ForeignExchangeFacilitiesforIndividuals.docm

ForeignExchangeFacilitiesforIndividuals.docm - Update on...

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Update on “Foreign Exchange Facilities for Individuals” (As of October 2012) S. N o Provision/topic Reference in the book Revised provision Authority for revision/change 1 Prohibited foreign investment Part III/6.1.3/ page 181 See annexure A that follows this table Revised vide AP. Dir. Cir 45 dt. June 28 th , 2012. 2 Sector specific investment policies Annexure V, page 253 See annexure B that follows this table (replace Annexure V with annexure B) Revised vide AP. Dir. Cir 45 dt. June 28 th , 2012. 3 Booking of forward contracts for hedging by residents Part II/1.12/ page 49 RBI extends flexibility in regard to rollover of contracts by switching AD Category banks on the maturity date of the contract, to all hedge transactions undertaken by residents Revised vide AP. Dir. Cir. 3 dt. July 11, 2012. 4 Submission of Form A2 for drawal of foreign exchange Part II/ 1.5 Documentatio n/ page 45 Annexure II/ page 100 See the revised Form A2 given below Revised vide AP. Dir. Cir 5 dt. July 12, 2012 5 EEFC accounts Residents foreign currency Accounts in India Part II/ 6.1.1/ page 79 Guidance Note/ page 234 credit of 100% foreign exchange earnings to the EEFC account allowed subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments. Revised vide AP. Dir. Cir 12 dt. July 31, 2012 6 Resident Foreign Currency (Domestic ) Accounts Part II/ 6.3/ page 81 100% foreign exchange earnings can be credited to the RFC(D) account subject to the condition that the sum total of the accruals in the account Revised vide AP. Dir. Cir 12 dt. July 31, 2012
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Residents foreign currency accounts in India Guidance Note/ page 234 during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments. 7 Process of compounding Part IV/ 1.6.1/ page 213 Whenever a contravention is identified by the Reserve Bank or brought to its notice by the entity involved in contravention by way of a reference other than through the prescribed application for compounding , the Bank will continue to decide (i) whether a contravention is technical and/or minor in nature and, as such, can be dealt with by way of an administrative/ cautionary advice; (ii) whether it is material and, hence, is required to be compounded for which the necessary compounding procedure has to be followed or (iii) whether the issues involved are sensitive / serious in nature and, therefore, need to be referred to the Directorate of Enforcement (DOE). However, once a compounding application is filed by the concerned entity suo moto , admitting the contravention, the same will not be considered as ‘technical’ or ‘minor’ in nature and the compounding process shall be initiated in terms of section 15 (1) of Foreign Exchange Management Act, 1999 read with Rule 9 of Foreign AP. Dir. Cir 11 dt. July 31, 2012
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