purpose of Eligible Contract from outside India.

2. The Credit
Agreement under the LOC is effective from December 2, 2014 and the date of
execution of Agreement is October 26, 2013. Under the LOC, the last date for
opening of Letters of Credit and Disbursement will be 48 months from the
scheduled completion date of contract in the case of project exports and 72
months (October 25, 2019) from the execution date of the Credit Agreement in the
case of supply contracts.

3. Shipments under
the LOC will have to be declared on GR/SDF Forms as per instructions issued by
the Reserve Bank from time to time.

4. No agency
commission is payable under the above LOC. However, if required, the exporter
may use his own resources or utilize balances in his Exchange Earners' Foreign
Currency Account for payment of commission in free foreign exchange. Authorised
Dealer Category- l (AD Category-l) banks may allow such remittance after
realization of full payment of contract value subject to compliance with the
prevailing instructions for payment of agency commission.

5. AD Category-I
banks may bring the contents of this circular to the notice of their exporter
constituents and advise them to obtain full details of the Line of Credit from
the Exim Bank's office at Centre One, Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005 or log on to www.eximbankindia.in .

6. The Directions
contained in this circular have been issued under sections 10(4) and 11(1) of
the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without
prejudice to permissions/approvals, if any, required under any other law.


RBI/2014-15/369

(C. D.
Srinivasan) 
Chief General Manager

 

A P (DIR Series)CIRCULAR NO-51/2014, Dated: December 17, 2014

A P (DIR
Series)
CIRCULAR
NO-51/2014, Dated: December 17, 2014

Foreign
Exchange Management (Deposit) Regulations, 2000 – Exemption thereof

Attention of
Authorised Dealer Category-I (AD Category-I) banks is invited to Regulation 4(5)
of the Foreign Exchange Management (Deposit) Regulations, 2000, notified vide
Notification No. FEMA 5/2000-RB
dated May 3, 2000, as amended from time to time, in terms of which nothing
contained in the regulations applies to the deposits held in accounts maintained
with an authorised dealer by the United Nations Organisation and its
subsidiary/affiliate bodies in India, and its or their officials in India.

2. It has been
observed that Authorised Dealer banks are frequently coming across cases related
to opening of accounts for multilateral organisations, of which India is a
member nation.

3. With the
objective of bringing all the multilateral organisations at par, for opening of
accounts in India, the extant instructions have been reviewed and it has been
decided to include in the exemptions, laid down in Foreign Exchange Management
(Deposit) Regulation, 2000, issued vide Notification No. FEMA 5/2000-RB dated
May 3, 2000 (as amended from time to time), deposits held in accounts maintained
with an authorised dealer by any multilateral organization of which India is a
member nation, and its subsidiary/affiliate bodies in India, and its or their
officials in India.

4. Accordingly, it
is hereby informed that Reserve Bank has since amended the Principal Regulations
through the Foreign Exchange Management (Deposit) (Amendment) Regulations, 2014
notified vide Notification No. FEMA. 327/2014-RB dated November 24, 2014 c.f.
G.S.R. No. 879(E) dated December 9, 2014.

5. AD Category- I
banks may bring the contents of the circular to the notice of their constituents
concerned.

6. 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.


RBI/2014-15/360

(C D
Srinivasan) 
Chief General Manager

A P (DIR Series)CIRCULAR NO-50/2014, Dated: December 16, 2014

A P (DIR
Series)
CIRCULAR
NO-50/2014, Dated: December 16, 2014

Rupee
Drawing Arrangement – Delegation of work to Regional Offices-Submission of
Statements / Returns

Attention of
Authorised Dealer Category – I (AD Cat – I) banks is invited to A.P. (DIR
Series) Circular No. 28 [A.
P. (FL/RL Series) Circular No. 02] dated February 6, 2008 on Memorandum of
Instructions for Opening and Maintenance of Rupee / Foreign Currency Vostro
Accounts of Non-resident Exchange Houses, as amended from time to time.

2. In continuation
to A.P. (DIR Series) Circular No. 7 dated
July 18, 2014, it is clarified that subsequent to delegation of Rupee Drawing
Arrangement (RDA) work, Authorised Dealer Category I banks are required to make
all their correspondence with Reserve Bank including submission of prescribed
statements to the Regional Office of the Foreign Exchange Department of the
Reserve Bank, under whose jurisdiction their registered offices function. It has
been observed that several Authorised Dealer Category I banks continue to submit
the correspondence / statements to the Central Office, causing avoidable delays
in scrutiny / processing. Thus, Authorised Dealer Category I banks are advised
to note the instructions regarding correspondence and submission of statements
to the concerned Regional Office, as mentioned above.

3. All other
instructions issued vide A.P. (DIR Series) Circular No. 28 [A. P. (FL/RL Series)
Circular No. 02] dated February 6, 2008, as amended from time to time, will
remain unchanged.

4. AD Category-I
Banks may bring the contents of this circular to the notice of their
constituents concerned.

5. The directions
contained in this circular have been issued under Section 10(4) and Section
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.


RBI/2014-15/358

(B P Kanungo) 
Principal Chief General Manager

 

A P (DIR Series)CIRCULAR NO-49/2014, Dated: December 16, 2014

A P (DIR
Series)
CIRCULAR
NO-49/2014, Dated: December 16, 2014

Money
Transfer Service Scheme- Delegation of work to Regional Offices- Submission of
Statements / Returns

Attention of
Authorised Persons, who are Indian Agents under Money Transfer Service Scheme
(MTSS) is invited to the A.P. (DIR Series) Circular No. 89 dated
March 12, 2013 on Money Transfer Service Scheme – Revised Guidelines, as amended
from time to time.

2. In continuation
to A.P. (DIR Series) Circular No. 8 dated
July 18, 2014, it is clarified that subsequent to delegation of Money Transfer
Service Scheme (MTSS) work, all Authorised Persons, who are Indian agents under
MTSS are required to make all their correspondence with Reserve Bank including
submission of prescribed statements to the Regional Office of the Foreign
Exchange Department of the Reserve Bank, under whose jurisdiction their
registered offices function. It has been observed that several Indian agents
continue to submit the correspondence / statements to the Central Office,
causing avoidable delays in scrutiny / processing. Thus, the Indian agents are
advised to note the instructions regarding correspondence and submission of
statements to the concerned Regional Office, as mentioned above.

3. All other
instructions issued vide A. P. (DIR Series) Circular No. 89 dated
March 12, 2013, as amended from time to time, will remain unchanged.

4. Authorised
Persons (Indian Agents) may bring the contents of this circular to the notice of
their constituents concerned.

5. The directions
contained in this circular have been issued under Section 10(4) and Section
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.


RBI/2014-15/357

(B P Kanungo) 
Principal Chief General Manager

A P (DIR Series) CIRCULAR NO-48/2014, Dated: December 9, 2014

A P (DIR
Series)

CIRCULAR NO-48/2014,
Dated: December 9, 2014


Govt  allows 

Overseas Investments by Alternative Investment Funds (AIF)

Attention of the
Authorised Dealer (AD – Category I) banks is invited to Regulation 26 of
Notification No. FEMA.120/RB-2004 dated
July 7, 2004 [Foreign Exchange Management (Transfer or Issue of any Foreign
Security) (Amendment) Regulations, 2004] (the Notification), as amended from
time to time and the provisions under A.P.(DIR Series) Circulars No. 49 and 50dated
April 30, 2007 and May 04, 2007 respectively.

2. On a review, it
has been decided to permit an Indian Alternative Investment Fund (AIF),
registered with Securities and Exchange Board of India (SEBI), to invest
overseas in terms of the provisions issued under the A.P. (DIR Series) Circulars
No. 49 and 50 dated
April 30, 2007 and May 04, 2007 respectively.

3. Necessary
amendments to the Notification ibid has been issued vide Notification No.
FEMA.326/RB-2014 dated November 12, 2014 (copy enclosed) and effective from the
date of publication in the Gazette i.e. November 21, 2014.

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 Sections 10(4) and 11(1) of
the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without
prejudice to permissions/approvals, if any, required under any other law.


RBI/2014-2015/344

(C D
Srinivasan)
Chief General Manager