ربي فوريكس فاقس

أسئلة وأجوبة فبيكس
(كما في 01 أغسطس 2017)
ويقدم قانون إدارة النقد الأجنبي لعام 1999 الإطار القانوني لإدارة معاملات الصرف الأجنبي في الهند. وبموجب قانون إدارة العملات الأجنبية لعام 1999 الذي بدأ نفاذه اعتبارا من 1 حزيران / يونيه 2000، تم تصنيف الصرف إما كمعامالت رأسمالية أو حساب جاري. جميع المعاملات التي يقوم بها مقيم لا يغير أصوله أو خصومه، بما في ذلك الخصوم الطارئة، خارج الهند هي معاملات الحساب الجاري.
وبموجب القسم 5 من قانون الهجرة والإدماج، فإن الأشخاص المقيمين في الهند (1) أحرار في شراء أو بيع العملات الأجنبية لأي معاملة للحساب الجاري، باستثناء المعاملات التي تحظر الحكومة المركزية سحب العملات الأجنبية منها، مثل التحويلات من أرباح اليانصيب . تحويل الدخل من السباق / ركوب الخيل، وما إلى ذلك أو أي هواية أخرى؛ تحويلات لشراء تذاكر اليانصيب، المجلات المحظورة / المحظورة، برك كرة القدم، اليانصيب، وما إلى ذلك؛ تحويل أرباح الأسهم من قبل أي شركة ينطبق عليها شرط موازنة الأرباح؛ دفع عمولة على الصادرات تحت روبي الدولة طريق الائتمان باستثناء عمولة تصل إلى 10٪ من قيمة الفاتورة من صادرات الشاي والتبغ؛ دفع العمولة على الصادرات إلى الاستثمار في الأسهم في المشاريع المشتركة / المملوكة بالكامل الشركات التابعة في الخارج من الشركات الهندية؛ وتحويلات إيرادات الفوائد على الأموال المحتفظ بها في نظام الروبية الخاصة غير المقيمة (الحساب) والدفع المتعلق ب "خدمات معاودة الاتصال" للهواتف. (المعاملات الجارية في الحسابات الجارية)، 2000 - الإخطار [غسر No. 381 (E)] المؤرخ 3 مايو 2000 والجدول الثالث المنقح للقواعد كما هو مبين في الإخطار G. S.R. 426 (E) المؤرخة 26 مايو 2018 متوفرة في الجريدة الرسمية وكذلك كمرفق لتوجيهنا الرئيسي بشأن "تسهيلات تحويلات أخرى" المتاحة على موقعنا على الانترنت rbi. in. تحاول هذه الأسئلة الشائعة وضع الاستعلامات الشائعة التي يكون لدى المستخدمين حول هذا الموضوع بسهولة فهم اللغة. ومع ذلك، من أجل إجراء معاملة، يمكن الإشارة إلى قانون إدارة العملات الأجنبية لعام 1999 (فيما) والأنظمة / القواعد الصادرة أو التوجيهات الصادرة بموجبه.
س 1. من هو الوكيل المعتمد (أد)؟
الجواب. الوكيل المعتمد (أد) هو أي شخص مصرح له على وجه التحديد من قبل البنك الاحتياطي بموجب القسم 10 (1) من فيما، 1999، للتعامل في النقد الأجنبي أو الأوراق المالية الأجنبية (قائمة أدس متاحة على rbi. in) وعادة ما تشمل البنوك .
س 2. من أذن من قبل البنك الاحتياطي لبيع العملات الأجنبية لأغراض السفر؟
الجواب. ويمكن شراء النقد الأجنبي من أي شخص مرخص له، مثل مصرف الفئة الأولى من الفئة أد و الفئة الثانية من الفئة الثانية. ويسمح أيضا للمتقدمين بأموال كاملة (ففمس) بالإفراج عن تبادل للزيارات التجارية والخاصة.
س 3. كم يمكن تحويل العملة الأجنبية نقدا للسفر إلى الخارج؟
الجواب. ويسمح للمسافرين الذين يذهبون إلى جميع البلدان عدا (أ) و (ب) أدناه بشراء أوراق نقدية / عملات نقدية فقط تصل إلى 3000 دولار أمريكي لكل زيارة. يمكن أن يتم مبلغ الرصيد في شكل بطاقات قيمة مخزن، الاختيار المسافرين أو مشروع المصرفي. والاستثناءات من ذلك هي: (أ) المسافرين الذين يسيرون إلى العراق وليبيا الذين يستطيعون صرف النقد الأجنبي في شكل أوراق نقدية وعملات نقدية لا تتجاوز 000 5 دولار أمريكي أو ما يعادلها لكل زيارة؛ (ب) المسافرين الذين يسافرون إلى جمهورية إيران الإسلامية والاتحاد الروسي وسائر جمهوريات رابطة الدول المستقلة الذين يستطيعون صرف كامل النقد الأجنبي (يصل إلى 000 250 دولار من دولارات الولايات المتحدة) في شكل أوراق نقدية أو عملات نقدية. بالنسبة للمسافرين الذين يتقدمون للحج / العمرة، قد يتم الإفراج عن كامل مبلغ الاستحقاق (250،000 دولار أمريكي) نقدا أو حتى الحد النقدي المحدد من قبل لجنة الحج في الهند من قبل أدس و ففمس.
س 4. كم العملة الهندية يمكن جلبها في حين يأتي إلى الهند؟
الجواب. ويمكن لمقيم في الهند، الذي خرج من الهند في زيارة مؤقتة، أن يدخل الهند وقت عودته من أي مكان خارج الهند (بخلاف نيبال وبوتان)، وتلاحظ أوراق نقدية من حكومة الهند ومذكرات بنك الاحتياطي الهندي بحد أقصى لا يتجاوز 000 25 روبية هندية. ويجوز للشخص أن يلجأ إلى الهند من نيبال أو بوتان، وتلاحظ الأوراق النقدية لحكومة الهند وبنك الاحتياطي الهندي، في تسمية لا تتجاوز 100 روبية. أي شخص مقيم خارج الهند، وليس مواطنا من باكستان وبنغلاديش، وكذلك ليس مسافر قادم من والذهاب إلى باكستان وبنغلاديش، وزيارة الهند قد جلب إلى الهند أوراق العملة من حكومة الهند والبنك الاحتياطي الهندي تلاحظ ما يصل إلى مبلغ لا يتجاوز روبية. 25،000 أثناء دخول فقط من خلال المطار. أي شخص مقيم في الهند كان قد ذهب إلى باكستان و / أو بنغلاديش في زيارة مؤقتة، قد جلب إلى الهند في وقت عودته، وتلاحظ العملات من حكومة الهند والبنك الاحتياطي الهندي تلاحظ تصل إلى مبلغ لا يتجاوز روبية. 10،000 للشخص الواحد.
س 5. كم من النقد الأجنبي يمكن جلبها في أثناء زيارة الهند؟
الجواب. يمكن للشخص القادم إلى الهند من الخارج أن يجلب معه النقد الأجنبي دون أي حد. غير أنه إذا كانت القيمة الإجمالية للعملة الأجنبية في شكل أوراق نقدية أو أوراق نقدية أو شيكات سياحية تجاوزت 000 10 دولار أمريكي أو ما يعادلها و / أو أن قيمة العملة الأجنبية وحدها تتجاوز 000 5 دولار أمريكي أو ما يعادلها، إلى سلطات الجمارك في المطار في نموذج إعلان العملة (سدف)، لدى وصوله إلى الهند.
س 6. هل يمكن للمرء أن يدفع نقدا يعادل روبية كاملة من النقد الأجنبي يجري شراؤها للسفر إلى الخارج؟
الجواب. ويمكن شراء النقد الأجنبي للسفر إلى الخارج من شخص مرخص له مقابل مبلغ روبية نقدا أقل من 000 50 روبية. ومع ذلك، إذا كان بيع النقد الأجنبي مقابل مبلغ يعادل 50،000 روبية / فما فوق، يجب أن يتم السداد بالكامل عن طريق شيك / شيك مصرفي / أمر الدفع / مشروع الطلب / بطاقة السحب الآلي / بطاقة الائتمان / المدفوعة مسبقا بطاقة فقط.
س 7. هل هناك أي إطار زمني للمسافر الذي عاد إلى الهند لتسليم النقد الأجنبي؟
الجواب. وعند العودة من رحلة أجنبية، يطلب من المسافرين تسليم العملات الأجنبية غير المنفقة المحتفظ بها في شكل أوراق نقدية وشيكات سياحية خلال 180 يوما من العودة. ومع ذلك، فهي حرة في الاحتفاظ بالعملات الأجنبية تصل إلى 2000 دولار أمريكي، في شكل أوراق نقدية بالعملات الأجنبية أو المساهمين الأساسيين لاستخدامها في المستقبل أو الائتمان لحساباتها المحلية (العملات المحلية) [رك (المحلية)].
س 8. هل يجب تسليم العملات الأجنبية إلى وكيل معتمد عند عودته من الخارج؟
الجواب. يمكن للسكان عقد العملات الأجنبية دون أي حد.
س 9. هل هناك أي فئة من الزيارات التي تتطلب موافقة مسبقة من البنك الاحتياطي أو حكومة الهند؟
الجواب. وينبغي لفرق الرقص والفنانين وما إلى ذلك، الذين يرغبون في القيام بجولات ثقافية في الخارج، الحصول على موافقة مسبقة من وزارة تنمية الموارد البشرية (وزارة التعليم والثقافة)، حكومة الهند، نيودلهي.
س 10. ما إذا كان الإذن مطلوبا للحصول على منحة / تبرع من الخارج بموجب قانون تنظيم المساهمة الأجنبية لعام 1976؟
الجواب. ويخضع قانون تنظيم المساهمة الأجنبية لعام 1976 لإدارة وزارة الشؤون الداخلية ويتولى رصده وعنوانه أدناه: شعبة الأجانب، بيت جايسالمر، 26، شارع مانسينغ، نيودلهي - 110011 لا يلزم الحصول على موافقة محددة من المصرف الاحتياطي في هذا الصدد .
س 11. من الذي يسمح له بالحصول على بطاقة الائتمان الدولية (إيسك) وبطاقة الخصم الدولية (إدك) لإجراء معاملات الصرف الأجنبي؟
الجواب. يسمح للبنوك المخول لها التعامل بالعمالت األجنبية بإصدار بطاقات الخصم الدولية التي يمكن استخدامها من قبل فرد مقيم لسحب النقود أو الدفع إلى مؤسسة تجارية في الخارج خالل زيارته للخارج. ولا يمكن استخدام هذه المخلفات إلا في معاملات الحسابات الجارية المسموح بها، ويجب أن يكون استخدام هذه المخلفات ضمن حدود لرس. وبإمكان بنوك أبوظبي أيضا إصدار بطاقة قيمة / بطاقة ائتمان / بطاقة ذكية للمستأجرين المقيمين في زيارة خاصة / تجارية إلى الخارج والتي يمكن استخدامها لتسديد المدفوعات في منشآت تجارية في الخارج وكذلك لرسم النقود من محطات الصراف الآلي. لا يلزم الحصول على إذن مسبق من بنك الاحتياطي لإصدار مثل هذه البطاقات. ومع ذلك، فإن استخدام هذه البطاقات يقتصر على المعاملات الحساب الجاري المسموح به وتخضع ل لرس الحد. الأفراد المقيمون الذين يحتفظون بحساب بالعملة الأجنبية مع وكيل معتمد في الهند أو أحد البنوك في الخارج، على النحو المسموح به بموجب أنظمة الصرف الأجنبي الحالية، أحرار في الحصول على بطاقات الائتمان الدولية الصادرة عن البنوك الأجنبية والوكالات الأخرى ذات السمعة الطيبة. الرسوم التي يتم تحملها ضد البطاقة سواء في الهند أو في الخارج، يمكن أن تغطى من الأموال المحتفظ بها في حساب / حسابات العملة الأجنبية من حامل البطاقة أو من خلال التحويلات المالية، إن وجدت، من الهند فقط من خلال بنك لديه حامل البطاقة الحالي أو حساب التوفير. وينبغي أيضا تحويل الأموال لهذا الغرض مباشرة إلى الوكالة التي تصدر البطاقة في الخارج، وليس إلى طرف ثالث. ويوضح أيضا أن حد الائتمان المطبق سيكون الحد الأقصى الذي تحدده البنوك المصدرة للبطاقة. لا يوجد سقف نقدي يحدده بنك الاحتياطي الهندي للتحويلات، إن وجد، في إطار هذا المرفق. لا يسري الحد الأقصى ل لرس على استخدام المحكمة الجنائية الدولية لدفع الشخص من قبله لقاء مصاريف الاجتماع بينما يكون هذا الشخص في زيارة خارج الهند. ويمكن استخدام مراكز التجارة الدولية / مراكز الهوية الدولية للسفر إلى الخارج في اتصال مع أغراض مختلفة ولجعل المدفوعات الشخصية مثل الاشتراك في المجلات الأجنبية، والاشتراك في الإنترنت، وما إلى ذلك، ومع ذلك، لا يسمح استخدام إيسس / إدك للمعاملات المحظورة المشار إليها في الجدول 1 من فيم (كات) قواعد التعديل لعام 2018 مثل شراء تذاكر اليانصيب والمجلات المحظورة الخ استخدام هذه الأدوات للدفع في النقد الأجنبي في نيبال وبوتان غير مسموح به.
س 12. كم المجوهرات يمكن حملها أثناء الذهاب إلى الخارج؟
الجواب. أخذ المجوهرات الشخصية من الهند وفقا لقواعد الأمتعة، وتحكمها وتديرها دائرة الجمارك، حكومة الهند. وفي حين لا يلزم الحصول على موافقة البنك الاحتياطي في هذه الحالة، يمكن الحصول على الموافقات، إن وجدت، المطلوبة من سلطات الجمارك.
س 13. هل يستطيع المقيمون تقديم الضيافة المحلية لغير المقيمين؟
الجواب. الشخص المقيم في الهند حر في دفع أي مبالغ بالروبية الهندية لتغطية مصاريف الاجتماع، بسبب الصعود إلى الطائرة أو السكن أو الخدمات المتصلة به أو السفر من وإلى الهند أو داخلها، لشخص مقيم خارج الهند، يقوم بزيارة الهند.
س 14. هل يمكن للسكان شراء تذاكر الطيران في الهند لسفرهم لا يلمسون الهند؟
الجواب. ويمكن للمقيمين حجز تذاكرهم في الهند لزيارتهم إلى أي بلد ثالث. على سبيل المثال، يمكن للسكان حجز تذاكر السفر من لندن إلى نيويورك، من خلال شركات الطيران المحلية / الأجنبية في الهند. ومع ذلك، فإن نفس (تذاكر الطيران) ستكون جزءا من استحقاق المسافر الإجمالي ل رس 250،000 دولار أمريكي.
س 15. هل يسمح لأفراد مقيمين بالوفاء بالنفقات الطبية للأقارب المقربين من الهند غير المقيمين في الهند؟
الجواب. عندما تدفع النفقات الطبية المتعلقة بالنسب المقرب من غير المقيمين ["النسبية" على النحو المحدد في القسم 2 (77) من قانون الشركات، 2018) من قبل فرد مقيم، فإن مثل هذا الدفع في طبيعة مقيم في معاملة المقيمين قد تحت بند "الخدمات ذات الصلة بها" بموجب المادة 6 (2) من الإخطار رقم فيما 14 (R) / 2018-رب المؤرخ في 2 مايو 2018.
س 16. هل يمكن لشخص مقيم في الهند أن يحمل أصولا خارج الهند؟
الجواب. وفيما يتعلق بالقسم الفرعي 4 من القسم (6) من قانون إدارة العملات الأجنبية لعام 1999، فإن للشخص المقيم في الهند الحرية في حيازة أو حيازة أو نقل أو الاستثمار بالعملة الأجنبية أو الأمن الأجنبي أو أي ممتلكات غير منقولة تقع خارج الهند إذا كانت هذه العملة أو الأمن أو الممتلكات قد حصل عليها أو امتلكها أو يملكها هذا الشخص عندما كان مقيما خارج الهند أو ورثها من شخص يقيم خارج الهند.
وعلاوة على ذلك، يمكن للشخص المقيم أيضا الحصول على الممتلكات والأصول الأخرى في الخارج بموجب لرس.
(1) "الشخص المقيم في الهند" معرف في القسم 2 (5) من قانون الشؤون المالية، 1999 على النحو التالي:
(1) شخص مقيم في الهند لأكثر من مائة واثنين وثمانين يوما خلال السنة المالية السابقة ولكنه لا يشمل -
(أ) الشخص الذي خرج من الهند أو الذي يقيم خارج الهند، في كلتا الحالتين -
(أ) للعمل أو خارجه خارج الهند، أو.
(ب) للقيام خارج الهند بعمل أو مهنة خارج الهند، أو.
(ج) لأي غرض آخر، في ظروف من شأنها أن تبين اعتزامه البقاء خارج الهند لفترة غير مؤكدة؛
(ب) الشخص الذي جاء إلى الهند أو يقيم فيها، في كلتا الحالتين،
(أ) أو للعمل في الهند، أو.
(ب) للقيام في الهند بعمل أو مهنة في الهند، أو.
(ج) لأي غرض آخر، في ظروف من شأنها أن تبين اعتزامه البقاء في الهند لفترة غير مؤكدة؛
(2) أي شخص أو هيئة مسجلة أو مدرجة في الهند،
'3' مكتب أو فرع أو وكالة في الهند يملكها أو يتحكم فيها شخص مقيم خارج الهند،
(4) مكتب أو فرع أو وكالة خارج الهند يملكها أو يتحكم فيه شخص مقيم في الهند.
المكتب الرئيسي:
3507/6، كيرتي سادان بيلدينغ، بانك ستريت، كارول باغ، نيو ديلهي-110005.
G-15، غروند فلور، سونيجا تاور -1، ديستريكت سينتر، جاناكبوري، ديلهي-110058.
أرونا ناجر:
نيو ساكيا هاوس 193، نيو أرونا ناجر، ماجنو كا تيلا، ديلهي-110054.

فوريكس ربي فاقس.
يحتوى.
خيارات البحث المدرجة على اللوحة اليمنى لاستخراج قائمة أسئلة وأجوبة خاصة.
29 فبراير 2018 التحوط من مخاطر الأسعار في السلع.
17 يناير 2018 ملامح مختلف أنظمة الإيداع المتاحة للهنود غير المقيمين.
20 يناير 2018 نظام التحويلات المحرر.
03 يوليو 2018 العائد السنوي على الخصوم واألصول األجنبية) العائد على عائدات األصول (بموجب قانون النقد األجنبي.
جولاي 02، 2018 كومبليكينغ أوف كونتراكتيفس وندر فيما، 1999.
يونيو 22، 2018 حساب فتح من قبل المواطنين الأجانب والسياح الأجانب.
11 يوليو 2018 اقتناء ونقل الممتلكات غير المنقولة في الهند من قبل شخص مقيم.
جول 06، 2018 الاتحاد الآسيوي للتخليص.
أوكت 09، 2018 حساب صرف العملات الأجنبية إيرنر (إيفك).
17 يناير 2018 تسهيلات للهنود غير المقيمين والأشخاص من أصل هندي.
26 يونيو 2018 الاستثمارات الأجنبية في الهند.
20 يناير 2018 تسهيلات الفوركس للمقيمين (الأفراد)
18 مارس 2018 الاستثمار المباشر في الخارج.
جول 04، 2018 مخطط تجار معتمد الفئة الأولى (أد) البنوك، تجار المعتمدة.
الفئة الثانية وكامل المال المغيرون تعيين وكلاء / الامتياز ل.
إجراء تغيير الأموال المقيدة.
التحوط من مخاطر الأسعار في السلع.
(كما في 29 فبراير 2018)
ويسمح للشخص المقيم في الهند بالدخول في عقد في بورصة للسلع الأساسية أو سوق خارج الهند.
مخاطر أسعار التحوط في السلع المستوردة / المصدرة، المعاملات المحلية، مخاطر الشحن، وما إلى ذلك، من خلال أذن.
تاجر الفئة - I (أد الفئة وندش]؛ I) البنوك. دور بنوك التاجر المعتمدة هنا هو في المقام الأول لتوفير.
تسهيالت تحويل العمالت األجنبية إلى متطلبات الهامش من وقت آلخر، رهنا بذلك.
التحقق من التعرض الأساسي. هناك قناتان يمكن للمقيمين من خلالها إجراء التحوط.
. تجار مؤهلون & [رسقوو]؛ مسار الموافقة على الطريق ومحمية بنك الاحتياطي. وبغية تحقيق قدر أكبر من الوضوح.
بشأن القواعد / المبادئ التوجيهية التي تحكم التحوط من مخاطر أسعار السلع الأساسية، وتوضيحات بشأن العملية ومختلفها.
فيما يلي المسائل التشغيلية المتعلقة بتحوط السلع:
1. من يستطيع التحوط؟
الشخص المقيم في الهند، الذي لديه التعرض للسلع ويواجه مخاطر بسبب تقلب أسعار السلع الأساسية، ويمكن.
التحوط من مخاطر الأسعار في البورصات الدولية / الأسواق الدولية، وذلك باستخدام منتجات التحوط مثل العقود الآجلة.
والخيارات المتاحة، وهي المشتقات المتداولة في البورصة والمشتقات خارج البورصة (أوتك) على النحو المسموح به من قبل البنك الاحتياطي.
من وقت لآخر. موافقة مسبقة من البنك الاحتياطي / فئة أد - I البنك هو مطلوب.
2. ما هي مرافق التحوط المتاحة لشركات النفط؟
وقد سمح البنك االحتياطي، من خالل طرق الموافقة / التفويض، بالمرافق التالية لتحوط أسعار النفط:
التحوط من التعرضات الناشئة عن استيراد النفط الخام وتصدير المنتجات البترولية على أساس.
التحوط من التعرض الناجم عن استيراد النفط الخام على أساس الأداء السابق حتى 50 في المائة من.
حجم الواردات الفعلية خلال العام السابق أو 50 في المائة من متوسط ​​حجم الواردات خلال الفترة نفسها.
السنوات المالية الثلاث السابقة، أيهما أعلى.
التحوط من المخزون يصل إلى 50 في المائة من الأحجام في الربع السابق للربع السابق.
التحوط من التعرضات الناجمة عن الشراء المحلي من الخام وبيع منتجات بترو على أساس.
والتحوط من التعرضات على استيراد / تصدير وقود الطائرات وشراء الوقود النفاث محليا من قبل المستعملين،
شركات الطيران المحلية.
3- ما هي الكيانات المسموح بها للتحوط من مخاطر أسعار النفط؟
ويسمح لشركات تكرير النفط والتسويق المحلية بالتحوط من مخاطر أسعار النفط الخام.
المنتجات النفطية في الأسواق الخارجية / الأسواق لتعديل أثر التقلبات السلبية في الأسعار.
ويسمح أيضا للمستخدمين المحليين لوقود التوربينات الجوية (أتف) بالتحوط من مخاطر أسعارهم على أتف في الخارج.
التبادل / الأسواق خارج البورصة.
4- ما هي السلع، عدا النفط والمنتجات النفطية التي يمكن التحوط فيها.
وقد سمح البنك الاحتياطي للشركات بالتحوط من مخاطر الأسعار على الاستيراد / التصدير فيما يتعلق بأي منها.
السلع (باستثناء الذهب والفضة والبلاتين) في أسواق السلع الدولية / الأسواق تحت.
الطريق المفوضة. ويجوز للشركة المؤهلة المهتمة بتحوط مخاطر الأسعار فيما يتعلق باستيرادها / تصديرها.
تنطبق على أي مصرف الفئة الأولى - أد.
كما سمح البنك الاحتياطي للشركات المدرجة في البورصة المعترف بها بالتغطية على السعر.
الطريق المفوضة. ويجوز للشركة المؤهلة المهتمة بتحوط مخاطر الأسعار فيما يتعلق بالسلع المذكورة أعلاه.
تنطبق على أي مصرف الفئة الأولى - أد.
.5 ما هي التسهيالت التحوطية المسموح بها للمنشآت في المناطق االقتصادية الخاصة) سيز (؟
ويسمح للبنوك من الفئة "I" بالسماح للكيانات في المناطق الاقتصادية الخاصة بإجراء معاملات التحوط.
في أسواق / أسواق السلع الأساسية في الخارج للتحوط من مخاطر أسعار السلع الأساسية المتعلقة بالاستيراد والتصدير. هذه.
لا يسمح بالمعاملات إلا عندما تكون الوحدة في المنطقة الاقتصادية الخاصة معزولة تماما عن الاتصالات المالية معها.
أو الوالد أو الفرع في البر الرئيسي أو داخل المناطق الاقتصادية الخاصة فيما يتعلق بمعاملات الاستيراد والتصدير.
1. ما هو مشتق الشحن؟
إن مشتقات الشحن هي أداة مالية تستمد قيمتها من المستويات المستقبلية لمعدالت الشحن، مثل & كوت؛ الجافة.
السائبة ومثل. وأسعار نقل النفط وناقلات النفط. وتستخدم مشتقات الشحن أساسا من قبل المستعملين النهائيين مثل أصحاب السفن و.
والمنازل الكبيرة، والموردين مثل تكرير النفط وشركات التسويق لإدارة المخاطر والتحوط ضد السعر.
التقلب في سلسلة التوريد.
2. ما هي الكيانات التي يسمح بها بنك الاحتياطي الأسترالي للتحوط من مخاطر الشحن؟
شركات تكرير النفط والتسويق، وشركات الشحن وغيرها من الشركات التي لديها نفقات عامة كبيرة.
على أساس عنصر الشحن، للتحوط من مخاطر الشحن في الأسواق الدولية / الأسواق الخارجية.
أساس التعرضات الأساسية. ويسمح لشركات النفط والشحن بالتحوط من خلال التفويض.
الطريق من خلال الفئة أد - i البنوك والشرکات الأخرى التي لديها التعرض للمخاطر المسموح بها للتحوط بعد.
والحصول على موافقة مسبقة من البنك الاحتياطي.
ملامح مختلف أنظمة الإيداع المتاحة للهنود غير المقيمين (نريس)
ملامح مختلف أنظمة الإيداع المتاحة للهنود غير المقيمين (نريس) 1.
مخطط [فنر (B) حساب]
روبية حسابية.
مخطط الحساب [حساب نرو]
الجنسية / الملكية.
موافقة مسبقة من ربي)
موافقة مسبقة من ربي)
على جميع أصحاب الحسابات.
هم أشخاص من الجنسية الهندية.
المقيم المقرب (قريب.
كما هو معرف في القسم 6 من.
قانون الشركات، 1956).
& [رسقوو]؛ السابق أو الناجي و [رسقوو]؛ أساس. ال.
يجب أن يكون الأقرب المقرب المقيم.
مؤهلة لتشغيل الحساب.
باعتبارها صاحب توكيل في.
وفقا لمدى.
تعليمات خلال فترة الحياة.
من صاحب حساب نري / بيو.
قد يعقد بالاشتراك مع السكان.
قدمت كل حساب.
أصحابها هم أشخاص من الهند.
أو الجنسية؛
المقيم المقرب.
(النسبية كما هو محدد في القسم.
6 من قانون الشركات، 1956)
على & [رسقوو]؛ السابق أو الناجي و [رسقوو]؛ أساس.
المقيم المقرب.
يكون مؤهلا لتشغيل.
حساب كقوة.
المحامي وفقا لذلك.
مع تعليمات موجودة خلال.
وقت الحياة من نري / بيو.
والعملة الأجنبية التي هي بحرية.
(بخلاف الشخص المقيم في نيبال.
وبوتان). الأفراد / الكيانات.
بنغلاديش / الجنسية الباكستانية /
الملكية، فضلا عن السابق.
تتطلب الشركات في الخارج 2 الشركات.
موافقة مسبقة من البنك الاحتياطي.
1) الدخل الحالي 2) حتى 1 دولار أمريكي (واحد)
مليون دولار في السنة المالية (نيسان / أبريل - آذار / مارس)،
لأي غرض بونافيد، للخروج من.
الأرصدة في الحساب، على سبيل المثال، البيع.
عائدات الأصول في الهند التي حصل عليها.
طريقة الشراء / الميراث / الإرث.
بما في ذلك الأصول المكتسبة من.
تسوية تخضع لبعض.
وليس أكثر من 5 سنوات.
التعاقد الفعال من.
بسبب، حركة، إلى داخل، الهند، برغم، أون.
23 نوفمبر 2018، الفائدة.
في حدود السقف.
معدل ليبور / مقايضة الفائدة زائد.
125 نقطة أساس ل.
آجال استحقاق (مقابل.
ليبور / معدلات المبادلة بالإضافة إلى 100.
نقطة أساس فعالة من وثيقة.
من العمل في نوفمبر 15،
إدارة الأعمال المصرفية.
العمليات والتنمية،
بنك الاحتياطي الهندي :
أسعار الفائدة على الودائع الادخارية.
تحت العادية غير المقيمين (نرو)
الحسابات. ومع ذلك، أسعار الفائدة.
التي تقدمها البنوك على ودائع نرو.
لا يمكن أن تكون أعلى من تلك التي تقدمها.
على روبية محلية قابلة للمقارنة.
أسعار الفائدة من الادخار & [رسقوو]؛ s.
والودائع لأجل لأجل الاستحقاق.
من سنة واحدة وما فوق.
أسعار الفائدة التي تقدمها البنوك.
على ودائع نري لا يمكن أن يكون.
أعلى من تلك التي تقدمها.
لهم على محلية مماثلة.
تدفع الفائدة في غضون.
سقف معدلات المبادلة ل.
بالإضافة إلى 125 نقطة أساس. إلى عن على.
عائمة معدل الودائع، و.
تكون فترة إعادة تعيين الفائدة ستة.
تفويض.
مقيم من قبل.
شروط التوكيل هي.
يقتصر على سحب ل.
المدفوعات المحلية المسموح بها أو.
التحويلات إلى صاحب الحساب.
شروط التوكيل هي.
يقتصر على سحب ل.
المدفوعات المحلية المسموح بها أو.
التحويلات إلى الحساب.
يقتصر التوكيل على.
السحب للمناطق المحلية المسموح بها.
المدفوعات في روبية، التحويلات من.
الدخل الحالي لصاحب الحساب.
صاحب الحساب نفسه من خلال وضعها الطبيعي.
تخضع التحويلات إلى الحد الأقصى.
(1) مليون دولار في السنة المالية.
ط) إلى الحساب.
يسمح فقط تصل إلى Rs.100.
ط) إلى الحساب.
(شريطة عدم تحويل أي أموال.
والعودة إلى الهند وتستخدم.
(شريطة عدم تحويل أي أموال.
والعودة إلى الهند وتستخدم.
(لم تقدم أي أموال.
وتحويلها مرة أخرى إلى الهند وهي.
المستخدمة في الخارج فقط)
(لم تقدم أي أموال.
وتحويلها مرة أخرى إلى الهند وهي.
المستخدمة في الخارج فقط)
ط) إلى الحساب.
يسمح تصل إلى Rs.100 كهس.
ط) إلى الحساب.
ط) الأغراض الشخصية أو ل.
تحمل على الأنشطة التجارية * تحمل الأعمال.
2) الاستثمار المباشر في الهند.
على أساس عدم العودة إلى الوطن.
المساهمة في رأس المال.
الشركات / الشركات الهندية.
على أساس عدم الإعادة إلى الوطن.
طريقة المساهمة في.
عاصمة الشركات الهندية /
الهند لاستخدامه السكني الخاص.
(يرجى الرجوع إلى الفقرة 9 من.
3) اقتناء شقة / منزل في.
الجدول 2 إلى فيما 5).
الهند لسكنه الخاص.
استعمال. (يرجى الرجوع إلى الفقرة 6 (أ)
من Table1 إلى فيما 5).
المرافق الشخصية الشخصية.
أو لأغراض.
الأنشطة التجارية *. (رجاء.
يرجى الرجوع إلى الفقرة 9 من الجدول 2 إلى.
المرافق الشخصية الشخصية.
أو لأغراض.
الأنشطة التجارية *. (رجاء.
يرجى الرجوع إلى الفقرة 6 (ب) من المادة. 1 ل.
حامل وثالث.
(.
(.
للاستثمار في قطاع العقارات.
أو لأي غرض آخر يشير إلى عزمه على البقاء في نيبال وبوتان لفترة غير مؤكدة.
سيستمر الحساب كحساب مقيم. ولا ينبغي أن يصنف هذا الحساب على أنه روبية غير مقيمة (عادية).
هم مواطنون من الهند أو من أصل هندي، بشرط تحويل الأموال اللازمة لفتح هذه الحسابات إلى النقد الأجنبي الحر.
ولا يمكن تحويل الفوائد المكتسبة في حسابات المعهد الوطني للإحصاء / فنر (B) إلا بالروبية الهندية إلى المقيمين غير المقيمين والمقيمين في بيو في نيبال.
لحساب شخص مقيم في نيبال وبوتان.
د. وقد أبلغت اللوائح المتعلقة بمختلف مخططات الإيداع المتاحة للهنود غير المقيمين.
الإخطار رقم إفما 5 المؤرخ 3 أيار / مايو 2000، بصيغته المعدلة من وقت لآخر. الإخطارات ذات الصلة و A. P. (دير سلسلة)
التعاميم متوفرة على موقعنا على الانترنت [rbi. in & رار. ملف سيتماب & رار؛ فيما & رار؛ الإخطارات / A. P. (سلسلة دير) التعميمات]. ال.
التعميم الرئيسي على الروبية العادية غير المقيمين (نرو) حساب [rbi. in & رار. ملف سيتماب & رار؛ التعاميم الرئيسية] قد تكون أيضا.
بالإشارة إلى. تفاصيل معدل الفائدة على الحسابات المختلفة، متوفرة في & لدكو؛ ماستر التعميم على أسعار الفائدة على.
روبية ودائع في المحلية، غير المقيمين العادية (نرو) وغير المقيمين (الخارجية) (نري) الحسابات & رديقو؛ و.
& لدكو؛ تعميم تعميم التعليمات المتعلقة الودائع التي عقدت في فنر (B) حسابات & رديقو؛ صادرة عن قسمنا المصرفي.
العمليات والتنمية، وهي متاحة على موقعنا على الانترنت [rbi. in & رار. ملف سيتماب & رار؛ التعاميم الرئيسية].
ه. أد كاتيغوري & نداش؛ يجوز للبنوك والمصارف المرخصة أن تقيد عائدات حسابات الشيكات / مسودات الطلب /
الصادرة لصاحب حساب نري معتمدة من قبل شهادة التحصيل الصادرة عن الفئة أد - I / الفئة الثانية.
F. أد كاتيغوري & نداش؛ يجوز للبنوك والمصارف المرخص لها أن تسمح بتحويل عائدات استحقاق ودائع البنك إلى الودائع الثالثة.
الأطراف خارج الهند، شريطة أن يكون المعتمد مصرحا به من قبل صاحب الحساب على وجه الخصوص، والوكيل المعتمد هو.
راض عن الممنوعات من الصفقة.
بتاريخ 3 مايو 2000. قواعد إدارة الصرف الأجنبي (الإيداع)، 2000].
هيئة الشركات في الخارج (أوب) يعني شركة، شركة شراكة والمجتمع وغيرها من الشركات المملوكة بشكل مباشر أو غير مباشر إلى حد.
ما لا يقل عن ستين في المائة من الهنود غير المقيمين، ويشمل الثقة الخارجية التي لا يقل عن ستين في المئة من الفائدة المفيدة التي يحتفظ بها الهنود غير المقيمين بشكل مباشر أو غير مباشر ولكن لا رجعة فيه، والتي كانت موجودة في 16 سبتمبر 2003، وكان مؤهلا للاضطلاع بالمعاملات .
وفقا للإذن العام الممنوح بموجب لوائح إدارة العملات الأجنبية.
مع مراعاة القواعد المعتادة التي تنطبق على الحسابات المقيمة، لأغراض شخصية أو للقيام بأنشطة تجارية إلا لغرض.
أو إعادة النشاط الزراعي / الزراعي أو الاستثمار فيه أو الاستثمار في قطاع العقارات.
رهنا بشروط مثل (1) يتم استخدام القروض فقط لتلبية متطلبات المقترض الشخصية و / أو الغرض التجاري وليس ل.
(2) الأنظمة المتعلقة بالهامش ومعدل الفائدة.
المنصوص عليها من قبل البنك الاحتياطي من وقت لآخر، و (3) القواعد والاعتبارات المعتادة كما هو مطبق في حالة.
تسري السلف على التجارة / الصناعة على هذه القروض / التسهيلات.
(تحديث حتى 20 يناير 2018)
وكان مصرف الاحتياطي الهندي قد أعلن عن خطة التحويلات المالية (الخطة) في فبراير / شباط 2004 كخطوة.
نحو مزيد من تبسيط وتحرير تسهيلات الصرف الأجنبي المتاحة للأفراد المقيمين. وفقا ل.
النظام، يجوز للأفراد المقيمين تحويل ما يصل إلى 200،000 دولار أمريكي في السنة المالية لأي رأس مال مسموح به والحساب الجاري.
المعاملات أو مزيج من الاثنين معا. وقد تم تشغيل هذا البرنامج في إطار نشرة أ. ب. (سلسلة دير) رقم 64 بتاريخ شباط / فبراير.
Q.1. ما هو برنامج التحويالت التحريرية البالغ 200،000 دوالر أمريكي؟
. وبموجب نظام التحویلات المحررة، یسمح لجمیع الأفراد المقیمین، بمن فیھم القاصرین، بالمجانیة.
200،000 دولار أمريكي في السنة المالية (أبريل وندش]؛ مارس) لأي معاملة حالية أو حساب رأس المال المسموح به أو مزيج من.
. وبموجب هذا النظام، يمكن للأفراد المقيمين حيازة أو حيازة ممتلكات غير منقولة أو أسهم أو أدوات دين أو أي منها.
أصول أخرى خارج الهند، دون الحصول على موافقة مسبقة من البنك الاحتياطي. يمكن للأفراد أيضا فتح، والحفاظ على وعقد الأجانب.
حسابات العملات مع البنوك خارج الهند لتنفيذ المعاملات المسموح بها بموجب البرنامج.
س 3. ما هي المواد المحظورة بموجب المخطط؟
ط) التحويلات لأي غرض محظور على وجه التحديد في الجدول الأول (مثل شراء تذاكر اليانصيب / حصص الاجتياح، محظورة.
والمجلات، وما إلى ذلك) أو أي بند مقيد في إطار الجدول الثاني لإدارة العملات الأجنبية (معاملات الحساب الجاري)
(2) التحويلات من الهند للهامش أو الهامش تدعو إلى التبادلات الخارجية / الطرف المقابل في الخارج؛
'3' تحويلات مالية لشراء شركات مصرفية فكرية تصدرها الشركات الهندية في السوق الثانوية الخارجية؛
'4' التحويلات المالية للمتاجرة بالعملات الأجنبية في الخارج؛
(5) تحويل أحد الأفراد المقيمين لإقامة شركة في الخارج؛
'6' التحويلات المالية بصورة مباشرة أو غير مباشرة إلى باكستان وبوتان وموريشيوس ونيبال؛
(7) التحويلات المالية بشكل مباشر أو غير مباشر إلى البلدان التي حددتها فرقة العمل المعنية بالإجراءات المالية (فاتف) على أنها "غير تعاونية".
البلدان والأقاليم & رديقو ؛، من وقت لآخر؛ و.
'8' التحويلات المالية بصورة مباشرة أو غير مباشرة إلى الأفراد والكيانات التي تعتبر خطرا كبيرا لارتكاب أفعال.
الإرهاب كما نصح البنك الاحتياطي بشكل منفصل بالبنوك.
Q.4. ما إذا كان مرفق لرس هو بالإضافة إلى المرافق القائمة المفصلة في الجدول الثالث تحت التحويلات؟
نعم، مرفق تحت البرنامج هو بالإضافة إلى تلك المتاحة بالفعل للسفر الخاص، والسفر في الأعمال التجارية، والدراسات،
والعلاج الطبي، وما إلى ذلك، كما هو موضح في الجدول الثالث من قواعد إدارة العملات الأجنبية (المعاملات الجارية الحساب)
ويمكن أيضا استخدام هذه الخطة في هذه الأغراض.
ومع ذلك، لا يمكن إجراء تحويلات للهدايا والتبرعات بشكل منفصل ويجب أن تتم في إطار البرنامج فقط.
وبناء على ذلك، يمكن للأفراد المقيمين تحويل الهدايا والهبات إلى 200،000 دولار أمريكي في السنة المالية تحت.
من قانون الشركات، 1956] عن طريق الشيكات / النقل الإلكتروني عبر الحدود الإجمالية البالغة 200،000 دولار أمريكي لكل مالي.
سنة للفرد المقيم، وينبغي أن يقيد المبلغ الموهوبين لحساب نرو المستفيد. فرد.
المقيم يمكن أن تقرض المال عن طريق شيك عبر / نقل الإلكترونية إلى غير المقيمين الهندي (نري) / شخص من أصل هندي.
(تعني النسبية كما هو معرف في القسم 6 من قانون الشركات، 1956] ضمن الحد الإجمالي البالغ 200،000 دولار أمريكي.
في السنة المالية بموجب خطة التحویلات المحررة، للوفاء بالمتطلبات الشخصیة أو التجاریة في المقترض.
الهند، رهنا بالشروط. وينبغي أن يكون القرض بدون فوائد ويكون له أجل استحقاق لا يقل عن سنة واحدة ولا يمكن تحويله.
س 5. هل الأفراد المقيمون في إطار هذا البرنامج يحتاجون إلى إعادة الفوائد / الأرباح المستحقة.
الودائع / الاستثمارات في الخارج، علاوة على المبلغ الأصلي؟
. يمكن للمستثمرين الأفراد المقيمين الاحتفاظ وإعادة استثمار الدخل المكتسب من الاستثمارات التي تتم في إطار البرنامج.
ولا يطلب من السكان إعادة الأموال أو الإيرادات المتأتية من الاستثمارات التي تتم بموجب الخطة إلى الوطن.
Q.6. ھل التحویلات في إطار البرنامج علی أساس إجمالي أو صافي (صافي الإعادة إلی الوطن من الخارج)؟
س 7 - هل يمكن توحيد التحويلات في إطار المرفق فيما يتعلق بأفراد الأسرة؟
. ويمكن توحيد التحويالت في إطار المرفق فيما يتعلق بأفراد األسرة الخاضعين ألفراد العائلة.
وفقا لشروط وأحكام البرنامج.
Q. 8. Can one use the Scheme for purchase of objects of art (paintings, etc.) either directly or through auction house?
. Remittances under the Scheme can be used for purchasing objects of art subject to compliance with the extant Foreign.
Trade Policy of the Government of India and other applicable laws.
Q.9. Is the AD required to check permissibility of remittances based on nature of transaction or allow the same based.
on remitters declaration?
. AD will be guided by the nature of transaction as declared by the remitter and will certify that the remittance is in.
conformity with the instructions issued by the Reserve Bank, in this regard from time to time.
Q.10. Can remittance be made under this Scheme for acquisition of ESOPs?
. The Scheme can also be used for remittance of funds for acquisition of ESOPs.
Q.11. Is this scheme in addition to acquisition of ESOPs linked to ADR/GDR (i. e USD 50,000/- for a block of 5 calendar.
Q.12. Is this Scheme is in addition to acquisition of qualification shares (i. e. USD 20,000 or 1% of paid up capital of.
overseas company, whichever is lower)?
. The remittance under the Scheme is in addition to acquisition of qualification shares.
Q.13. Can a resident individual invest in units of Mutual Funds, Venture Funds, unrated debt securities, promissory.
notes, etc., under this scheme?
. A resident individual can invest in units of Mutual Funds, Venture Funds, unrated debt securities, promissory notes, etc.
under this Scheme. Further, the resident can invest in such securities through the bank account opened abroad for the.
purpose under the Scheme.
Q.14. Can an individual, who has availed of a loan abroad while as a non-resident Indian can repay the same on return.
to India, under this Scheme as a resident?
This is permissible.
Q. 15. Is it mandatory for resident individuals to have PAN number for sending outward remittances under the.
It is mandatory to have PAN number to make remittances under the Scheme.
Q. 16. In case a resident individual requests for an outward remittance by way of issuance of a demand draft (either in.
transactions) at the time of his private visit abroad, whether the remitter can effect such an outward remittance.
Such outward remittance in the form of a DD can be effected against the declaration by the resident individual in the.
format prescribed under the Scheme.
Q. 17. Are there any restrictions on the frequency of the remittance?
. There is no restriction on the frequency. However, the total amount of foreign exchange purchased from or remitted.
through, all sources in India during a financial year should be within the cumulative limit of USD 200,000.
Q.18. What are the requirements to be complied with by the remitter?
The individual will have to designate a branch of an AD through which all the remittances under the Scheme will be.
مصنوع. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the.
remittance. If the applicant seeking to make the remittance is a new customer of the bank, Authorised Dealers should carry out.
due diligence on the opening, operation and maintenance of the account. Further, the AD should obtain bank statement for the.
previous year from the applicant to satisfy themselves regarding the source of funds. If such a bank statement is not available,
copies of the latest Income Tax Assessment Order or Return filed by the applicant may be obtained. He has to furnish an.
application-cum-declaration in the specified format (Annex) regarding the purpose of the remittance and declare that the funds.
belong to him and will not be used for the purposes prohibited or regulated under the Scheme.
Q. 19. Can an individual, who has repatriated the amount remitted during the financial year, avail of the facility once.
any further remittances under this scheme, even if the proceeds of the investments have been brought back into the country.
Q.20. Can remittances be made only in US Dollars?
The remittances can be made in any freely convertible foreign currency equivalent to USD 200,000 in a financial year.
Q. 21. In the past resident individuals could invest in overseas companies listed on a recognised stock exchange.
abroad and which has the shareholding of at least 10 per cent in an Indian company listed on a recognised stock.
exchange in India. Does this condition still exist?
Investment by resident individual in overseas companies is subsumed under the Scheme of USD 200,000. ال.
requirement of 10 per cent reciprocal shareholding in the listed Indian companies by such overseas companies has since been.
Guidelines for Financial Intermediaries.
Q. 22. Are intermediaries expected to seek specific approval for making overseas investments available to clients?
. Banks including those not having operational presence in India are required to obtain prior approval from the Department.
of Banking Operations and Development, Central Office, Reserve Bank of India, Central Office Building, Shahid Bhagat Singh.
Marg, Mumbai, for soliciting deposits for their foreign/overseas branches or for acting as agents for overseas mutual funds or.
Q.23. Are there any restrictions on the kind/quality of debt or equity instruments an individual can invest in?
. No ratings or guidelines have been prescribed under the Liberalised Remittance Scheme. However, the individual.
investor is expected to exercise due diligence while taking a decision regarding the investments under the Scheme.
Q. 24. Whether credit facilities in Indian Rupees or foreign currency would be permissible against security of such.
No. The Scheme does not envisage extension of credit facility against the security of the deposits. Further, the banks.
should not extend any kind of credit facilities to resident individuals to facilitate outward remittances under the Scheme.
Q. 25. Can bankers open foreign currency accounts in India for residents under the Scheme?
No. Banks in India cannot open foreign currency accounts in India for residents under the Scheme.
Q. 26. Can an Offshore Banking Unit (OBU) in India be treated on par with a branch of the bank outside India for the.
purpose of opening of foreign currency accounts by residents under the Scheme?
No. For the purpose of the Scheme, an OBU in India is not treated as an overseas branch of a bank in India.
For further details/guidance, please approach any bank authorised to deal in foreign exchange or contact Regional Offices of.
the Foreign Exchange Department of the Reserve Bank.
200,000 for Resident individuals.
(To be completed by the applicant)
I. Details of the applicant.
II. Details of the foreign exchange required.
IV. Nature of instrument.
V. Details of the remittance made under the Scheme in the financial year (April - March) 20.. – 20..
السادس. Details of the Beneficiary.
(* Required only when the remittance is to be directly credited to the bank account of the beneficiary)
This is to authorize you to debit my account and effect the foreign exchange remittance/ issue a draft as detailed.
في الاعلى. (strike out whichever is not applicable).
through, all sources in India during the financial year as per item No. V of the Application, including loan extended or gift made.
in rupees credited to NRO account of non-resident close relative(s), is within the limit of USD 200,000/- (US Dollar Two lakh.
only), which is the limit prescribed by the Reserve Bank for the purpose and certify that the source of funds for making the said.
remittance belongs to me and will not be used for prohibited purposes.
Signature of the applicant.
instructions issued by the Reserve Bank from time to time under the Scheme.
Name and designation of the authorised official:
Date: Stamp and Seal.
Q1. What will be the consequences in case we do not file the said FLA Return by 15th July, as our accounts are not.
audited as yet, and we do not wish to file it with unaudited figures. Will there be any imposition of penalty or.
prosecution initiated against the company by RBI or FEMA? Since nowhere it is mentioned either in the Circular.
No. 133 dated June 20, 2018 or in the Annex to AP (DIR Series) Circular No. 133 about the penalty or the.
prosecution, so, can we assume that we can file the same once our accounts are audited without any risk of penalty.
or other proceedings from the concerned authority in future?
Ans.: Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999 and it is required to be.
submitted by all the India resident companies which have received FDI and/ or made overseas investment in any of.
the previous year(s), including current year by July 15 every year. Non-filing of the return before due date will be.
treated as a violation of FEMA.
Q2. What information should be reported in FLA return, if balance sheet of the company is not audited before the.
due date of submission?
Ans.: If the company’s accounts are not audited before the due date of submission, i. e. July 15, then the FLA Return.
should be submitted based on unaudited (provisional) account. Once the accounts gets audited and there are.
revisions from the provisional information submitted by the company, they are supposed to submit the revised FLA.
return based on audited accounts by end - September.
Q3. In case where Account Closing Period of the company is different from reference period (end-March), can we.
report the information as per Account Closing Period?
Ans.: No. Information should be reported for all the reference period, i. e. Previous March and Latest March. إذا.
Account Closing Period of the company is different from the reference period, then information should be given for.
the reference period on internal assessment.
Eligible Companies to Submit the FLA Return.
Ans.: The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian.
companies which have received FDI (foreign direct investment) and/or made FDI abroad (i. e. overseas investment)
in the previous year(s) including the current year i. e. who holds foreign Assets or Liabilities in their Balance Sheets.
Q5. If a company did not receive FDI or made overseas investment in any of the previous year(s) including the.
current year, do we need to submit the FLA Return?
Ans.: If the Indian company does not have any outstanding investment in respect of inward and outward FDI as on.
end-March of reporting year, the company need not submit the FLA Return.
Q6. If a company has only share application money, then is that company supposed to submit the FLA Return?
Ans.: If a company has received only share application money and does not have any foreign direct investment or.
overseas direct investment outstanding as on end-March of the reporting year, then that company is not required to.
fill up FLA return.
Q7. If the company has not received any inward FDI / made overseas investment in the latest year, do they need to.
submit the FLA Return?
Ans.: If the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but.
the company has outstanding FDI and/or ODI, then that company is required to submit the FLA Return every year.
Q8. Whether FLA Return is required to be submitted by Registered Partnership Firms (Registered under Partnership.
Registration Act) or branches or trustees, who have made Overseas Direct Investment or it is mandatory only for.
Companies (Registered under Companies Act, 1956)?
Ans.: If the Partnership firms, Branches or Trustees have any outward FDI outstanding as on end-March of the.
reporting year, then they are required to send a request mail to get a dummy CIN number which will enable them to.
file the Excel based FLA Return. If any entity has already got the dummy CIN number from the previous survey,
they should use the same CIN number in the current survey also.
It is also informed that these dummy CIN numbers are provided by RBI for filling the excel based FLA return only.
and not for any other purpose.
Q9. Is it required to submit Annual Performance Report for ODI, if we have submitted FLA Return?
Ans.: Yes. FLA Return and Annual Performance Report (APR) for ODI are two different returns as per different.
FEMA Notifications. While APR is to be submitted separately for every JV / WOS of an Indian party, based on the.
audited (or un-audited, if permitted) accounts of the JV / WOS, by June 30th every year, FLA Return is to be.
submitted by the Indian company by July 15th every year based on their balance sheet.
Q10. If non-resident shareholders of a company has transferred their shares to the residents during the reporting.
Ans.: If all non-resident shareholders of a company has transferred their shares to the residents during the reporting.
period and the company does not have any outstanding investment in respect of inward and outward FDI as on endMarch of reporting year, then the company need not submit the FLA Return.
Q11. If company issued the shares to non-resident on Non-Repatriable basis, whether that company is required to.
submit the FLA Return?
Ans.: Shares issued by reporting company to non-resident on Non-Repatriable basis should not be considered as.
foreign investment; therefore, companies which have issued the shares to non-resident only on Non-Repatriable.
basis, is not required to submit the FLA Return.
Procedure for Submission of the FLA Return and Acknowledgement therefor.
Q12. Where can company get revised format of Annual Return on Foreign Liabilities and Assets (FLA Return)?
Ans.: The revised format of FLA is available on RBI’s web site,
(Home >> Forms >> Foreign Exchange Management Act Forms )
Annual return on Foreign Liabilities and Assets.
Company can download the updated FLA return every year by end of May. Company should use FLA return only.
Q13. What is the due date of submission of the FLA return?
Ans.: FLA return is mandatory under FEMA 1999 and companies are required to submit the same based on audited/
unaudited account by July 15 every year.
Q14. Where should we submit the FLA return?
Ans.: Filled-in the Excel based FLA return should be sent by email by 15 July. Any other attachment should not be.
forwarded along with the FLA return.
Q15. Where should we contact regarding any clarification for submission of FLA Return?
Ans.: Any query regarding filling of FLA return should be sent by email . You may also contact RBI person handling.
(022) 26578348/ 26578217/ 26578454/ 26578340/ 26578241.
Q16. From whose mail id the FLA Return should be e-mailed? Whether it is necessary to e-mail the FLA Return.
from the mail id of the person mentioned in Contact Details?
person like CFO, Director, Company Secretary etc. Acknowledgement will be forwarded to the both email ids.
(sender and mentioned in Contact Details).
Q17. Is it required to submit any financial statements like balance sheet or P&L accounts (audited/ unaudited) along.
with the FLA return?
Ans.: You are required to submit only the filled-in Excel based format of FLA by email before due date. Financial.
statements or any information in separate annex should not be forwarded along with the FLA return.
Q18. We have already submitted a hard copy of the FLA return with your office. Do we need to submit the FLA.
return in revised format once again?
Ans.: The Return has to be submitted in the Excel based format, which has inbuilt checks and validations. So if there.
are any discrepancies in the furnished information, you will be able to know and rectify them at your end before.
submitting the information to RBI. Further, by submission of the information in Excel based format by email will.
ensure that you will receive the confirmation email from RBI within a week for successful processing of data.
submitted by you. In view of this, you are advised to resubmit the information in prescribed format of FLA return.
Q19. As per the circular, excel file of return is required to be mailed . However, there is no column for the signature.
in the soft form. Should we, therefore, submit the signed hard copy or scanned copy of return to your office later or.
sending soft copy (validated) only would be sufficient compliance?
Ans.: It is sufficient to submit the validated excel based soft copy of filled-in FLA return through official email id of.
any authorized person of company like CFO, Director, Company Secretary etc. by email before due date for.
Q20: How would an acknowledgement is provided to us on submission of the form via e-mail?
Ans.: After sending the Excel based FLA return to email , you will receive an acknowledgement. Ensure that you.
have received a successful processing acknowledgement. If some error is mentioned in the acknowledgement rather.
than successful processing statement, then you have to resubmit the form by rectifying the mentioned error.
Q21. Can we send the PDF copy of the FLA return as we are facing some technical problem while furnishing the.
information in excel based format?
Ans.: You need to submit the information in the Excel based format only through email . In case of technical.
problem, you may forward the filled-in excel based form as it is as draft excel based FLA return to email in for.
rectifying the problem faced by you.
System Requirement for the FLA Return.
Q22. What is the system requirement at company’s side for filling the FLA Return and procedure for filling it.
Ans.: Company should have MS office Excel – 2003 onwards. Before filling the information in Excel based FLA.
Return, make sure that you have enabled the macro in Excel. In order to enable the macro, please do the following:
a) In Microsoft 2007.
Office Button >> Excel Options >> popular Select ‘Show developer tab in the Ribbon’, then.
Go to Developer tab >> Macro Security >> select ‘Enable all macros’
b) In Microsoft 2018.
Go to File >> option >> trust centre >> trust centre setting >> macro setting Select ‘Enable all macros’
Q23. How should we save the return?
Ans.: It is required to save the FLA return in Excel 97-2003 Workbook (.xls format).
In order to save the return as follows:
Go to Office Button >> Save As >> Save as type Select ‘Excel 97-2003 Workbook’
FAQs Related to Section I.
Q24. Where can we find the detailed description of NIC-2008 code (item-6)?
الجواب. In the FLA Return, industry codes are given as per the National Industrial Classification (NIC) -2008 codes.
The details on NIC-2008 codes can be accessed through the following link,
Q25. If a company has more than one activity during the year then which NIC code should be reported by company.
Ans.: Company will select that activity, from which, they have earned major revenue.
Q26. If Company has only Outward Investment and no inward FDI, then what should we select in Identification of.
the reporting company (in terms of inward investment) under Section I (Item 9)?
Ans.: Option ‘Others’ can be selected in respect of Identification of the reporting company under Section I.
Q27. What is the meaning of Technical Foreign Collaboration (item-11)?
Ans.: Indian company which has entered into an agreement with a foreign entity in terms of technology transfer,
know-how transfer, use of patent, brand name etc, then such type of agreements are treated as Foreign Technical.
should select ‘Yes’ against the item 11 under Section I of the FLA return.
FAQs Related to Section II.
Q28. The section II Password is asked while entering data. Is the Return password protected?
Ans.: Don’t try to fill purple cells in the Return, as those are locked/ password protected. Fill-in the yellow cells.
فقط. Purple cells denote calculated fields, which are computed automatically.
Q29. What are participating and non-participating preference shares?
Ans.: Participating preference shares are those shares which have one or more of the following rights:
(a) To receive dividend, out of surplus profit after paying the dividend to equity shareholders.
(b) To have share in surplus assets remaining after the entire capital is paid in case of winding up of the company.
On the other hand Non-participating Preference Shares are those shares which do not have one or more of the above.
Q30. Whether equity participation includes equity shares as well as compulsorily convertible debentures (CCD)?
Ans.: Compulsorily convertible debentures (CCD) issued by the company should not be included in the paid up.
capital while furnishing the information in Block 1A (in Section II) of the FLA Return. However, if the CCDs /
Debentures are held by the non-resident direct investor who is holding the equity shares of Indian reporting.
company, then CCD / Debentures holding should be reported in ‘other capital’ component of either Block 2A or 2B.
(in Section III), depending upon the per cent equity held by the non-resident direct investor.
However if the investor holds only CCD as on end March, then it should be reported in item 2.2 of Block 2C.
Similar treatment should be considered while reporting the compulsory convertible preference shares also.
Q31. Whether, in Section II - Block 1A - Item 3.0, the Non-Resident Equity and participating Preference Shares.
Capital holding (%) is being calculated with respect to Item 1.0 (Total Paid-up capital) or Item 1.1 (Total Equity and.
participating Preference Shares Capital)?
Ans.: Since Non-Participating share capital is a type of debt investment and is part of Item 1.0, Non-Resident Equity.
and participating Preference Shares Capital holding (%) is calculated with respect to item 1.1 of Block 1A (in Scion.
Ans.: Premium on issue of Equity Share Capital is a part of Reserve, which should be reported under the item 4.1 of.
Block 1C - Reserves and Surplus, (in Section II).
Q33: We are not able to insert negative figures at item 4.1 of Block 1C. What should we do?
Ans.: At item 4.1 of Block 1C, you are supposed to mention the information on Reserves excluding Profit & خسارة.
account balance, which is always be positive and Profit & loss account balances (carried forward to the balance.
sheet) should be reported separately at item 4.2 of Block 1C, which can be negative. Ensure that the item 4.3 of.
Block 1C (i. e. Item 4.1 + Item 4.2), which is auto calculated figure, must be equal to the Reserve and Surplus.
mention in Balance sheet of the company.
Q34. What should we include in Block 1D?
Ans.: In Block 1D, you are required to provide the information relating to all purchases (including capital and.
revenue of goods and services)/ sales made domestically as well as foreign during the reference period (April March).
FAQs Related to Section III.
Q35. How will we do the valuation of the equity capital for unlisted companies?
Ans.: To calculate the market value of equity capital for unlisted companies use the OFBV method as follows:
Market value of equity capital held by Non - resident at OFBV.
= (Net worth of the company) * (% non-resident equity holding)
Where, Net worth of the company.
= (Paid up Equity & Participating Preference share capital of company + Reserves & Surplus - Accumulated losses)
However, in excel based format of FLA Return, Net worth of company will be automatically calculated at item 4.4.
of Block 1C under Section II, which may be used for valuation of non-resident equity investment under Section III.
Q36. What valuation guidelines should be used while reporting foreign equity investment under Section III for listed.
Ans.: If the Indian reporting company is listed then closing share price as on reference period, i. e. end-March of.
previous and latest year should be used for valuation of non-resident equity investment.
Ans.: Other capital is a debt which is to be reported as follows:
(a) Other capital, item 2.1 & 2.2 of Block-2A includes all other liabilities and claims at Nominal value, except equity.
and participating preference shares, (i. e. trade credit, loan, debentures, Non-participating share capital, other.
accounts receivable and payables etc.) of Indian reporting company with its direct investors holding more than 10.
per cent equity.
(b) Other capital, item 2.1 & 2.2 of Block-2B includes all other liabilities and claims at Nominal value, except.
equity and participating preference shares, (i. e. trade credit, loan, debentures, Non-participating share capital, other.
accounts receivable and payables etc.) of Indian reporting company with non-resident investors holding less than 10.
per cent equity and indirect related parties (fellow enterprise or ultimate parent company or group company etc.).
Q38. What is the definition of related party?
Ans.: A related party is a person or entity that is related to the entity that is preparing its financial statements.
(referred to as the ‘reporting entity’).
A person or a close member of that person’s family is related to a reporting entity if that person:
has control or joint control over the reporting entity;
has significant influence over the reporting entity; أو.
is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
In the definition of a related party, an associate includes subsidiaries of the associate and a joint venture includes.
subsidiaries of the joint venture. Therefore, for example, an associate’s subsidiary and the investor that has.
significant influence over the associate are related to each other.
Q39. Where should we report the non-participating preference share issued to non-resident?
Ans.: Non-participating preference share are treated as debt securities. (a) If the Non-participating preference shares.
are held by foreign investor who is also holding equity shares of Indian reporting company, then Non-participating.
preference share should be reported at item 2.1 of Block 2A or 2B (depending upon the % equity & participating.
preference share held by foreign investor) at nominal value.
Q40. Where should we report Fully/Partially/Non-convertible debentures issued to the non-residents in FLA Return?
Ans.: Fully/Partially/Non-convertible debentures are treated as debt securities. (a) If the debentures (of any type) are.
held by foreign investor, the amount should be reported at item 2.1 of Block 2A or 2B (depending upon the % equity.
plus participating preference share held by foreign investor) at nominal value.
Ans.: If the share application money is received from the existing non-resident shareholder, then the outstanding.
share application money should be reported at item 2.1 of Block 2A or 2B, depending upon per cent of equity plus.
participating preference share holding by non-resident investor.
Q42. On validating section III of the FLA Return we are getting the error message regarding mismatch of nonresident equity and participating preference share holding (%) between Section III and Section II. How should we.
resolve the error?
Ans.: Non-resident equity holding per cent (%) is calculated for current year at item 3.0 of Block 1A under Section.
II. Ensure that the sum of Non-resident equity holding per cent (%) reported under Block 2A, 2B & 2C of Section.
III must be equal to value given at item 3.0 of Block 1A of Section II.
Q43. In the FLA Return, whether FDI should be reported based on the country of immediate investor or country of.
ultimate holding company? Where should we report the receivable/ payables with non-resident ultimate holding.
Example: A company incorporated in Mauritius has invested into Indian company. The parent company of Mauritian.
company is incorporated in USA. So whether claims and liabilities of Indian company with parent company.
incorporated in USA also needs to be disclosed in the FLA Return and if yes, where?
Ans.: While filling the FLA return, FDI reporting should be based on the country of immediate investor. However, if.
there are any receivables/payables with the non-resident ultimate holding company, then same should also be.
reported at ‘Other capital’ component of Block 2B under Section III.
In respect of the above example, claims and liabilities of Indian company with the parent USA Company will be.
reported at ‘Other capital’ component of Block 2B under Section III.
Q44. What constitute in the Equity Securities under portfolio Investment?
Ans.: Please furnish here the outstanding equity investments (secondary / stock market investment) by non-resident.
investors, other than those made under Foreign Direct Investment Scheme in India (i. e. other than those reported in.
Q45. What constitute in the Debt Securities under portfolio Investment?
Ans.: Following items are included in Debt Securities:
(a) Money Market Instruments and Bonds & Other instruments are invested by non-resident investors, (other than.
those are reported in Block-2A & Block-2B)
(b) Non-participating preference shares and debentures are held by foreign investor who is not holding equity share,
FAQs Related to Section IV.
Q46. Can you explain, what exactly is the meaning of Block 3A of Section IV under Foreign assets?
Ans.: Block 3A of Section IV on foreign assets captures the information on financial details of Overseas Company.
in which your company’s equity holding is 10 per cent or more.
Q47. If the overseas subsidiaries/ joint venture company’s accounting period is different from the.
reference/reporting period (i. e. April-March) in the Return, then what information should we furnish in Section IV?
Ans.: Companies are required to furnish the information on outstanding external liabilities and assets as on endMarch of previous and latest year. In case if the accounting period of overseas subsidiaries/ joint venture of Indian.
reporting company is different from the reference period, then the information for end-March should be given on.
internal assessment basis.
Q48. In case where overseas company (DIE) is unlisted, how can we calculate the market value of overseas equity.
investment using OFBV method under Block 4A of Section IV?
Ans.: For valuation of overseas equity investment OFBV Method should be used, as explained below:
Market value of equity capital held by you at OFBV.
= (Net worth of the DIE) * (% of equity held by you) Where,
Net worth of the DIE = (Paid up Equity & Participating Preference share capital of company.
+Reserves & Surplus - Accumulated losses)
As per Block 3A of section IV the formula is given below:
Item 1.1 of Block 4A = (Item 3.2/ Item 3.1)* (Item 3.6* Item 3.7)/100000 for reference period Where, Item 3.1,
Item 3.2, Item 3.6 and Item 3.7 are extracted from block 3A.
Q49. How will we do the valuation of the equity capital for listed DIE?
Ans.: If the overseas company is listed then closing share price as on reference period, i. e. end-March of previous.
and latest year should be used for valuation of equity investment.
Ans.: Other capital is a debt which to be reported as follows:
(a) Other capital, item 2.1 & 2.2 of Block-4A includes all other claims and liabilities at Nominal value, except equity.
shares, (i. e. trade credit, loan, debentures, Non-participating share capital, other accounts receivable and payables.
etc.) of Indian reporting company with its DIE reported in Block-4A.
(b) Other capital, item 2.1 & 2.2 of Block-4B includes all other liabilities and claims at Nominal value, except.
equity, (i. e. trade credit, loan, debentures, Non-participating share capital, other accounts receivable and payables.
etc.) of Indian reporting company with non-resident companies where Indian company holds less than 10 per cent.
equity and also with indirect related parties (fellow enterprise or ultimate parent company or group company etc.).
Q51. What constitute in the Equity Securities under Portfolio Investment Abroad?
Ans.: Please furnish here the outstanding equity investments (foreign stock market investment) by reporting.
company, other than those made under Foreign Direct Investment Abroad (i. e. other than those reported in Block-4A.
Q52. What constitute in the Debt Securities under Portfolio Investment Abroad?
Ans.: Money Market Instruments and Bonds & Other instruments are invested by reporting company (other than.
those are reported in Block-4A & Block-4B) are included in the Debt Securities under Portfolio Investment Abroad.
FAQs Related to Section V.
Q53. In case of section-V of the form, it is written that position with foreign unrelated parties to be given. رجاء.
clarify what transactions are to be reported under the same?
Ans.: All financial outstanding liabilities and claims (Trade Credit, Loans, Currency & Deposits, and other.
receivable & payable accounts) with foreign unrelated Parties should be reported in Block 6. Any domestic.
liabilities or assets (even if it is in foreign currency) should not be reported in the FLA return.
Further, if the share application money is received from foreign investor who does not hold equity shares of Indian.
reporting company as on reference date, then outstanding share application money should be disclosed under.
Section V, at point 6.4: Other receivable and payable accounts.
Q54: Will EEFC account with Bank come under Section V (Currency and Deposit of Outstanding Claims)?
Ans.: EEFC account with Bank is not creating any external Assets and Liabilities. Therefore it will not come under.
Q55. Whether, any assets or liabilities for Indian party (i. e. domestic assets and liabilities) are to be included in the.
Ans.: Any domestic liabilities or assets (even if it is in foreign currency) should not be reported in the FLA return.
Compounding of Contraventions under FEMA, 1999.
(As on July 2, 2018)
Q.1. What is meant by contravention and compounding of contravention?
الجواب. Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and.
rules/ regulations/ notification/ orders/ directions/ circulars issued there under. Compounding refers to the process of.
voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to.
compound any contraventions as defined under section 131 of FEMA, 1999 except the contravention under section.
ibid, for a specified sum after offering an opportunity of personal hearing to the contravener. It is a voluntary.
process in which an individual or a corporate seeks compounding of an admitted contravention. It provides comfort.
to any person who contravenes any provisions of FEMA, 1999 [except section 3(a) of the Act] by minimizing.
transaction costs. Willful, malafide and fraudulent transactions are, however, viewed seriously, which will not be.
compounded by the Reserve Bank.
Q.2. Who can apply for compounding?
الجواب. Any person who contravenes any provision of the FEMA, 1999 [except section 3(a)] or contravenes any rule,
regulation, notification, direction or order issued in exercise of the powers under this Act or contravenes any.
condition subject to which an authorization is issued by the Reserve Bank, can apply for compounding to the.
Reserve Bank. Applications seeking compounding of contraventions under section 3(a) of FEMA, 1999 may be.
submitted to the Directorate of Enforcement.
Q.3 When should one apply for compounding?
الجواب. When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or.
the Foreign Investment Promotion Board (FIPB) or any other statutory authority or the auditors or by any other.
means, she/he may apply for compounding. One can also make an application for compounding, suo moto, on.
becoming aware of the contravention.
Q.4. What is the procedure for applying for compounding?
الجواب. The form given as Annex – I to the A. P.(DIR Series) Circular No. 56 dated June 28, 2018 issued by the.
Reserve Bank of India, can be used for applying for compounding. The same can also be downloaded from the.
Reserve Bank’s website by clicking on the link i. e.rbi. in/Scripts/BS_ApCircularsDisplay. aspx.
الجواب. نعم فعلا. The application in the prescribed format along with necessary documents and a demand draft for Rs.
5000/- (Rupees five thousand only) drawn in favour of the “Reserve Bank of India” should be sent to the Reserve.
Bank of India while sending the request for compounding.
Q.6. What are the details required to be filled in the application form?
الجواب. Along with the application in the prescribed format, the applicant may also furnish the details as per the.
Annexes - relating to Foreign Direct Investment, External Commercial Borrowings, Overseas Direct Investment.
Branch Office / Liaison Office, as applicable, (attached to the A. P. (DIR Series) Circular No. 57 dated December 13,
2018) along with an undertaking that they are not under investigation of any agency such as DOE, CBI, etc., a copy.
of the Memorandum of Association and latest audited balance sheet while applying for compounding of.
contraventions under FEMA, 1999.
Q.7. Where should one apply for compounding?
الجواب. Regional Offices of the Reserve Bank of India mentioned below are authorised to compound the.
contraventions of FEMA involving (i) delay in reporting of inward remittance, (ii) delay in filing of form FC-GPR.
after allotment of shares and (iii) delay in issue of shares beyond 180 days (viz. paragraphs 9(1)(A), 9(1)(B) and 8,
respectively, of the Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by a Person.
Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA 20/2000-RB dated 3rd May 2000.
and as amended from time to time:
a) Paragraphs 9 (1) (A) and 9 (1) (B) of Schedule I to FEMA 20/2000-RB dated May 3, 2000 Bhopal, Bhubaneshwar, Chandigarh, Guwahati, Jaipur, Jammu, Kanpur, Kochi, Patna and Panaji for amount of.
contravention below Rupees One hundred lakh only (Rs.1,00,00,000 /-).
b) Paragraphs 9 (1) (A), 9 (1) (B) and 8 of Schedule I to FEMA 20/2000-RB dated May 3, 2000 Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi for amount of contravention.
without any limit.
Accordingly, all applications for compounding whether received on the advice of the Regional Office concerned or.
suo-moto, relating to the contraventions mentioned at (a) and (b) above may be submitted by the companies falling.
under the jurisdiction of the aforesaid Regional Offices directly to the Regional Office concerned, together with the.
prescribed fee and other relevant documents. All other applications may be submitted to the Compounding.
Authority, Cell for Effective implementation of FEMA (CEFA), Foreign Exchange Department, 5th floor, Amar.
Building, Sir P. M.Road, Fort, Mumbai-400001. The prescribed fee of Rs. 5000/- may be paid by way of a demand.
draft drawn in favour of "Reserve Bank of India" and payable at the Regional Office where the application is being.
submitted and at Mumbai if the application is submitted at CEFA, Mumbai.
Q.8. Can an application for compounding be sent to the Reserve Bank pending fulfillment of certain obligations?
compounding of contravention. Compounding can be done only after rectifying the records by way of obtaining.
post-facto approvals or unwinding the transactions in cases where such transactions are not permissible under.
FEMA, 1999. Copies of approvals and other compliances should be enclosed along with the application.
Q.9. What action is taken by the Reserve Bank on receipt of the application?
الجواب. The Reserve Bank makes a scrutiny of the application to verify whether the required details and documents.
furnished by the applicant are prima-facie in order. Applications with incomplete details or where the contravention.
is not admitted will be returned to the applicant. On the admission of applications, the Reserve Bank will examine.
and decide if the contravention is technical, material or sensitive in nature. If technical, the applicant will be issued a.
cautionary advice. If the contravention is material, it will be compounded by imposing a penalty after giving an.
opportunity to the contravener to appear before the compounding authority for a personal hearing. إذا كان.
contravention is sensitive in nature requiring further investigations, the same would be referred to the Directorate of.
Enforcement (DoE) for further investigation/ action.
Q.10. What are sensitive contraventions?
الجواب. The contraventions, prima facie, involving money laundering, national and security concerns involving serious.
infringement of the regulatory framework, etc., are sensitive contraventions.
Q.11. Who should classify the contravention as technical, material or sensitive?
الجواب. Whether contravention under the Foreign Exchange Management Act (FEMA) is to be treated as technical and/
or minor or serious would be decided by the Reserve Bank on the merits of the case. The application will be.
disposed of keeping in view the procedure notified in this regard. Persons who have contravened the provisions of.
FEMA should not take upon themselves suo moto, or on the basis of external advice to decide whether a particular.
contravention is technical or minor in nature and, hence, no compounding application need be submitted to the.
Reserve Bank. If such applications for compounding are not made, the person concerned shall expose.
himself/herself to such action under the provisions of FEMA as the authorities may deem appropriate. The persons.
concerned should, therefore, in their own interest submit their applications for compounding of contravention under.
FEMA to the Reserve Bank at the earliest opportunity.
Q. 12. Is it mandatory to appear for the personal hearing?
الجواب. It is not mandatory to attend the personal hearingIn case a person opts not to attend the personal hearing he.
may indicate his preference in writing. The application would be disposed of on the basis of documents submitted to.
the Compounding Authority.
Q.13. Can the applicant authorise another person to attend the personal hearing?
الجواب. Yes, another person may be authorised by the applicant to attend the personal hearing on his behalf but only.
with proper written authority. It has to be ensured that the person appearing on behalf of the applicant is conversant.
with the nature of contravention and the related matters.
الجواب. The Compounding Authority passes an order indicating details of the contravention and the provisions of.
FEMA, 1999 that have been contravened. The sum payable for compounding the contravention is indicated in the.
compounding order. The contravention is compounded by payment of the penalty imposed.
Q.15. When should the amount indicated in the order be paid?
الجواب. The amount should be paid within 15 days from the date of the order by way of a demand draft drawn on.
"Reserve Bank of India" and payable at the Regional office which has issued the compounding order and at Mumbai.
if the order is issued by CEFA, Mumbai.
Q. 16. How does the application for compounding finally get disposed of?
الجواب. On realization of the sum for which contravention is compounded, a certificate shall be issued by the Reserve.
Bank indicating that the applicant has complied with the order passed by the Compounding Authority.
There cannot be a second adjudication by any authority on the contravention compounded. In terms of FEMA, 1999,
where a contravention has been compounded, no proceeding or further proceeding, as the case may be, can be.
initiated or continued, as the case may be, against the person committing such contravention under that section, in.
respect of the contravention compounded.
Q.17. What happens if the amount is not paid within 15 days of the order?
الجواب. In case of non-payment of the amount indicated in the compounding order within 15 days of the order, it will.
be treated as if the applicant has not made any compounding application to the Reserve Bank and the other.
provisions of FEMA, 1999 regarding contraventions will apply. Such cases will be referred to the Directorate of.
Enforcement for necessary action.
Q.18. Can there be an appeal against the order of the Compounding Authority?
الجواب. As compounding is based on voluntary admissions and disclosures, there cannot be an appeal against the order.
of the Compounding Authority.
Q.19. What is the timeframe for completing the compounding process?
الجواب. The compounding process is normally completed within 180 days from the date of receipt of the application.
complete in all aspects, by the Reserve Bank.
Q.20. Where can one get more details about compounding?
Ans.. One can visit to Master circular on compounding available on Reserve Bank’s website at following link.
notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject.
to which an authorization s issued by the Reserve Bank, he shall, upon adjudication, be liable to a penalty up to.
thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where the.
amount is not quantifiable, and where such contrav ntion is a continying one, further penalty which may extend to.
five thousand rupees for every day after the first day during which the contravention continues.
(2) Any Adjudicating Authority adjudging any contravention under sub-section (1), may, if he thinks fit in addition.
to any penalty which he may impose for such contravention direct that any currency, security or any other money or.
property in respect of which the contravention has taken place shall be confiscated to the Central Government and.
further direct that the foreign exchange holdings, if any, of the persons committing the contraventions or any part.
thereof, shall be brought back into India or shall be retained outside India in accordance with the directions made in.
Explanation.- For the purposes of this sub-section, "property" in respect of which contravention has taken place,
shall include(a) deposits in a bank, where the said property is converted into such deposits;
(b) Indian currency, where the said property is converted into that currency; و.
(c) any other property which has resulted out of the conversion of that property.
Section 3 - Dealing in foreign exchange, etc.- Save as otherwise provided in this Act, rules or regulations made.
thereunder, or with the general or special permission of the Reserve Bank, no person shall - (a) deal in or transfer any.
foreign exchange or foreign security to any person not being an authorized person;
Compounding of Contraventions under FEMA, 1999.
(As on July 2, 2018)
Q.1. What is meant by contravention and compounding of contravention?
الجواب. Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and.
rules/ regulations/ notification/ orders/ directions/ circulars issued there under. Compounding refers to the process of.
voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to.
compound any contraventions as defined under section 131 of FEMA, 1999 except the contravention under section.
ibid, for a specified sum after offering an opportunity of personal hearing to the contravener. It is a voluntary.
process in which an individual or a corporate seeks compounding of an admitted contravention. It provides comfort.
to any person who contravenes any provisions of FEMA, 1999 [except section 3(a) of the Act] by minimizing.
transaction costs. Willful, malafide and fraudulent transactions are, however, viewed seriously, which will not be.
compounded by the Reserve Bank.
Q.2. Who can apply for compounding?
الجواب. Any person who contravenes any provision of the FEMA, 1999 [except section 3(a)] or contravenes any rule,
regulation, notification, direction or order issued in exercise of the powers under this Act or contravenes any.
Reserve Bank. Applications seeking compounding of contraventions under section 3(a) of FEMA, 1999 may be.
submitted to the Directorate of Enforcement.
Q.3 When should one apply for compounding?
الجواب. When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or.
the Foreign Investment Promotion Board (FIPB) or any other statutory authority or the auditors or by any other.
means, she/he may apply for compounding. One can also make an application for compounding, suo moto, on.
becoming aware of the contravention.
Q.4. What is the procedure for applying for compounding?
الجواب. The form given as Annex – I to the A. P.(DIR Series) Circular No. 56 dated June 28, 2018 issued by the.
Reserve Bank of India, can be used for applying for compounding. The same can also be downloaded from the.
Reserve Bank’s website by clicking on the link i. e.rbi. in/Scripts/BS_ApCircularsDisplay. aspx.
Q.5. Are any fees required to be paid for seeking compounding?
الجواب. نعم فعلا. The application in the prescribed format along with necessary documents and a demand draft for Rs.
5000/- (Rupees five thousand only) drawn in favour of the “Reserve Bank of India” should be sent to the Reserve.
Bank of India while sending the request for compounding.
Q.6. What are the details required to be filled in the application form?
الجواب. Along with the application in the prescribed format, the applicant may also furnish the details as per the.
Annexes - relating to Foreign Direct Investment, External Commercial Borrowings, Overseas Direct Investment.
Branch Office / Liaison Office, as applicable, (attached to the A. P. (DIR Series) Circular No. 57 dated December 13,
2018) along with an undertaking that they are not under investigation of any agency such as DOE, CBI, etc., a copy.
of the Memorandum of Association and latest audited balance sheet while applying for compounding of.
contraventions under FEMA, 1999.
Q.7. Where should one apply for compounding?
الجواب. Regional Offices of the Reserve Bank of India mentioned below are authorised to compound the.
contraventions of FEMA involving (i) delay in reporting of inward remittance, (ii) delay in filing of form FC-GPR.
after allotment of shares and (iii) delay in issue of shares beyond 180 days (viz. paragraphs 9(1)(A), 9(1)(B) and 8,
respectively, of the Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by a Person.
Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA 20/2000-RB dated 3rd May 2000.
and as amended from time to time:
a) Paragraphs 9 (1) (A) and 9 (1) (B) of Schedule I to FEMA 20/2000-RB dated May 3, 2000 Bhopal, Bhubaneshwar, Chandigarh, Guwahati, Jaipur, Jammu, Kanpur, Kochi, Patna and Panaji for amount of.
b) Paragraphs 9 (1) (A), 9 (1) (B) and 8 of Schedule I to FEMA 20/2000-RB dated May 3, 2000 Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi for amount of contravention.
without any limit.
Accordingly, all applications for compounding whether received on the advice of the Regional Office concerned or.
suo-moto, relating to the contraventions mentioned at (a) and (b) above may be submitted by the companies falling.
under the jurisdiction of the aforesaid Regional Offices directly to the Regional Office concerned, together with the.
prescribed fee and other relevant documents. All other applications may be submitted to the Compounding.
Authority, Cell for Effective implementation of FEMA (CEFA), Foreign Exchange Department, 5th floor, Amar.
Building, Sir P. M.Road, Fort, Mumbai-400001. The prescribed fee of Rs. 5000/- may be paid by way of a demand.
draft drawn in favour of "Reserve Bank of India" and payable at the Regional Office where the application is being.
submitted and at Mumbai if the application is submitted at CEFA, Mumbai.
Q.8. Can an application for compounding be sent to the Reserve Bank pending fulfillment of certain obligations?
الجواب. No. All requisite approvals should be obtained and compliances should be completed before seeking.
compounding of contravention. Compounding can be done only after rectifying the records by way of obtaining.
post-facto approvals or unwinding the transactions in cases where such transactions are not permissible under.
FEMA, 1999. Copies of approvals and other compliances should be enclosed along with the application.
Q.9. What action is taken by the Reserve Bank on receipt of the application?
الجواب. The Reserve Bank makes a scrutiny of the application to verify whether the required details and documents.
furnished by the applicant are prima-facie in order. Applications with incomplete details or where the contravention.
is not admitted will be returned to the applicant. On the admission of applications, the Reserve Bank will examine.
and decide if the contravention is technical, material or sensitive in nature. If technical, the applicant will be issued a.
cautionary advice. If the contravention is material, it will be compounded by imposing a penalty after giving an.
opportunity to the contravener to appear before the compounding authority for a personal hearing. إذا كان.
contravention is sensitive in nature requiring further investigations, the same would be referred to the Directorate of.
Enforcement (DoE) for further investigation/ action.
Q.10. What are sensitive contraventions?
الجواب. The contraventions, prima facie, involving money laundering, national and security concerns involving serious.
infringement of the regulatory framework, etc., are sensitive contraventions.
Q.11. Who should classify the contravention as technical, material or sensitive?
الجواب. Whether contravention under the Foreign Exchange Management Act (FEMA) is to be treated as technical and/
or minor or serious would be decided by the Reserve Bank on the merits of the case. The application will be.
disposed of keeping in view the procedure notified in this regard. Persons who have contravened the provisions of.
FEMA should not take upon themselves suo moto, or on the basis of external advice to decide whether a particular.
Reserve Bank. If such applications for compounding are not made, the person concerned shall expose.
himself/herself to such action under the provisions of FEMA as the authorities may deem appropriate. The persons.
concerned should, therefore, in their own interest submit their applications for compounding of contravention under.
FEMA to the Reserve Bank at the earliest opportunity.
Q. 12. Is it mandatory to appear for the personal hearing?
الجواب. It is not mandatory to attend the personal hearingIn case a person opts not to attend the personal hearing he.
may indicate his preference in writing. The application would be disposed of on the basis of documents submitted to.
the Compounding Authority.
Q.13. Can the applicant authorise another person to attend the personal hearing?
الجواب. Yes, another person may be authorised by the applicant to attend the personal hearing on his behalf but only.
with proper written authority. It has to be ensured that the person appearing on behalf of the applicant is conversant.
with the nature of contravention and the related matters.
Q.14. How is the compounding process brought to the conclusion?
الجواب. The Compounding Authority passes an order indicating details of the contravention and the provisions of.
FEMA, 1999 that have been contravened. The sum payable for compounding the contravention is indicated in the.
compounding order. The contravention is compounded by payment of the penalty imposed.
Q.15. When should the amount indicated in the order be paid?
الجواب. The amount should be paid within 15 days from the date of the order by way of a demand draft drawn on.
"Reserve Bank of India" and payable at the Regional office which has issued the compounding order and at Mumbai.
if the order is issued by CEFA, Mumbai.
Q. 16. How does the application for compounding finally get disposed of?
الجواب. On realization of the sum for which contravention is compounded, a certificate shall be issued by the Reserve.
Bank indicating that the applicant has complied with the order passed by the Compounding Authority.
There cannot be a second adjudication by any authority on the contravention compounded. In terms of FEMA, 1999,
where a contravention has been compounded, no proceeding or further proceeding, as the case may be, can be.
initiated or continued, as the case may be, against the person committing such contravention under that section, in.
respect of the contravention compounded.
Q.17. What happens if the amount is not paid within 15 days of the order?
الجواب. In case of non-payment of the amount indicated in the compounding order within 15 days of the order, it will.
be treated as if the applicant has not made any compounding application to the Reserve Bank and the other.
provisions of FEMA, 1999 regarding contraventions will apply. Such cases will be referred to the Directorate of.
Q.18. Can there be an appeal against the order of the Compounding Authority?
الجواب. As compounding is based on voluntary admissions and disclosures, there cannot be an appeal against the order.
of the Compounding Authority.
Q.19. What is the timeframe for completing the compounding process?
الجواب. The compounding process is normally completed within 180 days from the date of receipt of the application.
complete in all aspects, by the Reserve Bank.
Q.20. Where can one get more details about compounding?
Ans.. One can visit to Master circular on compounding available on Reserve Bank’s website at following link.
notification, direction or order issued in exercise of the powers under this Act, or contravenes any condition subject.
to which an authorization s issued by the Reserve Bank, he shall, upon adjudication, be liable to a penalty up to.
thrice the sum involved in such contravention where such amount is quantifiable, or up to two lakh rupees where the.
amount is not quantifiable, and where such contrav ntion is a continying one, further penalty which may extend to.
five thousand rupees for every day after the first day during which the contravention continues.
(2) Any Adjudicating Authority adjudging any contravention under sub-section (1), may, if he thinks fit in addition.
to any penalty which he may impose for such contravention direct that any currency, security or any other money or.
property in respect of which the contravention has taken place shall be confiscated to the Central Government and.
further direct that the foreign exchange holdings, if any, of the persons committing the contraventions or any part.
thereof, shall be brought back into India or shall be retained outside India in accordance with the directions made in.
Explanation.- For the purposes of this sub-section, "property" in respect of which contravention has taken place,
shall include(a) deposits in a bank, where the said property is converted into such deposits;
(b) Indian currency, where the said property is converted into that currency; و.
(c) any other property which has resulted out of the conversion of that property.
Section 3 - Dealing in foreign exchange, etc.- Save as otherwise provided in this Act, rules or regulations made.
thereunder, or with the general or special permission of the Reserve Bank, no person shall - (a) deal in or transfer any.
foreign exchange or foreign security to any person not being an authorized person;
Account Opened by Foreign Nationals and Foreign Tourists.
(Updated up to June 22, 2018)
(updated as on July 2, 2018)
Acquisition of immovable property in India by persons resident outside India (foreign national) is regulated in terms of section 6.
(3) (i) of the Foreign Exchange Management Act (FEMA), 1999 as well as by the regulations contained in the Notification No.
FEMA 21/2000-RB dated May 3, 2000, as amended from time to time. Section 2 (v) and Section 2 (w) of FEMA, 1999 defines.
`person resident in India' and a `person resident outside India', respectively. Person resident outside India is categorized as.
Non - Resident Indian (NRI) or a foreign national of Indian Origin (PIO) or a foreign national of non-Indian origin. The Reserve.
Bank does not determine the residential status. Under FEMA, residential status is determined by operation of law. The onus is.
on an individual to prove his / her residential status, if questioned by any authority.
A person resident in India who is not a citizen of India is also covered by the relevant Notifications.
2. In terms of the provisions of Section 6(5) of FEMA 1999, a person resident outside India can hold, own, transfer or invest in.
Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held.
or owned by such person when he was a resident in India or inherited from a person who was a resident in India.
3. The regulations under Notification No. FEMA 21/2000-RB dated May 3, 2000, as amended from time to time, permit a NRI.
or a PIO to acquire immovable property in India, other than agricultural land or, plantation property or farm house. Further,
foreign companies who have been permitted to open a Branch or Project Office in India are also allowed to acquire any.
immovable property in India, which is necessary for or incidental to carrying on such activity. Such dispensation is however not.
available to entities which are permitted to open liaison offices in India.
4. The restrictions on acquiring immovable property in India by a person resident outside India would not apply where the.
immovable property is proposed to be acquired by way of a lease for a period not exceeding 5 years or where a person is.
deemed to be resident in India.
In order to be deemed to be a person resident in India, from FEMA angle, the person would need to comply with the provisions.
of Section 2(v) of FEMA 1999. The Press Release dated February 1, 2009 issued by Government of India in this regard is.
enclosed as Annex.
Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire or transfer.
immovable property in India, (other than on lease not exceeding five years) without the prior permission of the Reserve Bank.
5. NRIs/ PIOs are allowed to repatriate an amount up to USD one million, per financial year (April-March), out of the balances.
held in the Non-Resident (Ordinary) Rupee (NRO) account, subject to compliance with applicable tax requirements. هذه.
amount includes sale proceeds of assets acquired by way of inheritance or settlement.
The FAQs cover the following topics :
A. Acquisition of Immovable Property in India by a person resident outside India, i. e., by a NRI / PIO / foreign national of nonIndian origin by way of purchase / gift / inheritance.
B. Transfer of immovable property in India by a person resident outside India by way of.
C. Mode of payment for purchase of immovable property in India.
D. Repatriation of sale proceeds of residential / commercial property, in India, outside India acquired by NRI / PIO by way of.
F. Other Aspects.
purchase / gift/ inheritance.
Q.1. Who can purchase immovable property in India ?
Under the general permission available, the following categories can purchase immovable property in India:
i) Non-Resident Indian (NRI)1[1][1][1]
ii) Person of Indian Origin (PIO)2[2][2]
The general permission, however, covers only purchase of residential and commercial property and is not available for.
purchase of agricultural land / plantation property / farm house in India.
Q.2. Can NRI/PIO acquire agricultural land/ plantation property / farm house in India?
Q.3. Are any documents required to be filed with the Reserve Bank after the purchase?
No. An NRI / PIO who has purchased residential / commercial property under general permission, is not required to file.
any documents/reports with the Reserve Bank.
Q.4. How many residential / commercial properties can NRI / PIO purchase under the general permission?
There are no restrictions on the number of residential / commercial properties that can be purchased.
Q.5. Can a foreign national of non-Indian origin be a second holder to immovable property purchased by NRI / PIO?
unless such property is acquired by way of inheritance from a person who was resident in India. However, he / she can acquire.
or transfer immovable property in India, on lease, not exceeding five years. In such cases, there is no requirement of taking.
any permission of /or reporting to the Reserve Bank.
Q.7. Can a foreign national who is a person resident in India purchase immovable property in India?
Yes, a foreign national who is a ‘person resident in India’ within the meaning of Section 2(v) of FEMA, 1999 can purchase.
immovable property in India, but the person concerned would have to obtain the approvals and fulfil the requirements, if any,
prescribed by other authorities, such as, the State Government concerned, etc. The onus to prove his/her residential status is.
on the individual as per the extant FEMA provisions, if required by any authority. However, a foreign national resident in.
India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require.
prior approval of the Reserve Bank.
Q.8. Can the branch / liaison office of a foreign company purchase immovable property in India?
A foreign company which has established a Branch Office or other place of business in India, in accordance with the.
Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, can.
acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for.
acquiring such a property should be made by way of foreign inward remittance through the proper banking channels. ا.
declaration in form IPI should be filed with the Reserve Bank within ninety days from the date of acquiring the property. Such a.
property can also be mortgaged with an Authorised Dealer as a security for the purpose of borrowings. On winding up of the.
business, the sale proceeds of such property can be repatriated only with the prior approval of the Reserve Bank. Further,
acquisition of immovable property by entities incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal.
and Bhutan and who have set up Branch Offices in India and would require prior approval of the Reserve Bank.
However, if the foreign company has established a Liaison Office in India, it cannot acquire immovable property. In such cases,
Liaison Offices can acquire property by way of lease not exceeding 5 years.
Q.9. Can a NRI/PIO acquire immovable property in India by way of gift? Cana foreign national acquire immovable.
property in India by way of gift?
(a) Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from.
India cannot be acquired by way of gift.
(b) A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of gift.
Q.10. Can a non-resident inherit immovable property in India?
Yes, a person resident outside India i. e. i) an NRI; ii) a PIO; and iii) a foreign national of non-Indian origin can inherit and.
hold immovable property in India from a person who was resident in India.
Q.11. From whom can a non-resident person inherit immovable property?
A person resident outside India (i. e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property.
(b) a person resident outside India.
exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.
B. Transfer of immovable property in India.
(i) Transfer by way of sale.
Q.12. Can an NRI/ PIO/foreign national sell his residential / commercial property?
(a) NRI can sell property in India to.
iii) a PIO – with the prior approval of the Reserve Bank.
Iran or Nepal or Bhutan can sell property in India with prior approval of the Reserve Bank to.
(a) NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of.
agricultural land/plantation property/ farm house in India.
(ii) Transfer by way of gift.
Q.14. Can a non-resident gift his residential / commercial property?
(a) NRI / PIO may gift residential / commercial property to –
Q.15. Can an NRI / PIO / foreign national holding an agricultural land / a plantation property / a farm house in India, gift.
(a) NRI / PIO can gift an agricultural land / a plantation property / a farm house in India only to a person resident in India.
who is a citizen of India.
(b) A foreign national of non-Indian origin would require the prior approval of the Reserve Bank to gift an agricultural land / a.
plantation property / a farm house in India.
(iii) Transfer through mortgage.
Q.16. Can residential / commercial property be mortgaged by NRI/ PIO?
i) NRI / PIO can mortgage a residential / commercial property to:
(a) an Authorised Dealer / the housing finance institution in India without the approval of Reserve Bank.
(b) a bank abroad, with the prior approval of the Reserve Bank.
ii) A foreign national of non-Indian origin can mortgage a residential / commercial property only with prior approval of the.
iii) A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA.
regulations has general permission to mortgage the property with an Authorised Dealer in India.
C. Mode of payment for purchase of immovable property in India.
Q.17. How can an NRI / PIO make payment for purchase of residential / commercial property in India?
Payment can be made by NRI / PIO out of:
No payment can be made either by traveller’s cheque or by foreign currency notes or by other mode except those specifically.
Q.18 Is repatriation of application money for booking of flat / payment made to the builder by NRI/ PIO allowed when.
the flat or plot is not allotted or the booking / contract is cancelled?
The Authorised Dealers can allow NRIs / PIOs to credit refund of application/ earnest money/ purchase consideration.
made by the house building agencies/ seller on account of non-allotment of flat/ plot/ cancellation of bookings/ deals for.
account, provided, the original payment was made out of NRE/FCNR account of the account holder or remittance from outside.
India through normal banking channels and the Authorised Dealer is satisfied about the genuineness of the transaction.
Q.19. Can NRI / PIO avail of loan from an authorised dealer for acquiring flat / house in India for his own residential.
use against the security of funds held in his NRE Fixed Deposit account / FCNR (B) account? How the loan can be.
FEMA 5/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time.
to time. Banks cannot grant fresh loans or renew existing loans in excess of Rs. 100 lakhs against NRE and FCNR (B)
deposits, either to the depositors or to third parties. The banks should also not undertake artificial slicing of the loan amount to.
circumvent the ceiling of Rs. 100 lakh.
Such loans can be repaid in the following manner:
crediting the borrower's loan account.
Q.20. Can NRI / PIO, avail of housing loan in Rupees from an Authorised Dealer or a Housing Finance Institution in.
India approved by the National Housing Bank for purchase of residential accommodation or for the purpose of repairs.
/ renovation / improvement of residential accommodation ? How can such loan be repaid?
Yes, NRI/PIO can avail of housing loan in Rupees from an Authorised Dealer or a Housing Finance Institution subject to.
certain terms and conditions laid down in Regulation 8 of Notification No. FEMA 4/2000-RB dated May 3, 2000 viz. الخارجية.
Exchange Management (Borrowing and lending in rupees) Regulations, 2000, as amended from time to time. Authorised.
Dealers/ Housing Finance Institutions can also lend to the NRIs/ PIOs for the purpose of repairs/renovation/ improvement of.
residential accommodation owned by them in India. Such a loan can be repaid (a) by way of inward remittance through normal.
banking channel or (b) by debit to the NRE / FCNR (B) / NRO account of the NRI / PIO or (c) out of rental income from such.
property; or (d) by the borrower's close relatives, as defined in section 6 of the Companies Act, 1956, through their account in.
India by crediting the borrower's loan account.
Q.21. Can NRI/PIO avail of housing loan in Rupees from his employer in India?
Yes, subject to certain terms and conditions given in Regulation 8A of Notification No. FEMA 4/2000-RB dated May 3,
2000 and A. P. (DIR Series) Circular No.27 dated October 10, 2003, i. e.,
(i) The loan shall be granted only for personal purposes including purchase of housing property in India;
(ii) The loan shall be granted in accordance with the lender’s Staff Welfare Scheme/Staff Housing Loan Scheme and subject to.
other terms and conditions applicable to its staff resident in India;
(iii) The lender shall ensure that the loan amount is not used for the purposes specified in sub-clauses (i) to (iv) of clause (1)
and in clause (2) of Regulation 6 of Notification No. FEMA.4/2000-RB dated May 3, 2000.
(iv) The lender shall credit the loan amount to the borrower’s NRO account in India or shall ensure credit to such account by.
(v) The loan agreement shall specify that the repayment of loan shall be by way of remittance from outside India or by debit to.
NRE/NRO/FCNR Account of the borrower and the lender shall not accept repayment by any other means.
D. Repatriation of sale proceeds of residential / commercial property.
purchased by NRI / PIO.
Q.22. Can NRI / PIO repatriate outside India the sale proceeds of immovable property held in India?
PIO, the Authorised Dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are.
(i) the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange law in force at.
the time of acquisition by him or the provisions of these Regulations;
(ii) the amount to be repatriated does not exceed:
وميدوت. the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels, or.
وميدوت. the amount paid out of funds held in Foreign Currency Non-Resident Account, or.
وميدوت. the foreign currency equivalent (as on the date of payment) of the amount paid where such payment was made from the.
funds held in Non-Resident External account for acquisition of the property; و.
(iii) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
For this purpose, repatriation outside India means the buying or drawing of foreign exchange from an authorised dealer in.
India and remitting it outside India through normal banking channels or crediting it to an account denominated in foreign.
currency or to an account in Indian currency maintained with an authorised dealer from which it can be converted in foreign.
Section 6 of the Companies Act, 1956), the amount can be credited to the NRO account of the NRI/PIO. The amount of capital.
gains, if any, arising out of sale of the property can also be credited to the NRO account.
NRI/PIO are also allowed by the Authorised Dealers to repatriate an amount up to USD 1 million per financial year out of the.
balance in the NRO account / sale proceeds of assets by way of purchase / the assets in India acquired by him by way of.
inheritance / legacy. This is subject to production of documentary evidence in support of acquisition, inheritance or legacy of.
assets by the remitter, and a tax clearance / no objection certificate from the Income Tax Authority for the remittance.
Remittances exceeding US $ 1,000,000 (US Dollar One million only) in any financial year requires prior permission of the.
(c) A person referred to in sub-section (5) of Section 6 of the Foreign Exchange Management Act 3[3] [3], or his successor shall.
not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable.
property referred to in that sub-section.
Please refer to the answer at Q.22 above. NRI/PIO may repatriate up to USD one million per financial year (April-March)
from their NRO account which would also include the sale proceeds of immovable property. There is no lock in period for sale.
of immovable property and repatriation of sale proceeds outside India.
Q.24. If a Rupee loan was taken by the NRI/ PIO from an Authorised Dealer or a Housing Finance Institution for.
purchase of residential property can the NRI / PIO repatriate the sale proceeds of such property?
Yes, Authorised Dealers have been authorised to allow repatriation of sale proceeds of residential accommodation.
purchased by NRIs/ PIOs out of funds raised by them by way of loans from the authorised dealers/ housing finance institutions.
to the extent such loan/s repaid by them are out of the foreign inward remittances received through normal banking channel or.
by debit to their NRE/FCNR accounts. The balance amount, if any, can be credited to their NRO account and the NRI/PIO may.
repatriate up to USD one million per financial year (April-March) subject to payment of applicable taxes from their NRO.
account balances which would also include the sale proceeds of the immovable property.
Q.25. If the immovable property was acquired by way of gift by the NRI/PIO, can he repatriate abroad the funds from.
sale of such property?
The sale proceeds of immovable property acquired by way of gift should be credited to NRO account only. من.
balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the satisfaction of.
Authorised Dealer and payment of applicable taxes.
Q.26. If the immovable property was received as inheritance by the NRI/PIO can he repatriate the sale proceeds?
Yes, general permission is available to the NRIs/PIO to repatriate the sale proceeds of the immovable property inherited.
from a person resident in India subject to the following conditions:
(i) The amount should not exceed USD one million, per financial year (ii) This is subject to production of documentary evidence.
in support of acquisition / inheritance of assets and an undertaking by the remitter and certificate by a Chartered Accountant in.
the formats prescribed by the Central Board of Direct Taxes vide their Circular No.4/2009 dated June 29, 2009 (iii) In cases of.
deed of settlement made by either of his parents or a close relative (as defined in section 6 of the Companies Act, 1956) and.
the settlement taking effect on the death of the settler (iv) the original deed of settlement and a tax clearance / No Objection.
Certificate from the Income-Tax Authority should be produced for the remittance (v) Where the remittance as above is made in.
more than one installment, the remittance of all such installments shall be made through the same Authorised Dealer (vi) In.
case of a foreign national, sale proceeds can be repatriated if the property is inherited from a person resident outside India with.
the prior approval of the Reserve Bank. The foreign national has to approach the Reserve Bank with documentary evidence in.
support of inheritance of the immovable property and the undertaking and the C. A. Certificate mentioned above.
The general permission for repatriation of sale proceeds of immovable property is not available to a citizen of Pakistan,
Bangladesh, Sri Lanka, China, Afghanistan and Iran and he has to seek specific approval of the Reserve Bank.
As FEMA, 1999 specifically permits transactions only in Indian Rupees with citizens of Nepal and Bhutan. Therefore, the.
question of repatriation of the sale proceeds in foreign exchange to Nepal and Bhutan would not arise.
E. Provisions for Foreign Embassies / Diplomats / Consulates General.
Q.27. Can Foreign Embassies / Diplomats / Consulates General purchase / sell immovable property in India?
In terms of Regulation 5A of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in.
India) Regulations 2000, Foreign Embassies/ Diplomats/ Consulates General, may purchase/ sell immovable property (other.
(i) Clearance from the Government of India, Ministry of External Affairs has been obtained for such purchase/sale; و.
(ii) The consideration for acquisition of immovable property in India is paid out of funds remitted from abroad through the.
normal banking channels.
F. Other Aspects.
Q.28. Can NRI / PIO rent out the residential / commercial property purchased out of foreign exchange / rupee funds?
Yes, NRI/PIO can rent out the property without the approval of the Reserve Bank. The rent received can be credited to.
NRO / NRE account or remitted abroad. Powers have been delegated to the Authorised Dealers to allow repatriation of current.
income like rent, dividend, pension, interest, etc. of NRIs/PIO who do not maintain an NRO account in India based on an.
appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance.
and that applicable taxes have been paid/provided for.
Q.29. Can a person who had bought immovable property, when he was a resident, continue to hold such property.
even after becoming an NRI/PIO? In which account can the sale proceeds of such immovable property be credited?
Yes, a person who had bought the residential / commercial property / agricultural land/ plantation property / farm house in.
India when he was a resident, continue to hold the immovable property without the approval of the Reserve Bank even after.
becoming an NRI/PIO. The sale proceeds may be credited to NRO account of the NRI /PIO.
Q.30. Can the sale proceeds of the immovable property referred to in Q. No. 29 be remitted abroad ?
Yes, From the balance in the NRO account, NRI/PIO may remit up to USD one million, per financial year, subject to the.
satisfaction of Authorised Dealer and payment of applicable taxes.
Q.31. Can foreign nationals of non-Indian origin resident in India or outside India who had earlier acquired immovable.
property under FERA with specific approval of the Reserve Bank continue to hold the same? Can they transfer such.
Yes, they may continue to hold the immovable property under holding license obtained from the Reserve Bank. ومع ذلك،
they can transfer the property only with the prior approval of the Reserve Bank.
Q.32. Is a resident in India governed by the provisions of the Foreign Exchange Management (Acquisition and.
transfer of immovable property in India) Regulations, 2000?
A person resident in India who is a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or.
Nepal or Bhutan is governed by the provisions of Foreign Exchange Management (Acquisition and Transfer of Immovable.
Property in India) Regulations, 2000, as amended from time to time, i. e. she/he would require prior approval of the Reserve.
Bank for acquisition and transfer of immovable property in India even though she/he is resident in India. Such requests are.
considered by the Reserve Bank in consultation with the Government in India.
The citizens of countries other than those listed above can be PIOs who are covered under the general permission (please.
refer to Q. No.1). The provisions relating to foreign national of non-Indian origin are covered in detail in Q Nos. 6 and 7.
Notification No. FEMA 146/2006-RB dated February 10, 2006 read with A. P.(DIR Series) Circular No. 5 dated 16.8.2006.
Notification No. FEMA 200/2009-RB dated October 5, 2009.
Circular on Acquisition and Transfer of Immovable Property in India by NRIs/PIOs/Foreign Nationals of Non-Indian Origin is.
also available on the website under the link “rbi. in  Sitemap Master Circulars”.
[2][2] A ‘Person of Indian Origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or.
Nepal or Bhutan) who.
at any time, held an Indian Passport or.
who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or.
the Citizenship Act, 1955 (57 of 1955).
[3][3] A person resident outside India may hold, own, transfer or invest in Indian currency, security or immovable property situated in India if such.
currency, security or property was acquired, held or owned by such person when he was resident in India or inherited from a person who was.
resident in India.
(Updated as on June 8, 2018)
Q1. What is the Asian Clearing Union (ACU)?
الجواب. The Asian Clearing Union (ACU) was established with its head quarters at Tehran, Iran, on December 9, 1974.
at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP), for.
promoting regional co-operation. The main objective of the clearing union is to facilitate payments among member.
countries for eligible transactions on a multilateral basis, thereby economizing on the use of foreign exchange.
reserves and transfer costs, as well as promoting trade among the participating countries.
Q2. Who are the members of the ACU?
الجواب. The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar,
Nepal, Pakistan and Sri Lanka are currently the members of the ACU.
Q3. Where are the instructions, relating to the ACU, available?
February 17, 2018 and in Master Circular No.14/2018-13 dated July 02, 2018 on export of goods and services.
Q4. How are the ACU transactions to be handled by Authorised Dealers (AD) in India?
الجواب. All transactions to be settled through the ACU will be handled by AD Categoty-I banks in the same manner as.
other normal foreign exchange transactions, through correspondent arrangements.
Q5. What is the unit of settlement of ACU transactions?
الجواب. The Asian Monetary Units (AMUs) is the common unit of account of ACU and is denominated as ‘ACU.
Dollar’ and ‘ACU Euro’, which is equivalent in value to one US Dollar and one Euro respectively. All instruments.
of payments under ACU have to be denominated in AMUs. Settlement of such instruments may be made by AD.
Category-I banks through the ACU Dollar Accounts and ACU Euro Accounts, which should be distinct from the.
other US Dollar and Euro accounts respectively maintained for non ACU transactions.
Q.6 What is the procedure for settlement of ACU transactions?
الجواب. i) Majorityof transactions, as possible, should be settled directly through the accounts maintained by AD.
Category-l banks with banks in the other participating countries and vice versa; only the spill-overs in either.
direction are required to be settled by the Central Banks in the countries concerned through the Clearing Union. في.
all times, the balances maintained in the ACU Dollar and ACU Euro accounts should be commensurate with.
requirements of the normal business.
ii) AD Category-l banks are permitted to settle commercial and other eligible transactions in much the same manner.
as other normal foreign exchange transactions.
Q.7 Can Authorized Dealer Category-l banks open ACU Dollar and ACU Euro Accounts in the name of all banks in.
all member countries including Pakistan without the prior approval of Reserve Bank of India?
الجواب. Yes, this is permissible.
Q.8 What is the mechanism for settlement through the ACU?
الجواب. Detailed operational guidelines are available in A. P.(DIR Series) Circular No. 35 dated February 17, 2018 and.
Master Circular No. 14/2018-13 dated July 02, 2018 on export of goods and services.
Q.9 What are the transactions which are eligible to be settled through the ACU?
الجواب. The following payments are eligible to be settled through ACU:from a resident in the territory of one participant to a resident in the territory of another participant;
for current international transactions as defined by the Articles of Agreement to the International Monetary.
permitted by the country in which the payer resides;
not declared ineligible as mentioned under Q.10.
for export / import transaction between ACU member countries on deferred payment terms.
Note:- Trade transaction with Myanmar may be settled in any freely convertible currency, in addition to the ACU.
Q.10 What are the payments that are not eligible to be settled through the ACU?
الجواب. The following payments are not eligible to be settled through ACU:Payments between Nepal and India and Bhutan and India, exception being made in the case of goods.
imported from India by an importer resident in Nepal who has been permitted by the Nepal Rastra Bank to.
make payments in foreign exchange. Such payments may be settled through ACU mechanism; و.
Payments which are not on account of current international transactions as defined by the International.
Monetary Fund, with the exception of such other transactions mutually accepted for settlement through ACU.
All eligible current account transactions including trade transactions with Iran should be settled in any.
permitted currency outside the ACU mechanism until further notice.
Q.11 Are all eligible transactions between member countries required to be settled through the ACU?
الجواب. نعم فعلا. Except the transactions mentioned at Q.10 (i),(ii)&(iii), However, trade transactions with Myanmar may.
be settled in any freely convertible currency, in addition to the ACU mechanism.
Exchange Earner's Foreign Currency (EEFC) Account.
(Updated as on 09.10.2018)
Q 1. What is an EEFC Account and what are its benefits?
الجواب. Exchange Earners' Foreign Currency Account (EEFC) is an account maintained in foreign currency with an.
Authorised Dealer i. e. a bank dealing in foreign exchange. It is a facility provided to the foreign exchange earners,
including exporters, to credit 100 per cent of their foreign exchange earnings to the account, so that the account.
holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction.
الجواب. All categories of foreign exchange earners, such as individuals, companies, etc. who are resident in India, may.
open EEFC accounts.
Q 3. What are the different types of EEFC accounts? Can interest be paid on these accounts?
الجواب. An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.
Q 4. How much of one’s foreign exchange earnings can be credited into an EEFC account?
الجواب. 100% foreign exchange earnings can be credited to the EEFC account 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. (A. P. (DIR. Series) Circular No. 12, dated July 31, 2018).
Q 5. Whether EEFC Account can be opened by Special Economic Zone (SEZ) Units?
الجواب. No, SEZ Units cannot open EEFC Accounts.
However, a unit located in a Special Economic Zone can open a Foreign Currency Account with an authorised.
dealer in India subject to certain conditions. SEZ Developers can open EEFC Accounts.
Q 6. Is there any Cheque facility available?
الجواب. نعم فعلا؛ Cheque facility is available for operation of the EEFC account.
Q 7. What are the permissible credits into this account?
currency loan or investment received from abroad or received for meeting specific obligations by the account.
ii) Payments received in foreign exchange by a 100 per cent Export Oriented Unit or a unit in (a) Export Processing.
Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park for supply of goods to similar.
such units or to a unit in Domestic Tariff Area;
iii) Payments received in foreign exchange by a unit in the Domestic Tariff Area for supply of goods to a unit in the.
Special Economic Zone (SEZ);
iv) Payment received by an exporter from an account maintained with an authorised dealer for the purpose of.
counter trade. (Counter trade is an arrangement involving adjustment of value of goods imported into India against.
v) Advance remittance received by an exporter towards export of goods or services;
vi) Payment received for export of goods and services from India, out of funds representing repayment of State.
Credit in U. S. Dollar held in the account of Bank for Foreign Economic Affairs, Moscow, with an authorised dealer.
vii) Professional earnings including directors fees, consultancy fees, lecture fees, honorarium and similar other.
earnings received by a professional by rendering services in his individual capacity;
viii) Re-credit of unutilised foreign currency earlier withdrawn from the account;
ix) Amount representing repayment by the account holder's importer customer, of loan/advances granted, to the.
exporter holding such account; و.
x) The disinvestment proceeds received by the resident account holder on conversion of shares held by him to.
ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of the.
Government of India.
Q 8. Can foreign exchange earnings received through an international credit card be credited to the EEFC account?
الجواب. Yes, foreign exchange earnings received through an international credit card for which reimbursement has been.
made in foreign exchange may be regarded as a remittance through normal banking channel and the same can be.
credited to the EEFC account.
Q 9. What are the permissible debits into this account?
الجواب. i) Payment outside India towards a permissible current account transaction [in accordance to the provisions of.
the Foreign Exchange Management (Current Account Transactions) Rules, 2000] and permissible capital account.
transaction [in accordance to the Foreign Exchange Management (Permissible Capital Account Transactions)
ii) Payment in foreign exchange towards cost of goods purchased from a 100 percent Export Oriented Unit or a Unit.
in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park.
iii) payment of customs duty in accordance with the provisions of the Foreign Trade Policy of the Central.
Government for the time being in force.
iv) Trade related loans/advances, extended by an exporter holding such account to his importer customer outside.
India, subject to compliance with the Foreign Exchange Management (Borrowing and Lending in Foreign.
Exchange) Regulations, 2000.
v) Payment in foreign exchange to a person resident in India for supply of goods/services including payments for.
Q 10. Is there any restriction on withdrawal in rupees of funds held in an EEFC account ?
الجواب. No, there is no restriction on withdrawal in Rupees of funds held in an EEFC account. However, the amount.
withdrawn in Rupees shall not be eligible for conversion into foreign currency and for re-credit to the account.
Q 11. Are there any restrictions on accessing the forex market by the EEFC account holder ?
الجواب. EEFC account holders are permitted to access the forex market for purchasing foreign exchange only after.
utilizing fully the available balances in the EEFC accounts . Accordingly ADs are required to obtain a declaration,
while selling foreign exchange to their constituents.
Q. 12. Whether the EEFC balances can be covered against exchange risk?
الجواب. Yes, the EEFC account balances can be hedged. The balances in the account sold forward by the account.
holders has to remain earmarked for delivery. However, the contracts can be rolled over.
Q. 13. Whether EEFC Account is permitted to be held jointly with a resident close relative?
الجواب. Resident individuals have been permitted to include resident close relative (s) as defined in the Companies Act,
1956 as a joint holder (s) in this EEFC bank Account. However, they shall not be eligible to operate the account.
during the life time of the resident account holder (A. P. (DIR. Series) Circular No. 15, dated September 15, 2018.
Facilities for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs)
(updated as on January 17, 2018)
In terms of the Foreign Exchange Management Act (FEMA), 1999 a person resident outside India means a person who is not.
resident in India.
What are the different types of accounts which can be maintained by an NRI 1/PIO2 in India?
If a person is NRI or PIO, she/he can, without the permission from the Reserve Bank, open, hold and maintain the different.
types of accounts given below with an Authorised Dealer in India, i. e. a bank authorised to deal in foreign exchange.
Savings accounts can also be maintained with the Post Offices in India. However, individuals/ entities of Bangladesh and.
Pakistan require prior approval of the Reserve Bank.
Types of accounts which can be maintained by an NRI / PIO in India.
A. Non-Resident Ordinary Rupee Account (NRO Account)
NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts.
Savings Account - Normally maintained for crediting legitimate dues /earnings / income such as dividends, interest etc.
Term Deposits - Banks are free to determine the interest rates. Interest rates offered by banks on NRO deposits cannot be.
higher than those offered by them on comparable domestic rupee deposits.
● Account should be denominated in Indian Rupees.
● Permissible credits to NRO account are transfers from rupee accounts of non-resident banks, remittances received in.
permitted currency from outside India through normal banking channels, permitted currency tendered by account holder during.
his temporary visit to India, legitimate dues in India of the account holder like current income like rent, dividend, pension,
interest, etc., sale proceeds of assets including immovable property acquired out of rupee/foreign currency funds or by way of.
● Eligible debits such as all local payments in rupees including payments for investments as specified by the Reserve Bank.
and remittance outside India of current income like rent, dividend, pension, interest, etc., net of applicable taxes, of the account.
subject to payment of applicable taxes.
● The limit of USD 1 million per financial year includes sale proceeds of immovable properties held by NRIs/PIOs.
● The accounts may be held jointly with residents and / or with non-resident Indian.
● The NRO account holder may opt for nomination facility.
● NRO (current/savings) account can also be opened by a foreign national of non-Indian origin visiting India, with funds.
remitted from outside India through banking channel or by sale of foreign exchange brought by him to India. The details of this.
facility are given in the FAQs on “Accounts opened by Foreign Nationals and Foreign Tourists” available on the RBI website.
● Loans to non-resident account holders and to third parties may be granted in Rupees by Authorized Dealer / bank against.
the security of fixed deposits subject to certain terms and conditions.
B. Non-Resident (External) Rupee Account (NRE Account)
● NRE account may be in the form of savings, current, recurring or fixed deposit accounts. Such accounts can be opened only.
by the non-resident himself and not through the holder of the power of attorney.
● NRIs as defined in Notification No. FEMA 5/2000-RB dated May 3, 2000 may be permitted to open NRE account with their.
resident close relatives (relative as defined in Section 6 of the Companies Act, 1956) on ‘former or survivor ‘ basis. ال.
resident close relative shall be eligible to operate the account as a Power of Attorney holder in accordance with the extant.
instructions during the life time of the NRI/PIO account holder.
● Account will be maintained in Indian Rupees.
● Balances held in the NRE account are freely repatriable.
● Accrued interest income and balances held in NRE accounts are exempt from Income tax and Wealth tax, respectively.
● Authorised dealers/authorised banks may at their discretion/commercial judgement allow for a period of not more than two.
together with the interest payable thereon are cleared/repaid within a period of two weeks, out of inward remittances through.
normal banking channels or by transfer of funds from other NRE/FCNR accounts.
Savings - Banks are free to determine the interest rates.
Term deposits – Banks are free to determine the interest rates of term deposits of maturity of one year and above. فائدة.
rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.
● Permissible credits to NRE account are inward remittance to India in permitted currency, proceeds of account payee.
cheques, demand drafts / bankers' cheques, issued against encashment of foreign currency, where the instruments issued to.
the NRE account holder are supported by encashment certificate issued by AD Category-I / Category-II, transfers from other.
NRE / FCNR accounts, sale proceeds of FDI investments, interest accruing on the funds held in such accounts, interest on.
Government securities/dividends on units of mutual funds purchased by debit to the NRE/FCNR(B) account of the holder,
certain types of refunds, etc.
● Eligible debits are local disbursements, transfer to other NRE / FCNR accounts of person eligible to open such accounts,
remittance outside India, investments in shares / securities/commercial paper of an Indian company, etc.
● Loans up to Rs.100 lakh can be extended against security of funds held in NRE Account either to the depositors or third.
payments or remittances through normal banking channels to the account holder himself.
C. Foreign Currency Non Resident (Bank) Account – FCNR (B) Account.
● FCNR (B) accounts are only in the form of term deposits of 1 to 5 years.
● All debits / credits permissible in respect of NRE accounts, including credit of sale proceeds of FDI investments, are.
permissible in FCNR (B) accounts also.
● Account can be in any freely convertible currency.
● Loans up to Rs.100 lakh can be extended against security of funds held in FCNR (B) deposit either to the depositors or third.
respect of FCNR (B) deposits of all maturities contracted effective from the close of business in India as on November 23,
2018, interest shall be paid within the ceiling rate of LIBOR/SWAP rates plus 125 basis points for the respective.
currency/corresponding maturities (as against LIBOR/SWAP rates plus 100 basis points effective from close of business on.
November 15, 2008). On floating rate deposits, interest shall be paid within the ceiling of SWAP rates for the respective.
currency/maturity plus 125 basis points. For floating rate deposits, the interest reset period shall be six months.
● When an account holder becomes a person resident in India, deposits may be allowed to continue till maturity at the.
contracted rate of interest, if so desired by him.
● Terms and conditions as applicable to 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 FCNR (B). NRI can open joint account with a resident close relative (relative as defined in Section 6 of the.
Companies Act, 1956) on former or survivor basis. The resident close relative will be eligible to operate the account as a Power.
Is the permission of the Reserve Bank required for opening the various accounts, mentioned above, by Bangladesh /
Opening of accounts by individuals/entities of Bangladesh / Pakistan nationality requires prior approval of the Reserve Bank.
All such requests may be referred to the Chief General Manager-in-Charge, Foreign Exchange Department, Foreign.
Investment Division, Reserve Bank of India, Central Office, Mumbai - 400 001.
Can an individual resident Indian borrow money from his close relatives outside India?
Yes, an individual resident Indian can borrow sum not exceeding USD 250,000 or its equivalent from his close relatives.
staying outside India, subject to the conditions that:
the minimum maturity period of the loan is one year;
the loan is free of interest; و.
the amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by.
debit to the NRE/FCNR(B) account of the NRI.
Can an individual resident lend money to his close relative NRI / PIO?
Yes, an individual resident can lend money by way of crossed cheque /electronic transfer within the overall limit of USD.
200,000 per financial year under the Liberalised Remittance Scheme, to meet the borrower’s personal or business.
requirements in India, subject to conditions. The loan should be interest free and have a maturity of minimum one year and.
cannot be remitted outside India.
Can an individual resident repay loans of close relative NRIs to banks in India?
Yes, where an authorised dealer in India has granted loan to a non-resident Indian such loans may also be repaid by resident.
close relative (relative as defined in Section 6 of the Companies Act, 1956), of the Non-Resident Indian by crediting the.
borrower's loan account through the bank account of such relative.
What are the other facilities available to NRIs/PIO?
A. Investment facilities for NRIs.
NRI may, without limit, purchase on repatriation basis:
● Government dated securities / Treasury bills.
● Units of domestic mutual funds;
● Bonds issued by a public sector undertaking (PSU) in India.
● Non-convertible debentures of a company incorporated in India.
● Perpetual debt instruments and debt capital instruments issued by banks in India.
with the terms and conditions stipulated in the notice inviting bids.
● Shares and convertible debentures of Indian companies under the FDI scheme (including automatic route & FIPB), subject.
to the terms and conditions specified in Schedule 1 to the FEMA Notification No. 20/2000- RB dated May 3, 2000, as amended.
from time to time.
● Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme,
subject to the terms and conditions specified in Schedule 3 to the FEMA Notification No. 20/2000- RB dated May 3, 2000, as.
amended from time to time.
NRI may, without limit, purchase on non-repatriation basis :
● Government dated securities / Treasury bills.
● Units of domestic mutual funds.
● Units of Money Market Mutual Funds.
● National Plan/Savings Certificates.
● Non-convertible debentures of a company incorporated in India.
● Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme,
subject to the terms and conditions specified in Schedules 3 and 4 to the FEMA Notification No. 20/2000- RB dated May 3,
2000, as amended from time to time.
● Exchange traded derivative contracts approved by the SEBI, from time to time, out of INR funds held in India on nonrepatriable basis, subject to the limits prescribed by the SEBI.
Note : NRIs are not permitted to invest in small savings or Public Provident Fund (PPF).
B. Investment in Immovable Property.
● NRI / PIO4 / Foreign National who is a person resident in India (citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan,
China, Iran, Nepal and Bhutan would require prior approval of the Reserve Bank) may acquire immovable property in India.
other than agricultural land/ plantation property or a farm house out of repatriable and / or non-repatriable funds.
● The payment of purchase price, if any, should be made out of.
(i) funds received in India through normal banking channels by way of inward remittance from any place outside India or.
(ii) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by.
the Reserve Bank.
No payment of purchase price for acquisition of immovable property shall be made either by traveller’s cheque or by.
foreign currency notes or by other mode other than those specifically permitted as above.
● NRI may acquire any immovable property in India other than agricultural land / farm house plantation property, by way of gift.
from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin.
● NRI may acquire any immovable property in India by way of inheritance from a person resident outside India who had.
acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him.
or the provisions of these Regulations or from a person resident in India.
● An NRI may transfer any immovable property in India to a person resident in India.
● NRI may transfer any immovable property other than agricultural or plantation property or farm house to a person resident.
outside India who is a citizen of India or to a person of Indian origin resident outside India.
In respect of such investments, NRIs are eligible to repatriate:
● The sale proceeds of immovable property in India if the property was acquired out of foreign exchange sources i. e. remitted.
through normal banking channels / by debit to NRE / FCNR (B) account.
● The amount to be repatriated should not exceed the amount paid for the property in foreign exchange received through.
normal banking channel or by debit to NRE account (foreign currency equivalent, as on the date of payment) or debit to FCNR.
● In the event of sale of immovable property, other than agricultural land / farm house / plantation property in India, by a person.
resident outside India who is a citizen of India / PIO, the repatriation of sale proceeds is restricted to not more than two.
residential properties subject to certain conditions.
● If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million per financial year.
out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or.
settlement), for all the bonafide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance.
● Refund of (a) application / earnest money / purchase consideration made by house-building agencies/seller on account of.
non-allotment of flats / plots and (b) cancellation of booking/deals for purchase of residential/commercial properties, together.
with interest, net of taxes, provided original payment is made out of NRE/FCNR (B) account/inward remittances.
Repayment of Housing Loan of NRI / PIOs by close relatives of the borrower in India.
Housing Loan in rupees availed of by NRIs/ PIOs from ADs / Housing Financial Institutions in India can be repaid by the close.
● Returning NRIs/PIOs may continue to hold, own, transfer or invest in foreign currency, foreign security or any immovable.
property situated outside India, if such currency, security or property was acquired, held or owned when resident outside India.
● The income and sale proceeds of assets held abroad need not be repatriated.
حساب العملة الأجنبية.
● A person resident in India who has gone abroad for studies or who is on a visit to a foreign country may open, hold and.
maintain a Foreign Currency Account with a bank outside India during his stay outside India, provided that on his return to.
India, the balance in the account is repatriated to India. However, short visits to India by the student who has gone abroad for.
● A person resident in India who has gone out of India to participate in an exhibition/trade fair outside India may open, hold and.
maintain a Foreign Currency Account with a bank outside India for crediting the sale proceeds of goods on display in the.
exhibition/trade fair. However, the balance in the account is repatriated to India through normal banking channels within a.
period of one month from the date of closure of the exhibition/trade fair.
Resident Foreign Currency Account.
● Returning NRIs /PIOs may open, hold and maintain with an authorised dealer in India a Resident Foreign Currency (RFC)
Account to transfer balances held in NRE/FCNR(B) accounts.
● Proceeds of assets held outside India at the time of return can be credited to RFC account.
● The funds in RFC accounts are free from all restrictions regarding utilisation of foreign currency balances including any.
restriction on investment in any form outside India.
● RFC accounts can be maintained in the form of current or savings or term deposit accounts, where the account holder is an.
individual and in the form of current or term deposits in all other cases.
RFC accounts are permitted to be held jointly with the resident close relative(s) as defined in the Companies Act, 1956 as joint.
holder (s) in their RFC bank account on ‘former or survivor basis’. However, such resident Indian close relative, now being.
made eligible to become joint account holder shall not be eligible to operate the account during the life time of the resident.
Can Exchange Earners Foreign Currency (EEFC) accounts be held jointly with a - resident Indian?
Yes, EEFC account of a resident individual can be held jointly with a resident close relative on a ‘former or survivor’ basis.
However, such resident Indian close relative will not be eligible to operate the account during the life time of the resident.
Can a resident individual holding a savings bank account include nonresident close relative as a joint account.
accounts on ‘former or survivor’ basis. However, such non - resident Indian close relatives shall not be eligible to operate the.
account during the life time of the resident account holder.
Can a resident individual gift shares/securities/convertible debentures etc to NRI close relative?
Yes, a resident individual is permitted to gift shares/securities/convertible debentures etc to NRI close relative up to USD.
50,000 per financial year subject to certain conditions.
Can a resident individual give rupee gifts to his visiting NRI/PIO close relatives?
Yes, a resident individual can give rupee gifts to his visiting NRI/PIO close relatives by way of crossed cheque/electronic.
transfer within the overall limit of USD 200,000 per financial year for the resident individual and the gifted amount should be.
What types of services can be provided by a resident individual to his / her nonresident close relatives?
A resident may make payment in rupees towards meeting expenses on account of boarding, lodging and services related.
thereto or travel to and from and within India of a person resident outside India who is on a visit to India. Further, where the.
medical expenses in respect of NRI close relative are paid by a resident individual, such a payment being in the nature of a.
resident to resident transaction may also be covered under the term “services”.
A Person of Indian Origin (PIO) for this purpose is defined in Regulation 2 of FEMA Notification ibid as a citizen of any country other than.
Bangladesh or Pakistan, if (a) he at any time held Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India.
by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or a person referred to.
in sub-clause (a) or (b).
'Close relative' means relative as defined in Section 6 of the Companies Act, 1956.
'A Person of Indian Origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal.
or Bhutan) who (i) at any time, held an Indian Passport or (ii) who or either of whose father or mother or whose grandfather or grandmother was a.
citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
(Updated up to June 26, 2018)
These FAQs cover broadly the following areas :
I. Foreign Direct Investment.
II. Foreign Technology Collaboration Agreement.
III. Foreign Portfolio Investment.
Investment in Government Securities and Corporate.
V. Foreign Venture Capital Investment.
Branch/ Project/ Liaison Office of a foreign company in.
VII. Investment by QFIs.
I. Foreign Direct Investment (FDI)
Q. 1. What are the forms in which business can be conducted by a foreign company in India?
الجواب. A foreign company planning to set up business operations in India may:
Incorporate a company under the Companies Act, 1956, as a Joint Venture or a Wholly Owned Subsidiary.
which can undertake activities permitted under the Foreign Exchange Management (Establishment in India.
of Branch Office or Other Place of Business) Regulations, 2000.
Q.2. What is the procedure for receiving Foreign Direct Investment in an Indian company?
الجواب. An Indian company may receive Foreign Direct Investment under the two routes as given under:
أنا. Automatic Route.
FDI is allowed under the automatic route without prior approval either of the Government or the Reserve Bank of.
India in all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from.
ثانيا. Government Route.
FDI in activities not covered under the automatic route requires prior approval of the Government which are.
considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of.
Finance. Application can be made in Form FC-IL, which can be downloaded from dipp. gov. in. عادي.
paper applications carrying all relevant details are also accepted. No fee is payable.
The Indian company having received FDI either under the Automatic route or the Government route is required to.
comply with provisions of the FDI policy including reporting the FDI to the Reserve Bank. as stated in Q 4.
Q.3. What are the instruments for receiving Foreign Direct Investment in an Indian company?
الجواب. Foreign investment is reckoned as FDI only if the investment is made in equity shares , fully and mandatorily.
convertible preference shares and fully and mandatorily convertible debentures with the pricing being decided.
upfront as a figure or based on the formula that is decided upfront. Any foreign investment into an instrument issued.
by an Indian company which:
gives an option to the investor to convert or not to convert it into equity or.
does not involve upfront pricing of the instrument.
as a date would be reckoned as ECB and would have to comply with the ECB guidelines.
The FDI policy provides that the price/ conversion formula of convertible capital instruments should be determined.
upfront at the time of issue of the instruments. The price at the time of conversion should not in any case be lower.
than the fair value worked out, at the time of issuance of such instruments, in accordance with the extant FEMA.
regulations [the DCF method of valuation for the unlisted companies and valuation in terms of SEBI (ICDR)
Regulations, for the listed companies].
الجواب. An Indian company issuing shares /convertible debentures under FDI Scheme to a person resident outside India.
shall receive the amount of consideration required to be paid for such shares /convertible debentures by:
(i) inward remittance through normal banking channels.
(ii) debit to NRE / FCNR account of a person concerned maintained with an AD category I bank.
(iii) conversion of royalty / lump sum / technical know how fee due for payment or conversion of ECB, shall be.
treated as consideration for issue of shares.
(iv) conversion of import payables / pre incorporation expenses / share swap can be treated as consideration for.
issue of shares with the approval of FIPB.
(v) debit to non-interest bearing Escrow account in Indian Rupees in India which is opened with the approval from.
AD Category – I bank and is maintained with the AD Category I bank on behalf of residents and non-residents.
towards payment of share purchase consideration.
If the shares or convertible debentures are not issued within 180 days from the date of receipt of the inward.
remittance or date of debit to NRE / FCNR (B) / Escrow account, the amount shall be refunded. Further, Reserve.
Bank may on an application made to it and for sufficient reasons permit an Indian Company to refund / allot shares.
for the amount of consideration received towards issue of security if such amount is outstanding beyond the period.
of 180 days from the date of receipt.
Q.5. Which are the sectors where FDI is not allowed in India, both under the Automatic Route as well as under the.
الجواب. FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
i) Atomic Energy.
ii) Lottery Business.
iii) Gambling and Betting.
iv) Business of Chit Fund.
v) Nidhi Company.
vi) Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and.
cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied.
sectors) and Plantations activities (other than Tea Plantations) (c. f. Notification No. FEMA 94/2003-RB dated June.
premises, roads or bridges to the extent specified in Notification No. FEMA 136/2005-RB dated July 19, 2005.
viii) Trading in Transferable Development Rights (TDRs).
ix) Manufacture of cigars , cheroots, cigarillos and cigarettes , of tobacco or of tobacco substitutes.
(Please also see the the website of Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce &
Industry, Government of India at dipp. gov. in for details regarding sectors and investment limits therein.
allowed, under FDI)
Q.6. What is the procedure to be followed after investment is made under the Automatic Route or with Government.
الجواب. A two-stage reporting procedure has to be followed :.
والثور؛ On receipt of share application money:
Within 30 days of receipt of share application money/amount of consideration from the non-resident investor, the.
Indian company is required to report to the Foreign Exchange Department, Regional Office concerned of the.
Reserve Bank of India, under whose jurisdiction its Registered Office is located, the Advance Reporting Form,
containing the following details :
Name and address of the foreign investor/s;
Date of receipt of funds and the Rupee equivalent;
Name and address of the authorised dealer through whom the funds have been received;
Details of the Government approval, if any; و.
KYC report on the non-resident investor from the overseas bank remitting the amount of consideration.
The Indian company has to ensure that the shares are issued within 180 days from the date of inward remittance.
which otherwise would result in the contravention / violation of the FEMA regulations.
والثور؛ Upon issue of shares to non-resident investors:
Within 30 days from the date of issue of shares, a report in Form FC-GPR - PART A together with the following.
documents should be filed with the Foreign Exchange Department, Regional Office concerned of the Reserve Bank.
والثور؛ Certificate from the Company Secretary of the company accepting investment from persons resident outside India.
The company has complied with the procedure for issue of shares as laid down under the FDI scheme as.
indicated in the Notification No. FEMA 20/2000-RB dated 3rd May 2000, as amended from time to time.
والثور؛ The investment is within the sectoral cap / statutory ceiling permissible under the Automatic Route of the Reserve.
Bank and it fulfills all the conditions laid down for investments under the Automatic Route,
والثور؛ Shares have been issued in terms of SIA/FIPB approval No. --------------------- dated -------------------- (enclosing.
the FIPB approval copy)
والثور؛ Certificate from Statutory Auditors/ SEBI registered Merchant Banker / Chartered Accountant indicating the.
manner of arriving at the price of the shares issued to the persons resident outside India.
Q.7. What are the guidelines for transfer of existing shares from non-residents to residents or residents to nonresidents?
الجواب. The term ‘transfer’ is defined under FEMA as including "sale, purchase, acquisition, mortgage, pledge, gift,
loan or any other form of transfer of right, possession or lien” .
The following share transfers are allowed without the prior approval of the Reserve Bank of India.
A. Transfer of shares from a Non Resident to Resident under the FDI scheme where the pricing guidelines under.
FEMA, 1999 are not met provided that :i. The original and resultant investment are in line with the extant FDI policy and FEMA regulations in terms of.
sectoral caps, conditionalities (such as minimum capitalization, etc.), reporting requirements, documentation, etc.;
ثانيا. The pricing for the transaction is compliant with the specific/explicit, extant and relevant SEBI regulations /
guidelines (such as IPO, Book building, block deals, delisting, exit, open offer/ substantial acquisition / SEBI SAST,
ثالثا. Chartered Accountants Certificate to the effect that compliance with the relevant SEBI regulations / guidelines as.
indicated above is attached to the form FC-TRS to be filed with the AD bank.
B. Transfer of shares from Resident to Non Resident:
i) where the transfer of shares requires the prior approval of the FIPB as per the extant FDI policy provided that :
a) the requisite approval of the FIPB has been obtained; و.
b) the transfer of share adheres with the pricing guidelines and documentation requirements as specified by the.
ii) where SEBI (SAST) guidelines are attracted subject to the adherence with the pricing guidelines and.
documentation requirements as specified by Reserve Bank of India from time to time.
iii) where the pricing guidelines under the Foreign Exchange Management Act (FEMA), 1999 are not met provided.
The resultant FDI is in compliance with the extant FDI policy and FEMA regulations in terms of sectoral.
caps, conditionalities (such as minimum capitalization, etc.), reporting requirements, documentation etc.;
The pricing for the transaction is compliant with the specific/explicit, extant and relevant SEBI regulations /
guidelines (such as IPO, Book building, block deals, delisting, exit, open offer/ substantial acquisition / SEBI.
Chartered Accountants Certificate to the effect that compliance with the relevant SEBI regulations /
guidelines as indicated above is attached to the form FC-TRS to be filed with the AD bank.
iv) where the investee company is in the financial sector provided that :
a) NOCs are obtained from the respective financial sector regulators/ regulators of the investee company as well as.
transferor and transferee entities and such NOCs are filed along with the form FC-TRS with the AD bank; و.
b) The FDI policy and FEMA regulations in terms of sectoral caps, conditionalities (such as minimum capitalization,
etc.), reporting requirements, documentation etc., are complied with.
Transfer of shares/ fully and mandatorily convertible debentures by way of Gift:
A person resident outside India can freely transfer shares/ fully and mandatorily convertible debentures by way of.
gift to a person resident in India as under:
Any person resident outside India, (not being a NRI or an erstwhile OCB), can transfer by way of gift the.
shares/ fully and mandatorily convertible debentures to any person resident outside India (including NRIs.
but excluding OCBs).
Note: Transfer of shares from or by erstwhile OCBs would require prior approval of the Reserve Bank of.
a NRI may transfer by way of gift, the shares/convertible debentures held by him to another NRI only,
Any person resident outside India may transfer share/ fully and mandatorily convertible debentures to a.
person resident in India by way of gift.
الجواب. A person resident in India who proposes to transfer security by way of gift to a person resident outside India.
[other than an erstwhile OCBs] shall make an application to the Central Office of the Foreign Exchange Department,
Reserve Bank of India furnishing the following information, namely:
Name and address of the transferor and the proposed transferee.
Relationship between the transferor and the proposed transferee.
Reasons for making the gift.
In case of Government dated securities, treasury bills and bonds, a certificate issued by a Chartered.
Accountant on the market value of such securities.
In case of units of domestic mutual funds and units of Money Market Mutual Funds, a certificate from the.
issuer on the Net Asset Value of such security.
In case of shares/ fully and mandatorily convertible debentures, a certificate from a Chartered Accountant on.
the value of such securities according to the guidelines issued by the Securities & Exchange Board of India.
or the Discounted Free Cash Flow (DCF) method with regard to listed companies and unlisted companies,
Certificate from the Indian company concerned certifying that the proposed transfer of shares/convertible.
debentures, by way of gift, from resident to the non-resident shall not breach the applicable sectoral cap/ FDI.
limit in the company and that the proposed number of shares/convertible debentures to be held by the nonresident transferee shall not exceed 5 per cent of the paid up capital of the company.
The transfer of security by way of gift may be permitted by the Reserve bank provided:
(i) The donee is eligible to hold such security under Schedules 1, 4 and 5 to Notification No. FEMA 20/2000-RB.
dated May 3, 2000, as amended from time to time.
(ii) The gift does not exceed 5 per cent of the paid up capital of the Indian company/ each series of debentures/ each.
mutual fund scheme.
(iii) The applicable sectoral cap/ foreign direct investment limit in the Indian company is not breached.
(iv) The donor and the donee are relatives as defined in section 6 of the Companies Act, 1956.
(v) The value of security to be transferred by the donor together with any security transferred to any person residing.
outside India as gift in the financial year does not exceed the rupee equivalent of USD 50000.
Q.9. What if the transfer of shares from resident to non-resident does not fall under the above categories?
The following instances of transfer of shares from residents to non-residents by way of sale or otherwise requires.
(i) Transfer of shares of companies engaged in sector falling under the Government Route.
(ii) Transfer of shares resulting in foreign investments in the Indian company, breaching the sectoral cap applicable.
Prior permission of the Reserve Bank in certain cases for acquisition / transfer of security.
i) Transfer of shares or convertible debentures from residents to non-residents by way of sale requires prior approval.
of Reserve Bank in case where the non-resident acquirer proposes deferment of payment of the amount of.
consideration. Further, in case approval is granted for the transaction, the same should be reported in Form FC-TRS.
to the AD Category – I bank, within 60 days from the date of receipt of the full and final amount of consideration.
(ii) A person resident in India, who intends to transfer any security, by way of gift to a person resident outside India,
has to obtain prior approval from the Reserve Bank.
Any other case not covered by General Permission.
Q 10. What are the reporting obligations in case of transfer of shares between resident and non-resident ?
الجواب. The transaction should be reported by submission of form FC-TRS to the AD Category – I bank, within 60.
days from the date of receipt/remittance of the amount of consideration. The onus of submission of the form FCTRS within the given timeframe would be on the resident in India, the transferor or transferee, as the case may be.
Q.11. What is the method of payment and remittance/credit of sale proceeds in case of transfer of shares.
between resident and non-resident?
الجواب. The sale consideration in respect of the shares purchased by a person resident outside India shall be remitted to.
India through normal banking channels. In case the buyer is a Foreign Institutional Investor (FII), payment should.
be made by debit to its Special Non-Resident Rupee Account. In case the buyer is a NRI, the payment may be made.
by way of debit to his NRE/FCNR (B) accounts. However, if the shares are acquired on non-repatriation basis by.
NRI, the consideration shall be remitted to India through normal banking channel or paid out of funds held in.
NRE/FCNR (B)/NRO accounts.
The sale proceeds of shares (net of taxes) sold by a person resident outside India) may be remitted outside India. في.
case of FII the sale proceeds may be credited to its special Non-Resident Rupee Account. In case of NRI, if the.
accounts and if the shares sold were held on non repatriation basis, the sale proceeds may be credited to his NRO.
account subject to payment of taxes. The sale proceeds of shares (net of taxes) sold by an erstwhile OCB may be.
remitted outside India directly if the shares were held on repatriation basis and if the shares sold were held on nonrepatriation basis, the sale proceeds may be credited to its NRO (Current) Account subject to payment of taxes,
except in the case of erstwhile OCBs whose accounts have been blocked by Reserve Bank.
Q. 12. Are the investments and profits earned in India repatriable?
الجواب. All foreign investments are freely repatriable (net of applicable taxes) except in cases where:
i) the foreign investment is in a sector like Construction and Development Projects and Defence wherein the foreign.
investment is subject to a lock-in-period; و.
ii) NRIs choose to invest specifically under non-repatriable schemes.
Further, dividends (net of applicable taxes) declared on foreign investments can be remitted freely through an.
Authorised Dealer bank.
Q.13. What are the guidelines on issue and valuation of shares in case of existing companies?
(i) the price worked out in accordance with the SEBI guidelines, as applicable, where the shares of the company is.
listed on any recognised stock exchange in India;
(ii) the fair valuation of shares done by a SEBI registered Category - I Merchant Banker or a Chartered Accountant.
as per the discounted free cash flow method, where the shares of the company is not listed on any recognised stock.
exchange in India; و.
(iii) the price as applicable to transfer of shares from resident to non-resident as per the pricing guidelines laid down.
by the Reserve Bank from time to time, where the issue of shares is on preferential allotment.
B. The price of shares transferred from resident to a non-resident and vice versa should be determined as under:
i) Transfer of shares from a resident to a non-resident:
a) In case of listed shares, at a price which is not less than the price at which a preferential allotment of shares would.
be made under SEBI guidelines.
b) In case of unlisted shares at a price which is not less than the fair value as per the Discounted Free Cash Flow.
(DCF) Method to be determined by a SEBI registered Category-I - Merchant Banker/Chartered Accountant.
which the transfer of shares would have been made from a resident to a non-resident.
In any case, the price per share arrived at as per the above method should be certified by a SEBI registered.
Category-I-Merchant Banker / Chartered Accountant.
Q. 14. What are the regulations pertaining to issue of ADRs/ GDRs by Indian companies?
accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares.
(Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Government of India.
thereunder from time to time.
A company can issue ADRs / GDRs, if it is eligible to issue shares to persons resident outside India under the.
FDI Scheme. However, an Indian listed company, which is not eligible to raise funds from the Indian Capital.
Market including a company which has been restrained from accessing the securities market by the.
Securities and Exchange Board of India (SEBI) will not be eligible to issue ADRs/GDRs.
Unlisted companies, which have not yet accessed the ADR/GDR route for raising capital in the international.
market, would require prior or simultaneous listing in the domestic market, while seeking to issue such.
overseas instruments. Unlisted companies, which have already issued ADRs/GDRs in the international.
market, have to list in the domestic market on making profit or within three years of such issue of.
ADRs/GDRs, whichever is earlier.
After the issue of ADRs/GDRs, the company has to file a return in Form DR as indicated in the RBI.
Notification No. FEMA.20/ 2000-RB dated May 3, 2000, as amended from time to time. The company is.
also required to file a quarterly return in Form DR - Quarterly as indicated in the RBI Notification ibid.
There are no end-use restrictions on GDR/ADR issue proceeds, except for an express ban on investment in.
real estate and stock markets.
Erstwhile OCBs which are not eligible to invest in India and entities prohibited to buy, sell or deal in.
securities by SEBI will not be eligible to subscribe to ADRs / GDRs issued by Indian companies.
The pricing of ADR / GDR issues including sponsored ADRs / GDRs should be made at a price determined.
under the provisions of the Scheme of issue of Foreign Currency Convertible Bonds and Ordinary Shares.
(Through Depository Receipt Mechanism) Scheme, 1993 and guidelines issued by the Government of India.
and directions issued by the Reserve Bank, from time to time.
Q.15. What is meant by Sponsored ADR & Two-way fungibility Scheme of ADR/ GDR?
الجواب. Sponsored ADR/GDR: An Indian company may sponsor an issue of ADR/ GDR with an overseas depository.
the same have been issued vide A. P. (DIR Series) Circular No.52 dated November 23, 2002.
Two-way fungibility Scheme: Under the limited Two-way fungibility Scheme, a registered broker in India can.
purchase shares of an Indian company on behalf of a person resident outside India for the purpose of converting the.
shares so purchased into ADRs/ GDRs. The operative guidelines for the same have been issued vide A. P. (DIR.
Series) Circular No.21 dated February 13, 2002. The Scheme provides for purchase and re-conversion of only as.
many shares into ADRs/ GDRs which are equal to or less than the number of shares emerging on surrender of.
ADRs/ GDRs which have been actually sold in the market. Thus, it is only a limited two-way fungibility wherein.
the headroom available for fresh purchase of shares from domestic market is restricted to the number of converted.
shares sold in the domestic market by non-resident investors. So long the ADRs/ GDRs are quoted at discount to the.
value of shares in domestic market, an investor will gain by converting the ADRs/ GDRs into underlying shares and.
selling them in the domestic market. In case of ADRs/ GDRs being quoted at premium, there will be demand for.
reverse fungibility, i. e. purchase of shares in domestic market for re-conversion into ADRs/ GDRs. The scheme is.
operationalised through the Custodians of securities and stock brokers under SEBI.
Q.16. Can Indian companies issue Foreign Currency Convertible Bonds (FCCBs)?
الجواب. FCCBs can be issued by Indian companies in the overseas market in accordance with the Scheme for Issue of.
Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme,
The FCCB being a debt security, the issue needs to conform to the External Commercial Borrowing guidelines,
issued by RBI vide Notification No. FEMA 3/2000-RB dated May 3, 2000, as amended from time to time.
Q.17. Can a foreign investor invest in Preference Shares? What are the regulations applicable in case of such.
الجواب. نعم فعلا. Foreign investment through preference shares is treated as foreign direct investment. ومع ذلك، فإن.
preference shares should be fully and mandatorily convertible into equity shares within a specified time to be.
reckoned as part of share capital under FDI. Investment in other forms of preference shares requires to comply with.
Q.18. Can a company issue debentures as part of FDI?
الجواب. نعم فعلا. Debentures which are fully and mandatorily convertible into equity within a specified time would be.
reckoned as part of share capital under the FDI Policy.
Q.19. Can shares be issued against Lumpsum Fee, Royalty, ECB , Import of capital goods/ machineries /
equipments (excluding second-hand machine) and Pre-operative/pre-incorporation expenses (including payments of.
الجواب. An Indian company eligible to issue shares under the FDI policy and subject to pricing guidelines as specified.
by the Reserve Bank from time to time, may issue shares to a person resident outside India :
against External Commercial Borrowing (ECB) (other than import dues deemed as ECB or Trade Credit as.
per RBI Guidelines).
With prior approval from FIPB for against import of capital goods/ machineries / equipments and Preoperative/pre-incorporation expenses subject to the compliance with the extant FEMA regulations and.
Dir Series 74 dated June 30,2018.
Provided, that the foreign equity in the company, after such conversion, is within the sectoral cap.
Q.20. What are the other modes of issues of shares for which general permission is available under RBI Notification.
No. FEMA 20 dated May 3, 2000?
owned subsidiary abroad who are resident outside India directly or through a Trust up to 5% of the paid up.
capital of the company.
Issue and acquisition of shares by non-residents after merger or de-merger or amalgamation of Indian.
Issue shares or preference shares or convertible debentures on rights basis by an Indian company to a person.
resident outside India.
Q.21. Can a foreign investor invest in shares issued by an unlisted company in India?
الجواب. نعم فعلا. As per the regulations/guidelines issued by the Reserve Bank of India/Government of India, investment.
can be made in shares issued by an unlisted Indian company.
Q.22. Can a foreigner set up a partnership/ proprietorship concern in India?
الجواب. No. Only NRIs/PIOs are allowed to set up partnership/proprietorship concerns in India on non-repatriation.
Q.23. Can a foreign investor invest in Rights shares issued by an Indian company at a discount?
الجواب. There are no restrictions under FEMA for investment in Rights shares issued at a discount by an Indian.
company, provided the rights shares so issued are being offered at the same price to residents and non-residents. ال.
offer on right basis to the person’s resident outside India shall be:
(a) in the case of shares of a company listed on a recognized stock exchange in India, at a price as determined by the.
(b) in the case of shares of a company not listed on a recognized stock exchange in India, at a price which is not less.
than the price at which the offer on right basis is made to resident shareholders.
Q.24. Can a AD bank allow pledge of shares of an Indian company held by non-resident investor in favor of an.
Indian bank or an Overseas bank?
الجواب. Yes, the same has been allowed vide the instruction and subject to compliance with the terms and conditions as.
mentioned in the AP Dir Series Circular No 57 dated May 2, 2018.
Q.25. What declaration/certificate needs to be obtained by the AD in respect of utilization of loan proceeds for the.
declared purpose, consequent to pledge of shares, to comply with para. 2 (i) (b) of the A. P. (DIR Series) Circular.
No. 57 dated May 2, 2018?
الجواب. The AD may obtain a board resolution ‘ex ante’ passed by the Board of Directors of the investee company, that.
the loan proceeds received consequent to pledge of shares, will be utilised by the investee company for the declared.
The AD may also obtain a certificate from the statutory auditor ‘ex post’ of the investee company, that the loan.
proceeds received consequent to pledge of shares, have been utilised by the investee company for the declared.
II. Foreign Technology Collaboration Agreement.
Whether the payment in terms of foreign technology collaboration agreement' can be made by an Authorised Dealer.
الجواب. Yes, RBI has delegated the powers, to make payments for royalty, lumpsum fee for transfer of technology and.
payment for use of trademark/brand name in terms of the foreign technology collaboration agreement entered by the.
Indian company with its foreign partners, to the AD banks subject to compliance with the provisions of Foreign.
Exchange Management (Current Account Transactions) Rules, 2000. Further, the requirement of registration of the.
agreement with the Regional Office of Reserve Bank of India has also been done away with.
III. Foreign Portfolio Investment.
Q.1. What are the regulations regarding Portfolio Investments by SEBI registered Foreign Institutional Investors.
FEMA Notification No.20 dated May 3, 2000, as amended from time to time. FIIs include Asset.
Management Companies, Pension Funds, Mutual Funds, Investment Trusts as Nominee Companies,
Incorporated / Institutional Portfolio Managers or their Power of Attorney holders, University Funds,
SEBI acts as the nodal point in the registration of FIIs. The Reserve Bank of India has granted general.
permission to SEBI Registered FIIs to invest in India under the Portfolio Investment Scheme (PIS).
Investment by SEBI registered FIIs and its sub accounts cannot exceed 10per cent of the paid up capital of.
the Indian company. However, in case of foreign corporates or High Networth Individuals (HNIs) registered.
as sub accounts of an FII, their investment shall be restricted to 5 per cent of the paid up capital of the Indian.
شركة. All FIIs and their sub-accounts taken together cannot acquire more than 24 per cent of the paid up.
capital of an Indian Company. An Indian company can raise the 24 per cent ceiling to the sectoral cap /
statutory ceiling, as applicable, by passing a resolution by its Board of Directors followed by passing a.
Special Resolution to that effect by their General Body. The Indian company has to intimate the raising of.
the FII limit to the Reserve Bank to enable the Bank to notify the same on its website for larger public.
SEBI registered FIIs/sub-accounts of FIIs can invest in primary issues of Non-Convertible Debentures.
(NCDs)/ bonds only if listing of such bonds / NCDs is committed to be done within 15 days of such.
investment. In case the NCDs/bonds issued to the SEBI registered FIIs / sub-accounts of FIIs are not listed.
within 15 days of issuance to the SEBI registered FIIs / sub-accounts of FIIs, for any reason, then the.
FII/sub-account of FII shall immediately dispose of these bonds/NCDs either by way of sale to a third party.
or to the issuer and the terms of offer to FIIs / sub-accounts should contain a clause that the issuer of such.
debt securities shall immediately redeem / buyback the said securities from the FIIs/sub-accounts of FIIs in.
such an eventuality.
Q.2. What are the regulations regarding Portfolio Investments by NRIs/PIOs?
mandatorily convertible debentures of Indian companies on the Stock Exchanges under the Portfolio.
Investment Scheme. For this purpose, the NRI/ PIO has to apply to a designated branch of a bank, which.
deals in Portfolio Investment. All sale/ purchase transactions are to be routed through the designated branch.
An NRI or a PIO can purchase shares up to 5 per cent of the paid up capital of an Indian company. الكل.
NRIs/PIOs taken together cannot purchase more than 10 per cent of the paid up value of the company. هذه.
limit can be increased by the Indian company to 24 per cent by passing a General Body resolution. ال.
Indian company has to intimate the raising of the NR Limit to the Reserve Bank to enable the Bank to notify.
the same on its website for larger public dissemination.
The sale proceeds of the repatriable investments can be credited to the NRE/ NRO, etc. accounts of the NRI/
PIO, whereas the sale proceeds of non-repatriable investment can be credited only to NRO accounts.
The sale of shares will be subject to payment of applicable taxes.
Q.1. Can a Non-resident Indian (NRI) and SEBI registered Foreign Institutional Investor (FII)invest in Government.
Securities/ Treasury bills and Corporate debt?
الجواب. Under the FEMA Regulations, only NRIs andSEBI registered FIIs are permitted to purchase Government.
Securities/Treasury bills and Corporate debt. The details are as under :
A. A Non-resident Indian can purchase without limit,
(1) on repatriation basis.
i) Dated Government securities (other than bearer securities) or treasury bills or units of domestic mutual funds;
ii) Bonds issued by a public sector undertaking (PSU) in India; و.
iii) Shares in Public Sector Enterprises being disinvested by the Government of India.
(2) on non-repatriation basis.
i) Dated Government securities (other than bearer securities) or treasury bills or units of domestic mutual funds;
ii) Units of Money Market Mutual Funds in India; و.
iii) National Plan/Savings Certificates.
B. A SEBI registered FII may purchase, on repatriation basis, dated Government securities/ treasury bills, listed nonconvertible debentures/ bonds issued by an Indian company and units of domestic mutual funds either directly from.
the issuer of such securities or through a registered stock broker on a recognised stock exchange in India.
Purchase of debt instruments including Upper Tier II instruments issued by banks in India and denominated in.
Indian Rupees by FIIs are subject to limits notified by SEBI and the Reserve Bank from time to time. The present.
limit for investment in Corporate Debt Instruments like non-convertible debentures / bonds by FIIs is USD 45.
billion , which constitutes of the:
Out of USD 45 billion, USD 25 billion is earmarked for investment in infrastructure corporate bonds and the.
remaining USD 20 billion is earmarked for investment in non-infrastructure corporate bonds. Out of the USD 25.
billion earmarked for FIIs investment in infrastructure corporate bonds, a uniform lock-in period of one year and.
residual maturity of fifteen months has been prescribed for USD 22 billion investment by FIIs excluding the USD 3.
billion limit earmarked for QFIs investment in mutual fund debt oriented schemes. The present limit of investment.
by SEBI registered FIIs in Government Securities is USD 20 billion which constitutes of :
USD 10 billion will be without any conditions and the remaining USD 10 billion is with the condition that.
the residual maturity of the instrument at the time of first purchase by FIIs should be at least three years.
foreign Central Banks to be registered with SEBI are also allowed to invest in Government securities within this.
enhanced limit of USD 20 billion.
Q.2. Can a NRI and SEBI registered FII invest in Tier I and Tier II instruments issued by banks in India?
الجواب. SEBI registered FIIs and NRIs have been permitted to subscribe to the Perpetual Debt instruments (eligible for.
inclusion as Tier I capital) and Debt Capital instruments (eligible for inclusion as upper Tier II capital), issued by.
banks in India and denominated in Indian Rupees, subject to the following conditions:
Investment by all FIIs in Rupee denominated Perpetual Debt instruments (Tier I) should not exceed an.
aggregate ceiling of 49 per cent of each issue and investment by individual FII should not exceed the limit of.
10 per cent of each issue.
Investments by all NRIs in Rupee denominated Perpetual Debt instruments (Tier I) should not exceed an.
aggregate ceiling of 24 per cent of each issue and investments by a single NRI should not exceed 5 percent.
Investment by FIIs in Rupee denominated Debt Capital instruments (Tier II) shall be within the limits.
stipulated by SEBI for FII investment in corporate debt instruments.
Investment by NRIs in Rupee denominated Debt Capital instruments (Tier II) shall be in accordance with the.
extant policy for investment by NRIs in other debt instruments.
Investment by FIIs in Rupee denominated Upper Tier II Instruments raised in Indian Rupees will be within.
the limit prescribed by the SEBI for investment in corporate debt instruments.
The details of the secondary market sales / purchases by FIIs and the NRIs in these instruments on the floor.
of the stock exchange are to be reported by the custodians and designated Authorised Dealer banks.
respectively, to the Reserve Bank through the soft copy of the Forms LEC (FII) and LEC (NRI).
Q.3. Can a NRI and SEBI registered FIIinvest in Indian Depository Receipts (IDRs)?
الجواب. NRI and SEBI registered FIIs have been permitted to invest, purchase, hold and transfer IDRs of eligible.
companies resident outside India and issued in the Indian capital market, subject to the following conditions:
(i) The purchase, hold and transfer of IDRs is in accordance with the Foreign Exchange Management (Transfer or.
Issue of Security by a Person Resident Outside India) Regulations, 2000 notified vide Notification No. FEMA 20 /
2000-RB dated May 3, 2000, as amended from time to time.
A limited two way fungibility for IDRs (similar to the limited two way fungibility facility available for.
ADRs/GDRs) subject to the following terms and conditions:
The conversion of IDRs into underlying equity shares would be governed by the conditions mentioned in.
Fresh IDRs would continue to be issued in terms of the provisions of A. P. (DIR Series) Circular No. 5 dated.
The re-issuance of IDRs would be allowed only to the extent of IDRs that have been redeemed /converted.
into underlying shares and sold.
There would be an overall cap of USD 5 billion for raising of capital by issuance of IDRs by eligible foreign.
companies in Indian markets. This cap would be akin to the caps imposed for FII investment in debt.
securities and would be monitored by SEBI.
IDRs shall not be redeemable into underlying equity shares before the expiry of one year period from the.
date of issue of the IDRs.
At the time of redemption / conversion of IDRs into the underlying shares, the Indian holders (persons.
resident in India) of IDRs shall comply with the provisions of the Foreign Exchange Management (Transfer.
or Issue of Any Foreign Security) Regulations, 2004 notified vide Notification No. FEMA 120 / RB-2004.
dated July 7 2004, as amended from time to time.
The FEMA provisions shall not apply to the holding of the underlying shares, on redemption of IDRs by the FIIs.
including SEBI approved sub-accounts of the FIIs and NRIs. The issuance, redemption and fungibility of IDRs.
would also be subject to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended.
from time to time as well as other relevant guidelines issued in this regard by the Government, the SEBI and the.
RBI from time to time.
Q.4. Can aperson resident in India invests in the Indian Depository Receipts (IDRs)? What is the procedure for.
redemption of IDRs held by persons resident in India?
الجواب. A person resident in India may purchase, hold and transfer IDRs of eligible companies resident outside India.
and issued in the Indian capital market. The FEMA Regulations shall not be applicable to persons resident in India.
as defined under section 2(v) of FEMA, 1999, for investing in IDRs and subsequent transfer arising out of a.
transaction on a recognized Stock Exchange in India. However, at the time of redemption / conversion of IDRs into.
underlying shares, the Indian holders (persons resident in India) of IDRs shall comply with the provisions of the.
Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 notified vide.
Notification No. FEMA 120 / RB-2004 dated July 7 2004, as amended from time to time. The following guidelines.
shall be followed on redemption of IDRs by persons resident in India:
أنا. Listed Indian companies may either sell or continue to hold the underlying shares subject to the terms and.
conditions as per Regulations 6B and 7 of Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended.
from time to time.
ثانيا. Indian Mutual Funds, registered with SEBI may either sell or continue to hold the underlying shares subject to the.
terms and conditions as per Regulation 6C of Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended.
ثالثا. Other persons resident in India including resident individuals are allowed to hold the underlying shares only for.
the purpose of sale within a period of 30 days from the date of conversion of the IDRs into underlying shares.
V. Foreign Venture Capital Investment.
What are the regulations for Foreign Venture Capital Investment?
to invest in a Venture Capital Fund (VCF) or an Indian Venture Capital Undertaking (IVCU), in the manner.
and subject to the terms and conditions specified in Schedule 6 of RBI Notification No. FEMA 20/2000-RB.
dated May 3, 2000, as amended from time to time. These investments by SEBI registered FVCI, would be.
subject to the SEBI regulation and sector specific caps of FDI.
FVCIs can purchase equity / equity linked instruments / debt / debt instruments, debentures of an IVCU or of.
a VCF through initial public offer or private placement in units of schemes / funds set up by a VCF. في ال.
time of granting approval, the Reserve Bank permits the FVCI to open a Foreign Currency Account and/ or a.
Rupee Account with a designated branch of an AD Category – I bank.
FVCIs allowed to invest in the eligible securities (equity, equity linked instruments, debt, debt instruments,
debentures of an IVCU or VCF, units of schemes / funds set up by a VCF) by way of private arrangement /
purchase from a third party also. FVCIs are also allowed to invest in securities on a recognized stock.
The purchase / sale of shares, debentures and units can be at a price that is mutually acceptable to the buyer.
AD Category – I banks can offer forward cover to FVCIs to the extent of total inward remittance. In case the.
FVCI has made any remittance by liquidating some investments, original cost of the investments has to be.
deducted from the eligible cover to arrive at the actual cover that can be offered.
السادس. Branch/ Project/ Liaison Office of a foreign company in India.
Q.1. How can foreign companies open Liaison /Branch office in India?
Office (LO/BO) are required to submit their application in Form FNC along with the documents mentioned therein.
to Foreign Investment Division, Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai.
B. The applications from such entities in Form FNC will be considered by the Reserve Bank under two routes:
والثور؛ Reserve Bank Route - Where principal business of the foreign entity falls under sectors where 100 per cent Foreign.
Direct Investment (FDI) is permissible under the automatic route.
والثور؛ Government Route - Where principal business of the foreign entity falls under the sectors where 100 per cent FDI.
is not permissible under the automatic route. Applications from entities falling under this category and those from.
Non - Government Organisations / Non - Profit Organisations / Government Bodies / Departments are considered by.
the Reserve Bank in consultation with the Ministry of Finance, Government of India.
C. The following additional criteria are also considered by the Reserve Bank while sanctioning Liaison/Branch.
Offices of foreign entities:
For Branch Office — a profit making track record during the immediately preceding five financial years in.
the home country.
For Liaison Office — a profit making track record during the immediately preceding three financial years in.
the home country.
والثور؛ Net Worth [total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet.
or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by.
For Branch Office — not less than USD 100,000 or its equivalent.
For Liaison Office — not less than USD 50,000 or its equivalent.
D. Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to.
time by the Authorised Dealer in whose jurisdiction the office is set up. The Branch / Liaison offices established.
with the Reserve Bank's approval will be allotted a Unique Identification Number (UIN) (
rbi. in/scripts/Fema. aspx ). The BOs / LOs shall also obtain Permanent Account Number (PAN) from the.
Income Tax Authorities on setting up the offices in India.
E. Liaison/Branch offices have to file an Annual Activity Certificate (AACs) from the Auditors, as at end of March.
31, along with the audited Balance Sheet on or before September 30 of that year, stating that the Liaison Office has.
undertaken only those activities permitted by Reserve Bank of India. In case the annual accounts of the LO/ BO are.
finalized with reference to a date other than March 31, the AAC along with the audited Balance Sheet may be.
submitted within six months from the due date of the Balance Sheet.
الجواب. A Liaison Office (also known as Representative Office) can undertake only liaison activities, i. e. it can act as a.
channel of communication between Head Office abroad and parties in India. It is not allowed to undertake any.
business activity in India and cannot earn any income in India. Expenses of such offices are to be met entirely.
through inward remittances of foreign exchange from the Head Office outside India. The role of such offices is,
therefore, limited to collecting information about possible market opportunities and providing information about the.
company and its products to the prospective Indian customers. A Liaison Office can undertake the following.
activities in India:
أنا. Representing in India the parent company / group companies.
ثانيا. Promoting export / import from / to India.
iii Promoting technical/financial collaborations between parent/group companies and companies in India.
iv. Acting as a communication channel between the parent company and Indian companies.
Q.3. Can Foreign Insurance Companies / Banks set up Liaison Office in India?
الجواب. Foreign Insurance companies can establish Liaison Offices in India only after obtaining approval from the.
Insurance Regulatory and Development Authority (IRDA). Similarly, foreign banks can establish Liaison Offices in.
India only after obtaining approval from the Department of Banking Operations and Development (DBOD), Reserve.
Q. 4. What is the procedure for setting up Branch office?
الجواب. Permission for setting up branch offices is granted by the Foreign Exchange Department, Reserve Bank of.
India, Central Office, Mumbai. Reserve Bank of India considers the track record of the applicant company, existing.
trade relations with India, the activity of the company proposing to set up office in India as well as the financial.
position of the company while scrutinising the application. The application in Form FNC should be submitted to the.
Reserve Bank through the Authorised Dealer bank.
Q.5. What are the permitted activities of Branch Office?
الجواب. Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up.
Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent.
the parent / group companies and undertake the following activities in India:
Export / Import of goods.1.
Rendering professional or consultancy services.
Carrying out research work, in areas in which the parent company is engaged.
Promoting technical or financial collaborations between Indian companies and parent or overseas group.
Rendering services in information technology and development of software in India.
Rendering technical support to the products supplied by parent/group companies.
Foreign airline / shipping company.
Normally, the Branch Office should be engaged in the activity in which the parent company is engaged.
A Branch Office is not allowed to carry out manufacturing or processing activities in India, directly or.
Profits earned by the Branch Offices are freely remittable from India, subject to payment of applicable taxes.
Q.6. Whether Branch Offices are permitted to remit profit outside India?
الجواب. Branch Offices are permitted to remit outside India profit of the branch net of applicable Indian taxes, on.
production of the following documents to the satisfaction of the Authorised Dealer through whom the remittance is.
ا. A Certified copy of the audited Balance Sheet and Profit and Loss account for the relevant year;
ب. A Chartered Accountant’s certificate certifying i. the manner of arriving at the remittable profit.
ثانيا. that the entire remittable profit has been earned by undertaking the permitted activities.
ثالثا. that the profit does not include any profit on revaluation of the assets of the branch.
Q.7 What are the documents to be submitted to the AD bank at the time of closure of the Liaison/ Branch Office?
الجواب. At the time of winding up of Branch/Liaison offices, the company has to approach the designated AD Category.
- I bank with the following documents:
a) Copy of the Reserve Bank's permission/ approval from the sectoral regulator(s) for establishing the BO / LO.
b) Auditor’s certificate - i) indicating the manner in which the remittable amount has been arrived at and supported.
by a statement of assets and liabilities of the applicant, and indicating the manner of disposal of assets;
ii) confirming that all liabilities in India including arrears of gratuity and other benefits to employees, etc., of the.
iii) confirming that no income accruing from sources outside India (including proceeds of exports) has remained unrepatriated to India.
c) No-objection / Tax Clearance Certificate from Income-Tax authority for the remittance/s.
d) Confirmation from the applicant/parent company that no legal proceedings in any Court in India are pending and.
there is no legal impediment to the remittance.
e) A report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 1956,
in case of winding up of the Office in India.
f) Any other document/s, specified by the Reserve Bank while granting approval.
Q.8. What is the procedure for setting up Project Office?
الجواب. The Reserve Bank has granted general permission to foreign companies to establish Project Offices in India,
provided they have secured a contract from an Indian company to execute a project in India, and.
the project is funded directly by inward remittance from abroad; أو.
the project is funded by a bilateral or multilateral International Financing Agency; أو.
the project has been cleared by an appropriate authority; أو.
a company or entity in India awarding the contract has been granted Term Loan by a Public Financial.
Institution or a bank in India for the project.
However, if the above criteria are not met or if the parent entity is established in Pakistan, Bangladesh, Sri Lanka,
Afghanistan, Iran or China, such applications have to be forwarded to the Foreign Exchange Department, Reserve.
Bank of India, Central Office, Mumbai for approval.
Q.9. What are the bank accounts permitted to a Project Office?
الجواب. AD Category – I banks can open non-interest bearing Foreign Currency Account for Project Offices in India.
subject to the following:
The Project Office has been established in India, with the general / specific permission of Reserve Bank,
having the requisite approval from the concerned Project Sanctioning Authority concerned.
The contract, under which the project has been sanctioned, specifically provides for payment in foreign.
Each Project Office can open two Foreign Currency Accounts, usually one denominated in USD and other in.
The permissible debits to the account shall be payment of project related expenditure and credits shall be.
foreign currency receipts from the Project Sanctioning Authority, and remittances from parent/ group.
company abroad or bilateral / multilateral international financing agency.
The responsibility of ensuring that only the approved debits and credits are allowed in the Foreign Currency.
Account shall rest solely with the branch concerned of the AD. Further, the Accounts shall be subject to 100.
per cent scrutiny by the Concurrent Auditor of the respective AD banks.
The Foreign Currency accounts have to be closed at the completion of the Project.
Q.10. What are the general conditions applicable to Liaison / Branch / Project Office of foreign entities in India?
الجواب. The general conditions applicable to Liaison/Branch/Project Office of foreign entities in India are as under;
(i) Without prior permission of the Reserve Bank, no person being a citizen of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, Iran or China can establish in India, a Branch or a Liaison Office or a Project Office or any other place.
(ii) Partnership / Proprietary concerns set up abroad are not allowed to establish Branch /Liaison/Project Offices in.
(iii) Entities from Nepal are allowed to establish only Liaison Offices in India.
(iv) Branch/Project Offices of a foreign entity, excluding a Liaison Office are permitted to acquire property for their.
own use and to carry out permitted/incidental activities but not for leasing or renting out the property. ومع ذلك،
entities from Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, Bhutan or China are not allowed to acquire.
immovable property in India even for a Branch Office. These entities are allowed to lease such property for a period.
not exceeding five years.
(v) Branch / Liaison / Project Offices are allowed to open non-interest bearing INR current accounts in India.
(vi) Transfer of assets of Liaison / Branch Office to subsidiaries or other LO / BO or any other entity is permitted.
only with the specific approval of the Central Office of the Foreign Exchange Department, Reserve Bank of India.
(viii) Authorised Dealers can allow term deposit account for a period not exceeding 6 months in favor of a.
branch/office of a person resident outside India provided the bank is satisfied that the term deposit is out of.
temporary surplus funds and the branch / office furnishes an undertaking that the maturity proceeds of the term.
deposit will be utilised for their business in India within 3 months of maturity. However, such facility may not be.
extended to shipping/airline companies.
(ix) Permission to establish offices, in India by foreign Non-Government Organisations/Non-Profit.
Organisations/Foreign Government Bodies/Departments, by whatever name called, are under the Government Route.
as specified in A. P. (DIR Series) Circular No. 23 dated December 30, 2009. Such entities are required to apply to.
VII. Investment by QFIs.
Q 1. What are QFIs and what are the investments they can undertake?
(a) Resident in a country that is a member of Financial Action task Force (FATF) or a member of a group which is a.
member of FATF; و.
(b) Resident in a country that is a signatory to IOSCO’s MMoU (Appendix A Signatories) or a signatory of a.
bilateral MoU with SEBI.
PROVIDED that the person is not resident in a country listed in the public statements issued by FATF from time to.
time on jurisdictions having a strategic AML/CFT deficiencies to which counter measures apply or that have not.
made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the.
FATF to address the deficiencies;
Further such person is not resident in India and is not registered with SEBI as a Foreign Institutional Investor (FII)
or Sub-Account of an FII or Foreign Venture Capital Investor (FVCI).
“bilateral MoU with SEBI” shall mean a bilateral MoU between SEBI and the overseas regulator that, inter.
alia, provides for information sharing arrangements.
Member of FATF shall not mean an associate member of FATF.
Q2. What are the investments QFIs can undertake and what are the applicable caps for such investment?
The QFIs may invest in rupee denominated units of equity schemes of domestic MFs directly issued by the SEBI.
registered domestic MFs under the two routes, namely the Direct Route – SEBI registered Depository Participant.
(DP) route and the Indirect Route - Unit Confirmation Receipt (UCR) route (no secondary market purchases are.
Investments by the QFIs will have a ceiling of USD 10 billion under both the routes. Units and UCRs issued under.
this scheme to QFIs, are non-tradable and non-transferable.
QFIs are also allowed to invest (under both the routes – Direct and Indirect), up to an additional amount of USD 3.
billion in units of domestic MF debt schemes which invest in infrastructure (“Infrastructure” as defined under the.
extant ECB guidelines) debt of minimum residual maturity of 5 years, within the existing ceiling of USD 25 billion.
for FII investment in corporate bonds issued by infrastructure companies.
QFIs are also permitted to invest through SEBI registered Depository Participants in equity shares of listed Indian.
companies through recognized brokers on recognized stock exchanges in India as well as in equity shares of Indian.
companies which are offered to public in India in terms of the relevant SEBI guidelines/regulations.
The individual and aggregate investment limits for the QFIs are 5% and 10% respectively of the paid up capital of.
an Indian company. These limits are over and above the FII and NRI investment ceilings prescribed under the.
Portfolio Investment Scheme for foreign investment in India. Further, wherever there are composite sectoral caps.
under the extant FDI policy, these limits for QFI investment in equity shares shall also be within such overall FDI.
QFIs are also permitted to acquire equity shares by way of rights shares, bonus shares or equity shares on account of.
stock split / consolidation or equity shares on account of amalgamation, demerger or such corporate actions subject.
to the investment limits prescribed below. QFIs are also allowed to sell the equity shares so acquired by way of sale.
Qualified Foreign Investors (QFIs) have been permitted to purchase, on repatriation basis, debt securities through.
SEBI registered Qualified Depository Participants (QDPs) in eligible corporate debt instruments, viz. listed NonConvertible Debentures(NCDs), listed bonds of Indian companies, listed units of Mutual Fund debt Schemes and “to.
be listed” corporate bonds directly from the issuer or through a registered stock broker on a recognized stock.
exchange in India. The provisions relating to FIIs in case of non-listing of “to be listed” corporate bonds, within 15.
days as per A. P. (DIR Series) Circular No. 89 dated March 1, 2018, are applicable to QFIs.
QFIs are permitted to invest in corporate debt securities (without any lock-in or residual maturity clause) and Mutual.
Fund debt schemes subject to a total overall ceiling of USD 1 billion. This limit shall be over and above USD 20.
billion for FII investment in corporate debt.
QFIs are also be permitted to sell ‘eligible debt securities’ so acquired by way of sale through registered stock.
broker on a recognized stock exchange in India or by way of buyback or redemption by the issuer.
Mode of payment / repatriation.
A QFI may open a single non-interest bearing Rupee Account with an AD Category - I bank in India, for routing the.
receipt and payment for transactions relating to purchase and sale of units of domestic mutual funds, equity shares of.
listed Indian companies and eligible debt securities.
eligible debt securities under the QFI scheme.
Permissible currencies - QFIs will remit foreign inward remittance through normal banking channel in any permitted.
currency (freely convertible) directly into the single non-interest bearing Rupee account of the QFI maintained with.
an AD Category-I bank.
Pricing – The pricing of all eligible transactions and investment in all eligible securities by QFIs under this scheme.
shall be in accordance with the relevant and applicable guidelines issued from time to time.
Hedging – QFIs would be permitted to hedge their currency risk on account of their permissible investments (in.
equity and debt instruments) in terms of the guidelines issued by the Reserve Bank from time to time, similar to the.
facilities made available to the FIIs in the matter.
Reporting – In addition to the reporting to SEBI as may be prescribed by them, QDPs and AD Category-I banks.
(maintaining QFI accounts) are required to ensure reporting to the Reserve Bank of India in a manner and format as.
prescribed by the Reserve Bank of India from time to time.
Foreign Investments in Infrastructure Debt Funds.
Investment on repatriation basis by eligible non-resident investors viz. Sovereign Wealth Funds, Multilateral.
Agencies, Pension Funds, Insurance Funds and Endowment Funds which are registered with SEBI as eligible nonresident investors in IDFs is allowed in Rupee and Foreign currency denominated bonds issued by the Infrastructure.
Debt Funds (IDFs) set up as an Indian company and registered as Non-Banking Financial Companies (NBFCs) with.
the Reserve Bank of India and in (ii) Rupee denominated units issued by IDFs set up as SEBI registered domestic.
Mutual Funds(MFs), in accordance with the terms and conditions stipulated by the SEBI and the Reserve Bank of.
India from time to time.
The original / initial maturity of all aforementioned securities at the time of first investment by a non resident.
investor is five years and subject to a lock in period of 3 years.
All non-resident investment in IDFs (other than NRIs) (in both Rupee and Foreign Currency denominated securities)
are within an overall cap / limit of USD 10 billion. This cap / limit of USD 10 billion would be within the overall.
cap of USD 25 billion for FII investment in bonds / non convertible debentures issued by Indian companies in the.
infrastructure sector (where infrastructure is as defined under the extant ECB guidelines) or by Infrastructure.
Finance Companies (IFCs registered as NBFCs with the Reserve Bank).
The facility of foreign exchange hedging would be available to the eligible non-resident IDF investors, IDFs as well.
as the infrastructure project companies exposed to the foreign exchange/ currency risk.
Q: What are the reporting requirements for acquisition/transfer of shares by non-residents under respective.
schedules to FEMA 20:
Ans: Following are the reporting requirements.
(i) Reporting of inflow.
(a) The actual inflows on account of such issuance of shares shall be reported by the AD branch in the R-returns in.
the normal course.
(b) An Indian company receiving investment from outside India for issuing shares / convertible debentures /
preference shares under the FDI Scheme, should report the details of the amount of consideration to the Regional.
Office concerned of the Reserve Bank through it’s AD Category I bank, not later than 30 days from the date of.
receipt in the Advance Reporting Form enclosed in Annex - 6. Noncompliance with the above provision would be.
reckoned as a contravention under.
FEMA, 1999 and could attract penal provisions.
The Form can also be downloaded from the Reserve Bank's website.
(c) Indian companies are required to report the details of the receipt of the amount of consideration for issue of.
shares / convertible debentures, through an AD Category - I bank, together with a copy/ies of the FIRC/s evidencing.
the receipt of the remittance along with the KYC report on the non-resident investor from the overseas bank.
remitting the amount. The report would be acknowledged by the Regional Office concerned, which will allot a.
Unique Identification Number (UIN) for the amount reported.
(ii) Time frame within which shares have to be issued.
The equity instruments should be issued within 180 days from the date of receipt of the inward remittance or by.
debit to the NRE/FCNR (B) /Escrow account of the non-resident investor. In case, the equity instruments are not.
issued within 180 days from the date of receipt of the inward remittance or date of debit to the NRE/FCNR (B)
account, the amount of consideration so received should be refunded immediately to the non-resident investor by.
outward remittance through normal banking channels or by credit to the NRE/FCNR (B)/Escrow account, as the.
case may be. Non-compliance with the above provision would be reckoned as a contravention under FEMA and.
could attract penal provisions. In exceptional cases, refund / allotment of shares for the amount of consideration.
outstanding beyond a period of 180 days from the date of receipt may be considered by the Reserve Bank, on the.
merits of the case.
(iii) Reporting of issue of shares.
(a) After issue of shares (including bonus and shares issued on rights basis and shares issued on conversion of stock.
option under ESOP scheme)/ convertible debentures / convertible preference shares, the Indian company has to file.
Form FC-GPR, through it’s AD Category I bank, not later than 30 days from the date of issue of shares. The Form.
can also be downloaded from the Reserve Bank's website rbi. in/Scripts/BS_ViewFemaForms. aspx.
Non-compliance with the above provision would be reckoned as a contravention under FEMA and could attract.
(b) Form FC-GPR has to be duly filled up and signed by Managing Director/Director/Secretary of the Company and.
submitted to the Authorised Dealer of the company, who will forward it to the concerned Regional Office of the.
Reserve Bank. The following documents have to be submitted along with Form FC-GPR:
(i) A certificate from the Company Secretary of the company certifying that :
a) all the requirements of the Companies Act, 1956 have been complied with;
b) terms and conditions of the Government’s approval, if any, have been complied with;
c) the company is eligible to issue shares under these Regulations; و.
d) the company has all original certificates issued by AD banks in India evidencing receipt of amount of.
(ii) A certificate from SEBI registered Merchant Banker or Chartered Accountant indicating the manner of arriving.
at the price of the shares issued to the persons resident outside India.
(c) The report of receipt of consideration as well as Form FC-GPR have to be submitted by the AD bank to the.
Regional Office concerned of the Reserve Bank under whose jurisdiction the registered office of the company is.
(d) Issue of bonus/rights shares or shares on conversion of stock options issued under ESOP to persons resident.
outside India directly or on amalgamation / merger with an existing Indian company, as well as issue of shares on.
conversion of ECB / royalty / lumpsum technical know-how fee / import of capital goods by units in SEZs has to be.
reported in Form FC-GPR.
B. Reporting of FDI for Transfer of shares route.
(i) The actual inflows and outflows on account of such transfer of shares shall be reported by the AD branch in the.
R-returns in the normal course.
(ii) Reporting of transfer of shares between residents and non-residents and vice - versa is to be made in Form FCTRS. The Form FC-TRS should be submitted to the AD Category – I bank, within 60 days from the date of receipt.
of the amount of consideration. The onus of submission of the Form FC-TRS within the given timeframe would be.
on the transferor / transferee, resident in India.
(iii) The sale consideration in respect of equity instruments purchased by a person resident outside India, remitted.
into India through normal banking channels, shall be subjected to a KYC check (Annex 9-ii) by the remittance.
receiving AD Category – I bank at the time of receipt of funds. In case, the remittance receiving AD Category – أنا.
bank is different from the AD Category - I bank handling the transfer transaction, the KYC check should be carried.
out by the remittance receiving bank and the KYC report be submitted by the customer to the AD Category – I bank.
carrying out the transaction along with the Form FC-TRS.
(iv) The AD bank should scrutinise the transactions and on being satisfied about the transactions should certify the.
(v) The AD bank branch should submit two copies of the Form FC-TRS received from their constituents/customers.
together with the statement of inflows/outflows on account of remittances received/made in connection with transfer.
of shares, by way of sale, to IBD/FED/or the nodal office designated for the purpose by the bank in the proforma.
(which is to be prepared in MS-Excel format). The IBD/FED or the nodal office of the bank will consolidate.
reporting in respect of all the transactions reported by their branches into two statements inflow and outflow.
statement. These statements (inflow and outflow) should be forwarded on a monthly basis to Foreign Exchange.
Department, Reserve Bank, Foreign Investment Division, Central Office, Mumbai in soft copy (in MS - Excel) by email. The bank should maintain the FC-TRS forms with it and should not forward the same to the Reserve Bank of.
(vi) The transferee/his duly appointed agent should approach the investee company to record the transfer in their.
books along with the certificate in the Form FC-TRS from the AD branch that the remittances have been received by.
the transferor/payment has been made by the transferee. On receipt of the certificate from the AD, the company may.
record the transfer in its books.
(vii) On receipt of statements from the AD bank , the Reserve Bank may call for such additional details or give such.
directions as required from the transferor/transferee or their agents, if need be.
C. Reporting of conversion of ECB into equity.
Details of issue of shares against conversion of ECB have to be reported to the Regional Office concerned of the.
Reserve Bank, as indicated below:
In case of full conversion of ECB into equity, the company shall report the conversion in Form FC-GPR to.
the Regional Office concerned of the Reserve Bank as well as in Form ECB-2 to the Department of Statistics.
and Information Management (DSIM), Reserve Bank of India, Bandra-Kurla Complex, Mumbai – 400 051,
within seven working days from the close of month to which it relates. The words "ECB wholly converted to.
equity" shall be clearly indicated on top of the Form ECB-2. Once reported, filing of Form ECB-2 in the.
subsequent months is not necessary.
In case of partial conversion of ECB, the company shall report the converted portion in Form FC-GPR to the.
Regional Office concerned as well as in Form ECB-2 clearly differentiating the converted portion from the.
non-converted portion. The words "ECB partially converted to equity" shall be indicated on top of the Form.
ECB-2. In the subsequent months, the outstanding balance of ECB shall be reported in Form ECB-2 to.
The SEZ unit issuing equity as mentioned in para (iii) above, should report the particulars of the shares.
issued in the Form FC-GPR.
D. Reporting of ESOPs for allotment of equity shares.
The issuing company is required to report the details of issuance of ESOPs to its employees to the Regional Office.
concerned of the Reserve Bank, in plain paper reporting, within 30 days from the date of issue of ESOPs. Further, at.
concerned of the Reserve Bank in form FC-GPR, within 30 days of allotment of such shares. However, provision.
with regard to advance reporting would not be applicable for such issuances.
E. Reporting of ADR/GDR Issues.
The Indian company issuing ADRs / GDRs has to furnish to the Reserve Bank, full details of such issue in the Form.
enclosed in Annex -10, within 30 days from the date of closing of the issue. The company should also furnish a.
quarterly return in the prescribed Form, to the Reserve Bank within 15 days of the close of the calendar quarter. ال.
quarterly return has to be submitted till the entire amount raised through ADR/GDR mechanism is either repatriated.
to India or utilized abroad as per the extant Reserve Bank guidelines.
F. Reporting of FII investments under PIS scheme.
(i) FII reporting: The AD Category – I banks have to ensure that the FIIs registered with SEBI who are purchasing.
various securities (except derivative and IDRs) by debit to the Special Non-Resident Rupee Account should report.
all such transactions details (except derivative and IDRs) in the Form LEC (FII) to Foreign Exchange Department,
Reserve Bank of India, Central Office by uploading the same to the ORFS web site.
secweb. rbi. in/ORFSMainWeb/Login. jsp). It would be the banks responsibility to ensure that the data.
submitted to RBI is reconciled by periodically taking a FII holding report for their bank.
(iii) The Indian company which has issued shares to FIIs under the FDI Scheme (for which the payment has been.
received directly into company’s account) and the Portfolio Investment Scheme (for which the payment has been.
received from FIIs' account maintained with an AD Category – I bank in India) should report these figures.
separately under item no. 5 of Form FC-GPR (Annex - 8) (Post-issue pattern of shareholding) so that the details.
could be suitably reconciled for statistical / monitoring purposes.
G. Reporting of NRI investments under PIS scheme.
The link office of the designated branch of an AD Category – I bank shall furnish to the Reserve Bank18, a report on.
a daily basis on PIS transactions undertaken by it, on behalf of NRIs. This report can be furnished on a floppy to the.
Reserve Bank and also uploaded directly on the OFRS web site.
secweb. rbi. in/ORFSMainWeb/Login. jsp). It would be the banks responsibility to ensure that the data.
submitted to RBI is reconciled by periodically taking a NRI holding report for their bank.
H. Reporting of foreign investment by way of issue / transfer of ‘participating interest/right’ in oil fields.
Foreign investment by way of issue / transfer of ‘participating interest/right’ in oil fields by Indian companies to a.
non resident would be treated as an FDI transaction under the extant FDI policy and the FEMA regulations.
Accordingly, transfer of ‘participating interest/ rights’ will be reported as ‘other’ category under Para 7 of revised.
Form FC-TRS and issuance of ‘participating interest/ rights’ will be reported as ‘other’ category of instruments.
under Para 4 of Form FCGPR.
Forex Facilities for Residents (Individuals)
(تحديث حتى 20 يناير 2018)
1. The legal framework for administration of foreign exchange transactions in India is provided by the Foreign.
Exchange Management Act, 1999. Under the Foreign Exchange Management Act, 1999 (FEMA), which came into.
force with effect from June 1, 2000, all transactions involving foreign exchange have been classified either as capital.
or current account transactions. All transactions undertaken by a resident that do not alter his / her assets or.
liabilities, including contingent liabilities, outside India are current account transactions. In terms of Section 5 of the.
FEMA, persons resident in India1 are free to buy or sell foreign exchange for any current account transaction except.
for those transactions for which drawal of foreign exchange has been prohibited by Central Government, such as.
remittance out of lottery winnings, remittance of income from racing/riding, etc., or any other hobby, remittance for.
purchase of lottery tickets, banned / proscribed magazines, football pools, sweepstakes, etc., payment of commission.
on exports made towards equity investment in Joint Ventures/ Wholly Owned Subsidiaries abroad of Indian.
companies, remittance of dividend by any company to which the requirement of dividend balancing is applicable,
payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value.
of exports of tea and tobacco and payment related to “call back services” of telephones. سعر صرف العملات.
Management (Current Account Transactions) Rules, 2000 - Notification [GSR No.381(E)] dated May 3, 2000, as.
amended from time to time, is available in the Official Gazette as well as, as an Annex to our Master Circular on.
Miscellaneous Remittances from India–Facilities for Residents available at our website.
I. Guidelines on Travel Related Matters.
Q.1. Who are authorized by the Reserve Bank to sell foreign exchange for travel purposes?
. Foreign exchange can be purchased from any authorised person, such as Authorised Dealer (AD) Category-I.
bank and AD Category II. Full-Fledged Money Changers (FFMCs) are also permitted to release exchange for.
business and private visits.
Q.2. Who is an Authorized Dealer?
An Authorised Dealer is any person specifically authorized by the Reserve Bank under Section 10(1) of FEMA,
1999, to deal in foreign exchange or foreign securities (the list of ADs is available on rbi. in) and normally.
Q.3. How much foreign exchange can one buy when traveling abroad on private visits to a country outside.
. For private visits abroad, other than to Nepal and Bhutan, viz., for tourism purposes, etc., any resident can.
year, on self-declaration basis, irrespective of the number of visits undertaken during the year. This limit of USD.
10,000 or its equivalent per financial year for private visits can also be availed of by a person who is availing of.
foreign exchange for travel abroad for any purposes, such as, for employment or immigration or studies.
No foreign exchange is available for visit to Nepal and/or Bhutan for any purpose.
A resident Indian is allowed to take INR of denomination of Rs.100 or lesser denomination to Nepal and Bhutan.
Q. 4. How much foreign exchange is available for a business trip?
For business trips abroad to countries, other than to Nepal and Bhutan, a person can avail of foreign exchange.
up to USD 25,000 per visit. Visits in connection with attending of an international conference, seminar, specialised.
training, study tour, apprentice training, etc., are treated as business visits. Release of foreign exchange exceeding.
USD 25,000 for business travel abroad (other than to Nepal and Bhutan), irrespective of the period of stay, requires.
prior permission from the Reserve Bank.
No release of foreign exchange is admissible for any kind of travel to Nepal and Bhutan or for any transaction.
with persons resident in Nepal.
Investments in Bhutan are permitted in Indian Rupees as well as in freely convertible currencies. If investment is.
made in freely convertible currency/ies, sale/winding up proceeds are required to be repatriated to India in freely.
Q. 5. How much foreign currency can be taken while buying foreign exchange for travel abroad?
Travellers going to all countries other than (a) and (b) below are allowed to purchase foreign currency notes /
coins only up to USD 3000. Balance amount can be carried in the form of travellers cheque or banker’s draft.
Exceptions to this are (a) travellers proceeding to Iraq and Libya who can draw foreign exchange in the form of.
foreign currency notes and coins not exceeding USD 5000 or its equivalent; (b) travellers proceeding to the Islamic.
Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States who can draw.
entire foreign exchange in the form of foreign currency notes or coins.
Q.6. How much foreign exchange can be drawn for medical treatment abroad?
AD Category I banks and AD Category II, may release foreign exchange up to USD 100,000 or its equivalent.
to resident Indians for medical treatment abroad on self declaration basis, without insisting on any estimate from a.
hospital/doctor in India/abroad. A person visiting abroad for medical treatment can obtain foreign exchange.
exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad.
An amount up to USD 25,000 is allowed for maintenance expenses of a patient going abroad for medical treatment.
or check-up abroad, or to a person for accompanying as attendant to a patient going abroad for medical.
Q.7. What are the facilities available to students for pursuing their studies abroad?
For studies abroad the estimate received from the institution abroad or USD 100,000, per academic year,
whichever is higher, may be availed of from an AD Category I bank and AD Category II. Students going abroad for.
studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under.
FEMA, 1999. Educational and other loans availed of by students as residents in India can be allowed to continue. ا.
student holding NRO account may withdraw and repatriate up to USD 1 million per financial year from his NRO.
الحساب. The student may avail of an amount of USD 10,000 or its equivalent for incidental expenses out of which.
USD 3000 or its equivalent may be carried in the form of foreign currency while going for study abroad.
Q. 8. What are the documents required for withdrawal of Foreign Exchange for the above purpose?
Documentation may be done as advised by the Authorised Dealer.
Q. 9. How much foreign exchange is available to a person going abroad on employment?
. A person going abroad for employment can draw foreign exchange up to USD 100,000 from any Authorised.
Dealer in India on the basis of self-declaration.
Q. 10. How much foreign exchange is available to a person going abroad on emigration?
A person going abroad on emigration can draw foreign exchange from AD Category I bank and AD Category II.
up to the amount prescribed by the country of emigration or USD 100,000. He can draw foreign exchange up to.
USD 100,000 on self - declaration basis from an Authorised Dealer in India This amount is only to meet the.
incidental expenses in the country of emigration. No amount of foreign exchange can be remitted outside India to.
become eligible or for earning points or credits for immigration. All such remittances require prior permission of the.
Reserve Bank. If requirement exceeds USD 100,000, the person requires to obtain the prior approval from the.
Q.11. Is there any category of visit which requires prior approval from the Reserve Bank or the Government.
. Dance troupes, artistes, etc., who wish to undertake cultural tours abroad, should obtain prior approval from the.
Ministry of Human Resources Development (Department of Education and Culture), Government of India, New.
Q.12. Whether permission is required for receiving grant/donation from abroad under the Foreign.
Contribution Regulation Act, 1976?
. The Foreign Contribution Regulation Act, 1976 is administered and monitored by the Ministry of Home Affairs.
whose address is given below:
26, Mansingh Road,
New Delhi-110 011.
No specific approval from the Reserve Bank is required in this regard.
Q.13. How many days in advance one can buy foreign exchange for travel abroad?
. Permissible foreign exchange can be drawn 60 days in advance. In case it is not possible to use the foreign.
exchange within the period of 60 days, it should be immediately surrendered to an authorised person. ومع ذلك،
residents are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for.
future use or credit to their Resident Foreign Currency (Domestic) [RFC (Domestic)] Accounts.
Q.14. Can one pay by cash full rupee equivalent of foreign exchange being purchased for travel abroad?
Foreign exchange for travel abroad can be purchased from an authorized person against rupee payment in cash.
only up to Rs.50,000/-. However, if the Rupee equivalent exceeds Rs.50,000/-, the entire payment should be made.
by way of a crossed cheque/ banker’s cheque/ pay order/ demand draft/ debit card / credit card / prepaid card only.
Q.15. Is there any time-frame for a traveller who has returned to India to surrender foreign exchange?
. On return from a foreign trip, travellers are required to surrender unspent foreign exchange held in the form of.
currency notes and travellers cheques within 180 days of return. However, they are free to retain foreign exchange.
up to USD 2,000, in the form of foreign currency notes or TCs for future use or credit to their Resident Foreign.
Currency (Domestic) [RFC (Domestic)] Accounts.
Q.16. Should foreign coins be surrendered to an Authorised Dealer on return from abroad?
The residents can hold foreign coins without any limit.
Q.17. How much foreign exchange can a resident individual send as gift / donation to a person resident.
. Any resident individual, if he so desires, may remit the entire limit of USD 200,000 in one financial year under.
LRS as gift to a person residing outside India or as donation to a charitable/educational/ religious/cultural.
organization outside India. Remittances exceeding the limit of USD 200,000 will require prior permission from the.
Q.18. Is it permitted to use International Credit Card (ICC)/ATM/Debit card for undertaking foreign.
. Use of International Credit Cards (ICCs) / ATMs/ Debit Cards can be made for travel abroad in connection with.
various purposes and for making personal payments like subscription to foreign journals, internet subscription, etc.
The entitlement of foreign exchange on International Credit Cards (ICCs) is limited by the credit limit fixed by the.
card issuing authority only. With ICCs one can (i) meet expenses/make purchases while abroad (ii) make payments.
currency account in India or with a bank overseas, he/she can even obtain ICCs of overseas banks and reputed.
Use of these instruments for payment in foreign exchange in Nepal and Bhutan is not permitted.
Q.19. How much Indian currency can a person carry while going abroad?
. Residents are free to take outside India (other than to Nepal and Bhutan) currency notes of Government of.
India and Reserve Bank of India notes up to an amount not exceeding Rs. 7,500/ - per person. They may take or send.
outside India (other than to Nepal and Bhutan) commemorative coins not exceeding two coins each.
Explanation : 'Commemorative Coin' includes coin issued by Government of India Mint to commemorate any.
specific occasion or event and expressed in Indian currency.
Q. 20. How much Indian currency can be brought in while coming into India?
. A resident of India, who has gone out of India on a temporary visit may bring into India at the time of his return.
from any place outside India (other than Nepal and Bhutan), currency notes of Government of India and Reserve.
Bank of India notes up to an amount not exceeding Rs.7,500.
A person can take or send out of India to Nepal or Bhutan, currency notes of Government of India and Reserve Bank.
notes, in denominations not exceeding Rs.100.
Q. 21. How much foreign exchange can be brought in while visiting India?
يمكن للشخص القادم إلى الهند من الخارج أن يجلب معه النقد الأجنبي دون أي حد. However, if.
the aggregate value of the foreign exchange in the form of currency notes, bank notes or travellers cheques brought.
in exceeds USD 10,000 or its equivalent and/or the value of foreign currency alone exceeds USD 5,000 or its.
equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF),
on arrival in India.
Q. 22. Is it required to follow complete export procedure when a gift parcel is sent outside India?
. A person resident in India is free to send (export) any gift article of value not exceeding Rs.5,00,000 provided.
export of that item is not prohibited under the extant Foreign Trade Policy and the exporter submits a declaration that.
goods of gift are not more than Rs.5,00,000 in value.
Export of goods or services up to Rs.5,00,000 may be made without furnishing the declaration in Form GR/ SDF/
PP/ SOFTEX, as the case may be.
Q.23. How much jewellery can be carried while going abroad?
Taking personal jewellery out of India is as per the Baggage Rules, governed and administered by Customs.
Department, Government of India. While no approval of the Reserve Bank is required in this case, approvals, if any,
Q.24. Can a resident extend local hospitality to a non-resident?
A person resident in India is free to make any payment in Indian Rupees towards meeting expenses, on account.
of boarding, lodging and services related thereto or travel to and from and within India, of a person resident outside.
India, who is on a visit to India.
Q. 25. Can residents purchase air tickets in India for their travel not touching India?
Residents may book their tickets in India for their visit to any third country. For instance, residents can book.
their tickets for travel from London to New York, through domestic/foreign airlines in India itself.
Q. 26. Can a resident open a foreign currency denominated account in India?
. Persons resident in India are permitted to maintain foreign currency accounts in India under the following three.
ا. Exchange Earners Foreign Currency Accounts:All categories of resident foreign exchange earners can credit up to 100 per cent of their foreign exchange earnings,
as specified in the paragraph 1 (A) of the Schedule to Notification No. FEMA 10/2000-RB dated 3rd May, 2000 and.
as amended from time to time, to their EEFC Account with an Authorised Dealer in India. Funds held in EEFC.
account can be utilised for all permissible current account transactions and also for approved capital account.
transactions as specified by the extant Rules/Regulations/ Notifications/ Directives issued by the Government/RBI.
from time to time. The account is maintained in the form of a non-interest bearing current account.
ب. Resident Foreign Currency Accounts : A person resident in India may open, hold and maintain with an Authorised Dealer in India a Resident Foreign.
Currency (RFC) Account to keep their foreign currency assets which were held outside India at the time of return.
can be credited to such accounts. The foreign exchange received as (i) pension of any other superannuation or other.
monetary benefits from the employer outside India; (ii) received or acquired as gift or inheritance from a person.
referred to sub-section (4) of section 6 of FEMA, 1999 or (iii) referred to in clause (c) of section 9 of the Act or.
acquired as gift or inheritance there from or (iv) received as the proceeds of life insurance policy claims/maturity/
surrender values settled in foreign currency from an insurance company in India permitted to undertake life.
insurance business by the Insurance Regulatory and Development Authority; may also be credited to this account.
RFC account can be maintained in the form of current or savings or term deposit accounts.
The funds in RFC account are free from all restrictions regarding utilisation of foreign currency balances including.
any restriction on investment outside India.
Resident Foreign Currency (Domestic) Account:-
(Domestic) Account, out of foreign exchange acquired in the form of currency notes, Bank notes and travellers.
cheques, from any of the sources like, payment for services rendered abroad, as honorarium, gift, services rendered.
or in settlement of any lawful obligation from any person not resident in India. The account may also be credited.
with/opened out of foreign exchange earned abroad like proceeds of export of goods and/or services, royalty,
honorarium, etc., and/or gifts received from close relatives (as defined in the Companies Act) and repatriated to India.
through normal banking channels. The account shall be maintained in the form of Current Account and shall not bear.
any interest. There is no ceiling on the balances in the account. The account may be debited for payments made.
towards permissible current and capital account transactions.
Q.27. Can a person resident in India hold assets outside India?
In terms of sub-section 4, of Section (6) of the Foreign Exchange Management Act, 1999, a person resident in.
India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated.
outside India if such currency, security or property was acquired, held or owned by such person when he was.
resident outside India or inherited from a person who was resident outside India. (Please also refer to the Liberalised.
Remittance Scheme of USD 200,000 discussed below).
II. Liberalised Remittance Scheme (LRS) of USD 200,000.
Q.28. What is the Liberalised Remittance Scheme of USD 200,000?
. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely.
remit up to USD 200,000 per financial year (April – March) for any permissible current or capital account.
transaction or a combination of both.
Q.29. Please provide an illustrative list of capital account transactions permitted under the scheme.
. Under the Scheme, resident individuals can acquire and hold immovable property or shares or debt.
instruments or any other assets outside India, without prior approval of the Reserve Bank. Individuals can also open,
maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under.
Q. 30. What are the prohibited items under the Scheme?
The remittance facility under the Scheme is not available for the following:
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes,
proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current.
Account Transactions) Rules, 2000;
ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty;
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market;
v) Remittance by a resident individual for setting up a company abroad;
vi) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan;
vii) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non cooperative countries and territories”, from time to time; و.
viii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of.
committing acts of terrorism as advised separately by the Reserve Bank to the banks.
Q.31. Whether LRS facility is in addition to existing facilities detailed in Schedule III under remittances?
The facility under the Scheme is in addition to those already available for private travel, business travel,
studies, medical treatment, etc., as described in Schedule III of Foreign Exchange Management (Current Account.
Transactions) Rules, 2000. The Scheme can also be used for these purposes.
However, gift and donation remittances cannot be made separately and have to be made under the Scheme only.
Accordingly, resident individuals can remit gifts and donations up to USD 200,000 per financial year under the.
Further, a resident individual can give rupee gifts to his visiting NRI/PIO close relatives [means relative as defined.
in Section 6 of the Companies Act, 1956] by way of crossed cheque/electronic transfer within the overall limit of.
USD 200,000 per financial year for the resident individual and the gifted amount should be credited to the.
beneficiary’s NRO account. An individual resident can lend money by way of crossed cheque /electronic transfer to.
a Non resident Indian (NRI)/ Person of Indian Origin (PIO) close relative [means relative as defined in Section 6 of.
the Companies Act, 1956] within the overall limit of USD 200,000 per financial year under the Liberalised.
Remittance Scheme, to meet the borrower’s personal or business requirements in India, subject to conditions. ال.
loan should be interest free and have a maturity of minimum one year and cannot be remitted outside India.
Q. 32. Are resident individuals under this Scheme required to repatriate the accrued interest/dividend on.
deposits/investments abroad, over and above the principal amount?
. The investor can retain and reinvest the income earned on investments made under the Scheme. At present, the.
residents are not required to repatriate the funds or income generated out of investments made under the Scheme.
Q.33. Are remittances under the Scheme on gross basis or net basis (net of repatriation from abroad)?
Remittance under this scheme is on a gross basis.
Q. 34. Can remittances under the facility be consolidated in respect of family members?
. Remittances under the facility can be consolidated in respect of family members subject to the individual.
Q. 35. Can one use the Scheme for purchase of objects of art (paintings, etc.) either directly or through.
. Remittances under the Scheme can be used for purchasing objects of art subject to the provisions of other.
applicable laws such as the extant Foreign Trade Policy of the Government of India.
Q.36. Is the AD required to check permissibility of remittances based on nature of transaction or allow the.
same based on remitters declaration?
. AD will be guided by the nature of transaction as declared by the remitter and will certify that the remittance is.
in conformity with the instructions issued by the Reserve Bank, in this regard from time to time.
Q.37. Can remittance be made under this Scheme for acquisition of ESOPs?
. The Scheme can also be used for remittance of funds for acquisition of ESOPs.
Q.38. Is this scheme in addition to acquisition of ESOPs linked to ADR/GDR (i. e USD 50,000/- for a block of 5.
The remittance under the Scheme is in addition to acquisition of ESOPs linked to ADR/GDR.
Q.39. Is this Scheme is in addition to acquisition of qualification shares (i. e. USD 20,000 or 1% of paid up.
capital of overseas company, whichever is lower)?
. The remittance under the Scheme is in addition to acquisition of qualification shares.
Q.40. Can a resident individual invest in units of Mutual Funds, Venture Funds, unrated debt securities,
promissory notes, etc., under this scheme?
. A resident individual can invest in units of Mutual Funds, Venture Funds, unrated debt securities, promissory.
notes, etc. under this Scheme. Further, the resident can invest in such securities out of the bank account opened.
abroad under the Scheme.
Q.41. Can an individual, who has availed of a loan abroad while as a non-resident Indian can repay the same.
on return to India, under this Scheme as a resident?
This is permissible.
Q. 42. Is it mandatory for resident individuals to have PAN number for sending outward remittances under.
It is mandatory to have PAN number to make remittances under the Scheme.
(either in his own name or in the name of the beneficiary with whom he intends putting through the.
permissible transactions) at the time of his private visit abroad, whether the remitter can effect such an.
outward remittance against self declaration?
Such outward remittance in the form of a DD can be effected against the declaration by the resident individual.
in the format prescribed under the Scheme.
Q. 44. Are there any restrictions on the frequency of the remittance?
. There is no restriction on the frequency. However, the total amount of foreign exchange purchased from or.
remitted through, all sources in India during a financial year should be within the cumulative limit of USD 200,000.
Q.45. What are the requirements to be complied with by the remitter?
The individual will have to designate a branch of an AD through which all the remittances under the Scheme.
will be made. The applicants should have maintained the bank account with the bank for a minimum period of one.
year prior to the remittance. If the applicant seeking to make the remittance is a new customer of the bank,
Authorised Dealers should carry out due diligence on the opening, operation and maintenance of the account.
Further, the AD should obtain bank statement for the previous year from the applicant to satisfy themselves.
regarding the source of funds. If such a bank statement is not available, copies of the latest Income Tax Assessment.
Order or Return filed by the applicant may be obtained. He has to furnish an application-cum-declaration in the.
specified format regarding the purpose of the remittance and declare that the funds belong to him and will not be.
used for purposes prohibited or regulated under the Scheme.
Q. 46. Can an individual, who has repatriated the amount remitted during the financial year, avail of the.
facility once again?
Once a remittance is made for an amount up to USD 200,000 during the financial year, he would not be.
eligible to make any further remittances under this scheme, even if the proceeds of the investments have been.
brought back into the country.
Q. 47. Can remittances be made only in US Dollars?
The remittances can be made in any freely convertible foreign currency equivalent to USD 200,000 in a.
Q. 48. In the past resident individuals could invest in overseas companies listed on a recognised stock.
exchange abroad and which has the shareholding of at least 10 per cent in an Indian company listed on a.
recognised stock exchange in India. Does this condition still exist?
Investment by resident individual in overseas companies is subsumed under the Scheme of USD 200,000. ال.
requirement of 10 per cent reciprocal shareholding in the listed Indian companies by such overseas companies has.
since been dispensed with.
Q. 49. Are intermediaries expected to seek specific approval for making overseas investments available to.
. Banks including those not having operational presence in India are required to obtain prior approval from.
Reserve Bank for soliciting deposits for their foreign/overseas branches or for acting as agents for overseas mutual.
funds or any other foreign financial services company.
Q.50. Are there any restrictions on the kind/quality of debt or equity instruments an individual can invest in?
. No ratings or guidelines have been prescribed under the Liberalised Remittance Scheme of USD 200,000 on.
the quality of the investment an individual can make. However, the individual investor is expected to exercise due.
diligence while taking a decision regarding the investments which he or she proposes to make.
Q. 51. Whether credit facilities in Indian Rupees or foreign currency would be permissible against security of.
No. The Scheme does not envisage extension of credit facility against the security of the deposits. Further, the.
banks should not extend any kind of credit facilities to resident individuals to facilitate remittances under the.
Q. 52. Can bankers open foreign currency accounts in India for residents under the Scheme?
No. Banks in India cannot open foreign currency accounts in India for residents under the Scheme.
Q. 53. Can an Offshore Banking Unit (OBU) in India be treated on par with a branch of the bank outside.
India for the purpose of opening of foreign currency accounts by residents under the Scheme?
No. For the purpose of the Scheme, an OBU in India is not treated as an overseas branch of a bank in India.
Q. 54. Are individuals resident in India permitted to include non-resident close relatives as joint holder(s) in.
their resident bank accounts?
Individuals resident in India are permitted to include non-resident close relative(s) (relatives as defined in.
Section 6 of the Companies Act, 1956) as joint holder(s) in their resident bank accounts on ‘former or survivor’
basis. However, such non-resident Indian close relatives shall not be eligible to operate the account during the life.
time of the resident account holder.
Q. 55. Can a Non-Resident Indian (NRI) open NRE/FCNR (B) account with their resident close relative?
Non-Resident Indian (NRI), as defined in FEMA Notification No. 5/ 2000-RB dated May 3, 2000 may be.
permitted to open NRE/FCNR(B) account with their resident close relative (relative as defined in Section 6 of the.
Companies Act, 1956) on ‘former or survivor’ basis. The resident close relative shall be eligible to operate the.
account as a Power of Attorney holder in accordance with the extant instructions during the life time of the NRI/PIO.
Q. 56. Can a resident individual make a rupee gift to a NRI/PIO who is a close relative of resident individual.
by of crossed cheque/ electronic transfer?
resident individual is permitted to make a rupee gift to a NRI/PIO who is a close relative of the resident.
نقل. The amount should be credited to the Non-Resident (Ordinary) Rupee Account (NRO) Account of the NRI/
PIO and credit of such gift amount may be treated as an eligible credit to NRO account. The gift amount would be.
within the overall limit of USD 2,00,000 per financial year as permitted under the Liberalised Remittance Scheme.
(LRS) for a resident individual. It would be the responsibility of the resident donor to ensure that the gift amount.
being remitted is under the LRS and all the remittances under the LRS during the financial year including the gift.
amount have not exceeded the limit prescribed under the LRS.
Q. 57 Are resident individuals permitted to lend to a Non-resident Indian (NRI)/ Person of Indian Origin.
A resident individual may now lend to a Non resident Indian (NRI)/ Person of Indian Origin (PIO) close.
relative [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque /electronic.
transfer, subject to the following conditions:
(i) the loan is free of interest and the minimum maturity of the loan is one year;
(ii) the loan amount should be within the overall limit under the Liberalised Remittance Scheme of USD 200,000 per.
financial year available for a resident individual. It would be the responsibility of the lender to ensure that the.
amount of loan is within the Liberalised Remittance Scheme limit of USD 200,000 during the financial year;
(iii) the loan shall be utilised for meeting the borrower's personal requirements or for his own business purposes in.
(iv) the loan shall not be utilised, either singly or in association with other person, for any of the activities in which.
investment by persons resident outside India is prohibited, namely;
(a) the business of chit fund, or.
(b) Nidhi Company, or.
(c) agricultural or plantation activities or in real estate business, or construction of farm houses, or.
(d) trading in Transferable Development Rights (TDRs).
Explanation: For the purpose of item (c) above, real estate business shall not include development of townships,
construction of residential / commercial premises, roads or bridges.
(v) The loan amount should be credited to the NRO a/c of the NRI /PIO. Credit of such loan amount may be treated.
as an eligible credit to NRO a/c;
(vii) repayment of loan shall be made by way of inward remittances through normal banking channels or by debit to.
the Non-resident Ordinary (NRO)/ Non-resident External (NRE) / Foreign Currency Non-resident (FCNR) account.
of the borrower or out of the sale proceeds of the shares or securities or immovable property against which such loan.
Q. 58 Can the loans of Non-resident close relatives by residents?
Where an authorised dealer in India has granted loan to a non-resident Indian in accordance with Regulation 7.
of the Notification No. FEMA 4/2000-RB dated May 3, 2000 such loans may also be repaid by resident close.
relative (relative as defined in Section 6 of the Companies Act, 1956) of the Non-Resident Indian by crediting the.
borrower’s loan account through the bank account of such relative.
Q. 59 Is meeting of medical expenses of NRIs close relatives by Resident Individuals is permitted?
Where the medical expenses in respect of NRI close relative (relative as defined in Section 6 of the Companies.
Act, 1956) are paid by a resident individual, such a payment being in the nature of a resident to resident transaction.
may be covered under the term “services related thereto” under Regulation 2(i) of Notification No. FEMA16/ 2000RB dated May 3, 2000.
General Information : For further details/guidance, please approach any bank authorised to deal in foreign.
exchange or contact Regional Offices of the Foreign Exchange Department of the Reserve Bank.
A person residing in India for more than one hundred and eighty-two days during the course of the preceding.
financial year but does not include –
(A) a person who has gone out of India or who stays outside India, in either case for or on taking up employment outside India, or.
for carrying on outside India a business or vocation outside India, or.
for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain.
(B) a person who has come to or stays in India, in either case, otherwise than –
for or on taking up employment in India, or.
for carrying on in India a business or vocation in India, or.
for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period.
any person or body corporate registered or incorporated in India,
an office, branch or agency in India owned or controlled by a person resident outside India,
an office, branch or agency outside India owned or controlled by a person resident in India.
(updated as on March 18, 2018)
Q.1. What is the significance of overseas direct investments for the country and for the investor?
A. Joint Ventures/Wholly Owned Subsidiaries abroad promote economic co-operation between India and the host.
بلدان. They result in transfer of technology and skills, sharing the results of Research & Development, access to.
the global market, promotion of the brand image, generation of employment and utilization raw materials available.
in India and the host country, increased exports of plant and machinery and goods and services from India, foreign.
exchange earnings through dividend earnings, royalty, technical know-how fee, etc. Since globalization of trade is a.
two-way process, integration of the Indian economy with the rest of the world with all its attendant benefits is.
achieved through overseas investment. It is the reverse of Foreign Direct Investment (FDI) i. e. Indian direct.
Q.2. Where are the guidelines pertaining to overseas direct investments available?
A. The guidelines have been notified by the Reserve Bank of India vide Notification No. FEMA 120/RB-2004 dated.
July 7, 2004, as amended from time to time, which can be accessed at the Reserve Bank’s website.
rbi. in/scripts/Fema. aspx. A Master Circular titled ‘Master Circular on Direct Investment by.
Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad’, which is a compendium of all.
notifications/circulars incorporating the developments, is also available at the website rbi. in.
Q.3. Where can one get clarifications pertaining to the guidelines on overseas investment?
A. Please see answer to Q. 2 above. Any clarifications in respect of cases not covered by the instructions may be.
obtained, giving full details of the case, from the Central Office of the Reserve Bank at the following address:
The Chief General Manager.
بنك الاحتياطي الهندي.
Foreign Exchange Department.
Overseas Investment Division.
Amar Building, 5th Floor.
Q.4. What are the general permissions available to persons (individual) resident in India for purchase / acquisition of.
A. General permission has been granted to persons (individual) resident in India for purchase / acquisition of.
securities as under:
As bonus shares on existing holding of foreign currency shares;
When not permanently resident in India, from the foreign currency resources outside India.
General permission is also available to sell the shares so purchased or acquired. A resident Indian can remit up to.
USD 200,000/- per financial year under the Liberalised Remittance Scheme (LRS), for permitted current and capital.
account transactions including purchase of securities.
Q.5. What is direct investment outside India?
A. Direct investment outside India means investments, either under the Automatic Route or the Approval Route, by.
way of contribution to the capital or subscription to the Memorandum of Association of a foreign entity, signifying a.
long-term interest in the overseas entity (setting up / acquiring a Joint Venture (JV) or a Wholly Owned Subsidiary.
This is different from portfolio investment which is stated as answers to Qs 39, 40 and 44.
Q.6. Does the definition as given in Q.5 mean that one cannot acquire an existing company either partially or.
A. An eligible Indian entity is free to acquire either a partial stake (JV) or the entire stake (WOS) in an already.
existing entity overseas, provided the valuation is as per the laid down norms. Please also see Q No. 16.
Q.7. Can overseas direct investment be made in any activity?
A. An Indian Party can make overseas direct investment in any bonafide activity (except those that are specifically.
prohibited as stated in answer to Q. 9). However, for undertaking activities in the financial services sector, certain.
additional conditions as specified in Regulation 7 of the Notification should be adhered to. Please refer answer to.
Q.8. Who are eligible to make overseas direct investment under the Automatic Route? Who is an “Indian Party”?
A. An Indian Party is eligible to make overseas direct investment under the Automatic Route. An Indian Party is a.
company incorporated in India or a body created under an Act of Parliament or a partnership firm registered under.
the Indian Partnership Act 1932 and any other entity in India as may be notified by the Reserve Bank. When more.
than one such company, body or entity makes investment in the foreign entity, such combination will also form an.
Q.9. What are the prohibited activities for overseas direct investment?
A. Real estate as defined in Regulation 2(p) of the Notification and banking business are the prohibited sectors for.
overseas direct investment.
Banking Regulation Act, 1949, from the Department of Banking Operations and Development (DBOD), CO, RBI.
Q.10. What exactly is covered under the term real estate business?
A. Real estate business means buying and selling of real estate or trading in Transferable Development Rights.
(TDRs) but does not include development of townships, construction of residential/commercial premises, roads or.
Q.11. What is the Automatic Route?
A. Under the Automatic Route, an Indian Party does not require any prior approval from the Reserve Bank for.
making overseas direct investments in a JV/WOS abroad. The Indian Party should approach an Authorized Dealer.
Category – I bank with an application in Form ODI and the prescribed enclosures / documents for effecting the.
remittances towards such investments. However, in case of investment in the financial services sector, prior approval.
is required from the regulatory authority concerned, both in India and abroad.
Q.12. What are the limits and requirements for direct investment to be made under the Automatic Route?
A. The criteria for direct investment under the Automatic Route are as under:
The Indian Party can invest up to 400% of its net worth (as per the last audited Balance Sheet) in JV / WOS.
for any bonafide activity permitted as per the law of the host country. The ceiling of 400% of net worth will.
not be applicable where the investment is made out of balances held in the EEFC account of the Indian party.
or out of funds raised through ADRs/GDRs;
The Indian Party is not on the Reserve Bank’s exporters' caution list / list of defaulters to the banking system.
published/ circulated by the Credit Information Bureau of India Ltd. (CIBIL) /RBI or any other credit.
information company as approved by the Reserve Bank or under investigation by the Directorate of.
Enforcement or any investigative agency or regulatory authority; و.
The Indian Party routes all the transactions relating to the investment in a JV/WOS through only one branch.
of an authorised dealer to be designated by the Indian Party.
Q.13. What is the procedure to be followed by an Indian party to make direct investment in a JV/WOS under the.
A. The Indian Party intending to make a direct investment under the automatic route is required to fill up form ODI.
duly supported by the documents listed therein, i. e., certified copy of the Board Resolution, Statutory Auditors.
certificate and Valuation report (in case of acquisition of an existing company) as per the valuation norms listed in.
answer to Q.16 and approach an Authorized Dealer (designated Authorized Dealer) for making the.
Q.14. Where does one find the Form ODI?
(JV) / Wholly Owned Subsidiary (WOS) Abroad’ dated July 1, 2018’ available on the RBI website.
With effect from March 2, 2018, Authorized Dealers Category – I banks have to file Part I (Sections A to D), II and.
III of form ODI on-line in the Overseas Investment Application with the Reserve Bank for allotment of UIN,
reporting of subsequent remittances, filing of APRs, etc. AD Category –I banks would continue to receive the ODI.
forms in physical form from the Indian Party.
Q.15. What is ‘financial commitment’?
A. Financial commitment means the amount of direct investments outside India by an Indian Party by way of contribution to equity shares of the JV / WOS abroad.
as loans to its the JV / WOS abroad.
100% of the amount of corporate guarantee issued on behalf of its overseas JV/WOS and.
50% of the amount of performance guarantee issued on behalf of its overseas JV/WOS.
bank guarantee/standby letter of credit issued by a resident bank on behalf of an overseas JV / WOS of the.
Indian party, which is backed by a counter guarantee / collateral by the Indian party.
Creation of charge (pledge / mortgage / hypothecation) on the movable / immovable property or other.
financial assets of the Indian party / its group companies.
(Note: The amount and period of the guarantee should be specified upfront).
Q.16. What are the valuation norms referred to in Q. 6 and Q. 13?
A. In case of partial / full acquisition of an existing foreign company where the investment is more than USD five.
million, share valuation of the company has to be done by a Category I Merchant Banker registered with the.
Securities and Exchange Board of India (SEBI) or an Investment Banker/ Merchant Banker outside India registered.
with the appropriate regulatory authority in the host country and in all other cases by a Chartered Accountant/
Certified Public Accountant.
However, in the case of investment by acquisition of shares where the consideration is to be paid fully or partly by.
issue of the Indian Party’s shares (swap of shares), irrespective of the amount, the valuation will have to be done by.
a Category I Merchant Banker registered with SEBI or an Investment Banker/ Merchant Banker outside India.
registered with the appropriate regulatory authority in the host country.
In case of additional overseas direct investments by the Indian promoter to it’s WOS which is made at premium or.
discount, the concept of valuation as indicated above shall be applicable.
Q.17. Can one freely creates a pledge/mortgage/hypothecation/charge on immovable/moveable property or other.
A. Prior permission of the Reserve Bank is required for creating such a charge on immovable/moveable property or.
other financial assets of the Indian parent / group companies.
Q.18. Are overseas investments freely allowed in all the countries and are there any restrictions regarding the.
currency of investment?
A. Investment in Pakistan is prohibited. Investments in Nepal can be only in Indian Rupees. Investments in Bhutan.
are allowed in Indian Rupees and in freely convertible currencies.
Q.19. What is the concept of a ‘designated Authorised Dealer’? Can there be more than one ‘designated Authorised.
Dealer’ for the same JV/WOS in case the JV/WOS has more than one Indian promoter?
A. The Indian party is to route all transactions in respect of a particular overseas JV/WOS only through one branch.
of an Authorized Dealer. This branch would be the ‘designated Authorised Dealer’ in respect of that JV/WOS and all.
transactions and communications relating to the investment in that particular JV/WOS are to be reported only.
through this ‘designated’ branch of an Authorized Dealer. In case the JV/WOS is being set up abroad by two or more.
Indian promoters, then all Indian promoters collectively called the Indian party, would be required to route all.
transactions in respect of that JV/WOS only through one ‘designated Authorised Dealer’.In case the Indian Party.
wants to switch over to another AD, an application by way of a letter may be made to the Reserve Bank after.
obtaining an NOC from the existing Authorized Dealer.
Q.20. What if one Indian promoter has more than one JV in either the same country or in different countries?
A. The Indian promoters are free to designate different branches of the same Authorised Dealer or branches of other.
Authorised Dealers for their separate JVs/WOSs. The only requirement is that regardless of the number of.
promoters, one JV/WOS will have only one ‘designated Authorised Dealer’ to route all its transactions.
Q.21. Is prior registration with the Reserve Bank necessary for direct investments under the Automatic Route?
A. No prior registration with the Reserve Bank is necessary for making direct investments under the automatic.
طريق. After the report of the first remittance / investment in Form ODI is received by the Reserve Bank, a Unique.
Identification Number (UIN) for that particular JV/WOS will be issued for the purpose of taking on record the.
overseas direct investment with the objective of maintaining a database for monitoring the outflows/inflows in.
respect of the overseas entities. Subsequent investments in the same project can be made only after allotment of the.
Q.22. Does the allotment of UIN by the Reserve Bank for direct investments under the automatic route constitute an.
approval from the Reserve Bank?
A. No. The allotment of UIN does not constitute an approval from the Reserve Bank for the investment made/to be.
made in the JV/WOS. The issue of UIN only signifies taking on record of the investment for maintaining the.
database. The onus of complying with the provisions of FEMA regulations rests with the AD bank and / or the.
Further, with effect from June 01, 2018 an auto generated e-mail, giving the details of UIN allotted to the JV / WOS.
under the automatic route, shall be treated as confirmation of allotment of UIN, and no separate letter shall be issued.
by the Reserve Bank to the Indian party and AD Category - I bank confirming the allotment of UIN.
Q.23. What is the Approval route? What is the procedure to be followed for investment proposed to be made under.
the Approval Route?
A. Proposals not covered by the conditions under the automatic route require the prior approval of the Reserve Bank.
for which a specific application in form ODI with the documents prescribed therein is required to be made through.
the Authorized Dealer Category – I banks. Some of the proposals which require prior approval are:
i) Overseas Investments in the energy and natural resources sector exceeding 400% of the net worth of the Indian.
companies as on the date of the last audited balance sheet;
ii) Investments in Overseas Unincorporated entities in the oil sector by resident corporates exceeding 400% of their.
net worth as on the date of the last audited balance sheet, provided the proposal has been approved by the competent.
authority and is duly supported by a certified copy of the Board Resolution approving such investment. ومع ذلك،
Navaratna Public Sector Undertakings, ONGC Videsh Ltd and Oil India Ltd are allowed to invest in overseas.
unincorporated entities in oil sector (i. e. for exploration and drilling for oil and natural gas, etc.), which are duly.
approved by the Government of India, without any limits, under the automatic route;
iii) Overseas Investments by proprietorship concerns and unregistered partnership firms satisfying certain eligibility.
iv) Investments by Registered Trusts / Societies (satisfying certain eligibility criteria) engaged in the manufacturing /
educational / hospital sector in the same sector in a JV / WOS outside India;
Applications in Form ODI - Part I may be forwarded through the designated Authorized Dealer Category – I bank to:
The Chief General Manager.
بنك الاحتياطي الهندي.
Foreign Exchange Department.
Overseas Investment Division.
Amar Building, 5th Floor.
Q.24. What are the parameters for considering proposals under the approval route?
A. Requests under the approval route are considered by taking into account, inter alia, the prima facie viability of.
the JV / WOS outside India, likely contribution to external trade and other benefits that may accrue to India through.
such investment, financial position and business track record of the Indian party and the foreign entity, experience.
Q.25. a) Can any Indian company make investment in a JV/WOS abroad in the financial services sector?
A. Only an Indian company engaged in financial services sector activities can make investment in a JV/WOS abroad.
in the financial services sector, provided it fulfills the following additional conditions:
has earned net profit during the preceding three financial years from the financial services activities;
is registered with the appropriate regulatory authority in India for conducting financial services activities;
has obtained approval for undertaking such activities from the regulatory authorities concerned both in India.
and abroad before venturing into such financial activity;
has fulfilled the prudential norms relating to capital adequacy as prescribed by the regulatory authority.
concerned in India; و.
Any additional investment by an existing JV / WOS or its step down subsidiary in the financial services sector is.
also required to comply with the above conditions.
b) Can an Indian company in the financial services sector make investment in a JV/WOS abroad in the non-financial.
A. Regulated entities engaged in financial services sector activities in India making investment in non-financial.
services activities overseas are also required to comply with the additional conditions mentioned in Q. 25 (a) above.
c) Can an Indian company set up JV / WOS for trading in Overseas Commodities Exchanges?
A. Trading in Commodities Exchanges overseas and setting up of JV / WOS for trading in Overseas Commodities.
Exchanges will be reckoned as financial services activity and will require clearance from the Forward Markets.
Commission (FMC). The FMC has put in place guidelines for allowing FMC registered members of Commodity.
Exchanges to undertake commodity related activities abroad. Indian entities desirous of setting up of JV / WOS.
overseas for trading in overseas commodities exchanges may, therefore, approach the FMC for regulatory clearance.
Q.26. What are the permissible sources for funding overseas direct investment?
A. Funding for overseas direct investment can be made by one or more of the following sources:
Drawal of foreign exchange from an AD bank in India.
Swap of shares (refers to the acquisition of the shares of an overseas entity by way of exchange of the shares.
of the Indian entity).
Capitalization of exports and other dues and entitlements.
In exchange of ADRs / GDRs issued in accordance with the Scheme for issue of Foreign Currency.
Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993 and the.
guidelines issued by Government of India in the matter.
Balances held in Exchange Earners Foreign Currency account of the Indian Party maintained with an.
Proceeds of foreign currency funds raised through ADR / GDR issues.
In respect of (6) and (7) above, the ceiling of 400 per cent of the net worth does not apply.
Q.27. Can an Indian Party utilise the net worth of its Indian subsidiary / holding company for investing in a.
A. For the purpose of reckoning net worth of an Indian party, the net worth of it’s holding company (which holds at.
least 51% direct stake in the Indian Party) or its subsidiary company (in which the Indian party holds at least 51%
direct stake) may be taken into account to the extent not availed of by the holding company or the subsidiary.
independently and has furnished a letter of disclaimer in favour of the Indian Party. However, this facility is not.
available to partnership firms. Also the partnership firm’s net worth cannot be taken into account by an incorporated.
Q.28. Can an Indian Party capitalise the proceeds of the exports to its overseas JV / WOS?
A. Yes, an Indian Party is permitted to capitalise the payments due from the foreign entity towards exports, fees,
royalties or any other dues from the foreign entity for supply of technical know-how, consultancy, managerial and.
other services within the ceilings applicable.
Capitalisation of export proceeds remaining unrealised beyond the prescribed period of realisation will require the.
prior approval of the Reserve Bank.
Indian software exporters are permitted to receive 25 % of the value of their exports to an overseas software start-up.
company in the form of shares without entering into Joint venture Agreements, with the prior approval of the.
Q.29. Can an Indian Party extend loan or guarantee to an overseas entity without any equity participation in that.
A. i) No. Loan and guarantee can be extended to an overseas entity only if there is already existing equity.
participation by way of direct investment, within the overall ceiling of 400% of the Indian party's net worth as on.
the date of the last audited balance sheet.
However, based on the business requirement of the Indian Party and legal requirement of the host country in which.
JV/WOS is located, proposals from the Indian party for undertaking financial commitment without equity.
In case, however, the overseas entity is a first level step down operating subsidiary of the Indian party, guarantee.
may be issued by the Indian party on behalf of such step down operating subsidiary provided such guarantee is.
reckoned for the purpose of computing the financial commitment of the Indian party.
In case, the overseas entity is a second or subsequent level step down operating subsidiary of the Indian party,
guarantee may be issued by the Indian party on behalf of such step down operating subsidiary with prior approval of.
the Reserve Bank provided such Indian party holds direct or indirect stake of not less 51% in the step down.
operating subsidiary and guarantee is reckoned for the purpose of computing the financial commitment of the Indian.
ii) Eligible Indian entities are allowed to invest in overseas unincorporated entities in oil sector (i. e. for exploration.
and drilling for oil and natural gas, etc.), which are duly approved by the Government of India, without any limits,
under the automatic route.
iii) Eligible Indian companies are allowed to participate in a consortium with other international operators to.
construct and maintain submarine cable systems on co-ownership basis under the automatic route.
Q.30. How are Compulsorily Convertible Preference Shares (CCPS) to be treated for the purpose of Overseas Direct.
A. With effect from March 28, 2018, Compulsorily Convertible Preference Shares (CCPS) are treated at par with.
equity shares and the Indian party is allowed to undertake financial commitment based on the exposure to JV by.
Q.31. What is the requirement for direct investment in an overseas concern by way of share swap?
A. Direct investment outside India in a JV/WOS by way of share swap arrangement can be made under the.
automatic route provided the valuation norms prescribed i. e. valuation of the shares is done by a Category I.
Merchant Banker registered with the SEBI or an Investment Banker outside India registered with the appropriate.
Regulatory Authority in the host country are satisfied, and the shares are duly issued / transferred in the name of the.
Indian investing company. Investors may also please note that all share swap transactions require the prior approval.
of the Foreign Investment Promotion Board (FIPB) for the inward leg of the investment.
Q.32. What are the permitted activities that partnership firms can undertake through overseas direct investment.
A. Partnership firms registered under the Indian Partnership Act, 1932 can make overseas direct investments subject.
to the same terms and conditions as applicable to corporate entities.
Q.33. Can the partners hold shares of the overseas concerns for and on behalf of the firm?
A. Individual partners can hold shares for and on behalf of the firm in an overseas JV/WOS, where the entire.
funding for the investments has been done by the firm provided the host country regulations or operational.
Q.34. Are there any restrictions for setting up of a second generation company? Can such step down subsidiaries be.
set up under the Automatic Route?
A. There are no restrictions on entities having JVs/WOSs abroad setting up second generation operating companies.
(step-down subsidiaries) within the overall limits applicable for investments under the Automatic Route. ومع ذلك،
companies wishing to set up step-down operating subsidiaries to undertake financial sector activities will have to.
comply with the additional requirements for direct investment in the financial services sector as indicated in Q 25.
Q.35. Can an Indian Party have a JV/WOS through a Special Purpose Vehicle (SPV) under the Automatic Route?
ج. نعم. Direct investment through the medium of a SPV is permitted under the Automatic Route, for the sole.
purpose of investment in JV/WOS overseas.
Q.36. Can an Indian Party directly fund such step - down subsidiaries?
A. Where the JV/WOS has been established through a SPV, all funding to the operating subsidiary should be routed.
through the SPV only. However, in the case of guarantees to be given to the first level step down operating.
subsidiary of the SPV, these can be given directly by the Indian Party provided such exposures are within the.
permissible financial commitment of the Indian Party.
Q.37. Can the shares of a JV/WOS abroad be pledged for the purpose of financial assistance?
A. The shares of a JV/WOS can be pledged by an Indian Party as a security for availing fund based or non-fund.
based facility for itself or for the JV/WOS, from an authorised dealer/ public financial institution in India or from an.
overseas lender, provided the overseas lender is regulated and supervised as a bank and the total financial.
commitments of the Indian entity remain within the limit stipulated by the Reserve Bank for overseas investment.
from time to time.
Q.38. What are the obligations of the Indian party, which has made direct investment outside India?
A. An Indian Party will have to comply with the following: receive share certificates or any other documentary evidence of investment in the foreign entity as an.
evidence of investment and submit the same to the designated AD within 6 months;
repatriate to India, all dues receivable from the foreign entity, like dividend, royalty, technical fees etc.;
submit to the Reserve Bank through the designated Authorized Dealer, every year, an Annual Performance.
Report in Part III of Form ODI in respect of each JV or WOS outside India set up or acquired by the Indian.
report the details of the decisions taken by a JV/WOS regarding diversification of its activities /setting up of.
decisions by the competent authority concerned of such JV/WOS in terms of the local laws of the host.
country. These are also to be included in the relevant Annual Performance Report; و.
in case of disinvestment, sale proceeds of shares/securities shall be repatriated to India immediately on.
receipt thereof and in any case not later than 90 days from the date of sale of the shares /securities and.
documentary evidence to this effect shall be submitted to the Reserve Bank through the designated.
Q.39. Is it mandatory to furnish Annual Performance Reports (APR) of the overseas JV/WOS based on its audited.
A. Where the law of the host country does not mandatorily require auditing of the books of accounts of JV / WOS,
the Annual Performance Report (APR) may be submitted by the Indian party based on the un-audited annual.
accounts of the JV / WOS provided:
The Statutory Auditors of the Indian party certifies that ‘The un-audited annual accounts of the JV / WOS.
reflect the true and fair picture of the affairs of the JV / WOS’ و.
That the un-audited annual accounts of the JV / WOS has been adopted and ratified by the Board of the.
Q.40. What are the penalties for non-submission of Annual Performance Reports (APRs)?
A. Delayed submission/ non-submission of APRs entail penal measures, as prescribed under FEMA 1999, against.
the defaulting Indian Party.
Q.41. Can a resident individual in India acquire/sell foreign securities without prior approval of the Reserve Bank?
A. Please see answer to Q.4 also.
Resident individuals can acquire/sell foreign securities without prior approval in the following cases: as a gift from a person resident outside India;
by way of ESOPs issued by a company incorporated outside India under Cashless Employees Stock Option.
Scheme which does not involve any remittance from India;
by way of ESOPs issued to an employee or a director of Indian office or branch of a foreign company or of a.
subsidiary in India of a foreign company or of an Indian company irrespective of the percentage of the direct.
or indirect equity stake in the Indian company;
as inheritance from a person whether resident in or outside India;
by purchase of foreign securities out of funds held in the Resident Foreign Currency Account maintained in.
by way of bonus/rights shares on the foreign securities already held by them.
Q.42. Can Indian corporates invest overseas other than by way of direct investment?
ج. نعم. Listed Indian companies can invest up to 50 % of their net worth as on the date of the last audited Balance.
Sheet in overseas companies, listed on a recognized stock exchange, or in the rated debt securities issued by such.
Q.43. Can a resident individual acquire shares of a foreign company in his capacity as Director?
A. Yes, Reserve Bank has given General Permission to a resident individual to acquire foreign securities to the.
extent of the minimum number of qualification shares required to be held for holding the post of Director.
Accordingly, resident individuals are permitted to remit funds under general permission for acquiring qualification.
shares for holding the post of a Director in the overseas company to the extent prescribed as per the law of the host.
country where the company is located and the limit of remittance for acquiring such qualification shares shall be.
within the overall ceiling prescribed for the resident individuals under the Liberalized Remittance Scheme (LRS) in.
force at the time of acquisition.
Q.44. Can resident individuals acquire shares from a foreign entity in lieu of the professional services rendered by.
them or in lieu of Director’s remuneration under General Permission?
A. Resident individuals are allowed under General Permission to acquire shares of a foreign entity in part / full.
consideration of professional services rendered to the foreign company or in lieu of Director’s remuneration. ال.
limit of acquiring such shares in terms of value shall be within the overall ceiling prescribed for the resident.
individuals under the Liberalized Remittance Scheme (LRS) in force at the time of acquisition.
Q.45. Can a resident individual subscribe to the rights issue of shares held by him?
A. Yes, a resident individual may acquire foreign securities by way of rights shares issued by a company.
incorporated outside India provided the existing shares were held in accordance with the provisions of FEMA.
Q.46. Are there any relaxations for individual employees/Directors of an Indian company engaged in the field of.
software for acquisition of shares in their JV/WOS abroad?
A. General permission is available for the individual employees/Directors of an Indian promoter company engaged.
in the field of software for acquisition of shares of a JV/WOS abroad provided:
the consideration for purchase does not exceed the ceiling as stipulated by RBI from time to time. أسهم.
acquired by all the employees/directors do not exceed 5% of the paid-up capital of the Joint Venture or.
Wholly Owned Subsidiary outside India; و.
after allotment of such shares, the percentage of shares held by the Indian promoter company, together with.
shares allotted to its employees is not less than the percentage of shares held by the Indian promoter.
Resident employees of Indian companies in the knowledge based sectors including working directors may purchase.
foreign securities under the ADR/GDR linked stock option scheme provided that the consideration for purchase does.
not exceed the ceiling as stipulated by RBI from time to time.
Q.47. What are the avenues available to Indian Mutual Funds for investment abroad?
A. Indian Mutual Funds registered with SEBI are permitted to invest within the overall cap of USD 7 billion in:
a) ADRs / GDRs of the Indian and foreign companies;
b) equity of overseas companies listed on recognized overseas stock exchanges; initial and follow on public.
offerings for listing at recognized overseas stock exchanges;
c) foreign debt securities - short term as well as long term with rating not below investment grade - in the countries.
with fully convertible currencies;
d) money market investments not below investment grade; repos where the counter party is not below investment.
e) government securities where countries are not rated below investment grade;
f) derivatives traded on recognized stock exchanges overseas only for hedging and portfolio balancing with.
underlying as securities;
g) short term deposits with banks overseas where the issuer is rated not below investment grade; و.
h) units / securities issued by overseas Mutual Funds or Unit Trusts registered with overseas regulators.
Q.48. What are the investment opportunities for Domestic Venture Capital Funds?
A. Domestic Venture Capital Funds registered with SEBI may invest in equity and equity linked instruments of offshore VCFs subject to an overall limit of USD 500 million.
Q.49. Is investment in agriculture permitted?
A. Resident corporates and partnership firms registered under the Indian Partnership Act, 1932 may undertake.
agricultural operations including purchase of land incidental to such activity either directly or through their overseas.
the Indian party is otherwise eligible to invest under Regulation 6 of the Notification ibid and such.
investment is within the overall specified limits, and.
for the purpose of such investment by acquisition of land overseas the valuation of land is certified by a.
Q.50. Can an Indian party issue performance guarantee in favour of overseas JV/WOS?
ج. نعم. Indian party is permitted to issue performance guarantee and only 50 per cent of the amount of the.
performance guarantees will be reckoned for the purpose of computing financial commitment to its JV/WOS.
overseas which should be within 400 per cent of the net worth of the Indian Party. Further, the time specified for the.
completion of the contract will be the validity period of the related performance guarantee. In cases where.
invocation of the performance guarantee breach the ceiling for the financial exposure of 400 per cent of the net.
worth of the Indian Party, the Indian Party is required to seek prior approval of the Reserve Bank before remitting.
funds from India, on account of such invocation.
Q.51. Can an Indian party issue corporate guarantee on behalf of its second generation subsidiary abroad?
A. Indian party is permitted to issue of corporate guarantee on behalf of second generation or subsequent level step.
down operating subsidiaries and such requests are considered under the Approval Route, provided the Indian Party.
directly or indirectly holds 51 per cent or more stake in the overseas subsidiary for which such guarantee is intended.
Q.52. Can individual indirect promoters of the Indian Party issue personal guarantee to an overseas lender on behalf.
of the JV/WOS under general permission?
A. With effect from March 28, 2018, issuance of personal guarantee by the promoters of the Indian Party as.
presently allowed under the General Permission has also been extended to the indirect resident individual promoters.
of the Indian Party with same stipulations as in the case of personal guarantee by the direct promoters.
Q.53. (a) What are the different modes of disinvestments from the JV / WOS abroad.
A. Disinvestment by the Indian party from its JV / WOS abroad may be by way of transfer / sale of equity shares to.
a non-resident / resident or by way of liquidation / merger / amalgamation of the JV / WOS abroad.
(b) Can an Indian Party disinvest in case where write off is not involved?
ج. نعم. The Indian Party can disinvest in cases where write off is not involved without prior approval from Reserve.
Bank subject to the following:
the sale is to be effected through a stock exchange where the shares of the overseas JV/ WOS are listed;
if the shares are not listed on the stock exchange and the shares are disinvested by a private arrangement, the.
share price is not less than the value certified by a Chartered Accountant / Certified Public Accountant as the.
fair value of the shares based on the latest audited financial statements of the JV / WOS;
the Indian Party does not have any outstanding dues by way of dividend, technical know-how fees, royalty,
consultancy, commission or other entitlements and / or export proceeds from the JV or WOS;
together with the audited accounts for that year has been submitted to the Reserve Bank; و.
the Indian party is not under investigation by CBI / DoE/ SEBI / IRDA or any other regulatory authority in.
(c) In case of disinvestment of stake in overseas JV/WOS, can an Indian party disinvest with write off of part of.
A. Indian Party may disinvest without prior approval of the Reserve Bank, in the under noted cases, where the.
amount repatriated on disinvestment is less than the amount of the original investment:
i) in cases where the JV / WOS is listed in the overseas stock exchange;
ii) in cases where the Indian Party is listed on a stock exchange in India and has a net worth of not less than Rs.100.
iii) where the Indian Party is an unlisted company and the investment in the overseas JV / WOS does not exceed.
USD 10 million and.
iv) where the Indian Party is a listed company with net worth of less than Rs.100 crore but investment in an overseas.
JV/WOS does not exceed USD 10 million.
(d) Are there any pre-conditions/compliances subject to which such write off at the time of disinvestment is.
ج. نعم. Please refer to part B of Q 49.
Q.54. Whether restructuring of the balance sheet of the JV / WOS abroad involving write-off of capital and.
receivables is allowed.
A. Indian company which has set up WOS abroad or has at least 51% stake in an overseas JV may write off capital.
(equity / preference shares) or other receivables (such as loans, royalty, technical knowhow fees and management.
fees in respect of the JV /WOS) even while such JV / WOS continue to function subject to the following:
(i) Listed Indian companies are permitted to write off capital and other receivables up to 25% of the equity.
investment in the JV /WOS under the Automatic Route; و.
(ii) Unlisted companies are permitted to write off capital and other receivables up to 25% of the equity investment in.
the JV /WOS with prior approval of the Reserve Bank.
The write-off / restructuring have to be reported to the Reserve Bank through the designated AD bank within 30.
days of write-off / restructuring. The write-off / restructuring is subject to the condition that the Indian Party should.
submit the following documents for scrutiny along with the applications to the designated AD Category – I bank.
a) A certified copy of the balance sheet showing the loss in the overseas WOS/JV set up by the Indian Party; و.
b) Projections for the next five years indicating benefit accruing to the Indian company consequent to such write.
Q.55. Can an Indian Party open/maintain an account in Foreign currency abroad?
A. With effect from April 2, 2018, an Indian party is allowed to open, hold and maintain Foreign Currency Account.
(FCA) abroad for the purpose of overseas direct investments wherever the host country regulation stipulate the same.
subject to certain terms and conditions.
Q. 56 Can open ended corporate guarantees be extended by an India party on behalf of its overseas subsidiary?
Ans: As per A. P. (DIR Series) Circular No. 29 March 27, 2006 no guarantee can be open ended.
Q. 57 Can a loan given to an overseas venture be converted into equity? If yes what are the reporting requirements?
Ans: Yes, a loan can be converted into equity and reported to RBI by a letter.
Scheme for Authorized Dealers Category I (AD) banks, Authorized Dealers Category-II.
and Full Fledged Money Changers Appointing Agents/Franchisees for Undertaking.
Restricted Money Changing.
(Updated as on July 4, 2018)
1. What are the Money Changing facilities presently available in India?
At present, the conversion of currency notes, coins or travellers' cheques designated in foreign currency into Indian.
Rupees and vice versa is possible through AD Category-I banks, ADs Category-II and Full Fledged Money.
Changers (FFMCs). Further, AD Category –I banks, ADs Category – II and FFMCs may appoint franchisees (also.
known as Agents) to undertake purchase of foreign currency. However, Franchisees of AD Category –I banks, ADs.
Category – II and FFMCs functioning within 10 kms from the borders of Pakistan and Bangladesh may also sell the.
currency of the bordering country, with the prior approval of the Regional offices concerned of the Reserve Bank.
Other franchisees of AD Category –I banks, ADs Category – II and FFMCs can only purchase foreign currency.
2. What is the objective of the Scheme for appointing Franchisees by AD Category-I Banks, ADs Category-II.
and FFMCs for undertaking Restricted Money Changing Activities?
The objective of the Scheme is to provide easier foreign exchange conversion facilities for travellers and tourists,
including Non Resident Indians (NRIs), by enlarging the network of money changing facilities in the country. أنه.
expected that the facility of Franchisee arrangement will enable AD Category-I banks, ADs Category-II and FFMCs.
3. What are the salient features of Franchisee Agreement?
Under the Scheme, the Reserve Bank permits AD Category – I banks, ADs Category – II and FFMCs to enter into.
franchisee agreements at their option for the purpose of carrying on Restricted Money Changing business, i. e.
conversion of foreign currency notes, coins or travelers' cheques into Rupees by the franchisees.
A franchisee can be any entity which has a place of business and a minimum Net Owned Funds of Rs. 10 كهس.
Franchisees can undertake only restricted money changing business.
AD Category – I banks, ADs Category – II and FFMCs as the Franchisers are free to decide on the tenor of the.
arrangement as also the commission or fee through mutual agreement with the franchisee. The Franchisee agreement.
to be entered into should include the following conditions:
(a) The franchisees should display the names of their franchisers, exchange rates and that they are authorized only to.
purchase foreign currency prominently in their offices. Exchange Rate for conversion of foreign currency into.
Rupees should be the same or close to the daily exchange rate charged by the AD Category – I Bank / AD Category.
- II / FFMC at its branches.
(b) The foreign currency purchased by the franchisee should be surrendered only to its franchiser within 7 working.
days from the date of purchase.
(c) The franchisee should maintain proper records of transactions.
(d) The on-site inspection of the franchisee by the franchiser should be conducted at least once a year.
4. What is the procedure for submission of application by AD Category – I bank/ AD Category - II/ FFMC to the.
Reserve Bank for appointment of franchisees?
An AD Category – I bank/ AD Category - II/ FFMC should apply to the respective Regional Office of the Reserve.
Bank, in Form RMC-F (Annex-IV of the A. P. (DIR Series) Circular No. 57 [A. P. (FL/RL Series) Circular No. 04]
dated March 9, 2009) for appointment of franchisees under this Scheme. The application should be accompanied by.
a declaration that while selecting the franchisees, adequate due diligence has been carried out and that such entities.
have undertaken to comply with all the provisions of the franchising agreement and prevailing Reserve Bank.
regulations regarding money changing. Approval would be granted by the Reserve Bank for the first franchisee.
arrangement. Thereafter, as and when new franchisee agreements are entered into, these would have to be reported.
to the Reserve Bank in Form RMC-F (Annex-IV of the A. P. (DIR Series) Circular No. 57 [A. P. (FL/RL Series)
Circular No. 04] dated March 9, 2009) on a post-facto basis, along with similar declaration as indicated above.
5. What are the checks to be ensured by AD Category-I banks/ADs Category-II/FFMCs while conducting due.
diligence of Franchisees before appointing them?
The AD Category – I banks / ADs Category – II / FFMCs should undertake the following minimum checks while.
والثور؛ existing business activities of the franchisee and its position in the area.
والثور؛ minimum Net Owned Funds of the franchisee.
والثور؛ متجر & أمب؛ Establishment / other applicable municipal certification in favour of the franchisee.
والثور؛ verification of physical existence of location of the franchisee, where restricted money changing activities will be.
والثور؛ conduct certificate of the franchisee from the local police authorities (certified copy of Memorandum and Articles.
of Association and Certificate of Incorporation in lieu of conduct certificate in respect of franchisees which are.
incorporated entities. Accordingly, Item No. 6 of the Form RMC-F in Annex-IV of the A. P. (DIR Series) Circular.
No. 57 [A. P. (FL/RL Series) Circular No. 04] dated March 9, 2009 may suitably be modified for corporate.
franchisees.) [Note: - Obtaining of Conduct Certificate of the franchisee from the local police authorities is optional.
for the franchisers. However, the franchisers may take due care to avoid appointing individuals/ entities as.
franchisees who have cases / proceedings initiated / pending against them by any law enforcing agencies.]
والثور؛ declaration regarding past criminal cases, if any, and cases initiated / pending against the franchisee or its.
directors / partners by any law enforcing agency, if any.
والثور؛ PAN Card of the franchisee and its directors / partners.
والثور؛ photographs of the directors / partners and the key persons of franchisee.
وينبغي إجراء الفحوصات المذكورة أعلاه على أساس منتظم، مرة واحدة على الأقل في السنة. The AD Category – I banks / ADs.
Category – II / FFMCs should obtain from the franchisees proper documentary evidence confirming the location of.
the franchisees in addition to personal visits to the site. The AD Category – I Banks/ ADs Category – II / FFMCs.
should also obtain a Chartered Accountant's certificate confirming the maintenance of the Net Owned Funds of the.
franchisees, i. e. Rs. 10 lakh on an ongoing basis.
6. What are the criteria for selection of centers?
(i) The AD Category – I banks / AD Category – II / FFMCsmay appoint franchisees within a distance of 100 kms.
from their controlling branches concerned.
(ii) However, this distance criterion is exempted in case of a recognised group/ chain of hotels appointed as.
franchisees, provided the headquarters of the group/ chain of hotels falls within a distance of 100 kms. of the.
controlling branch of the AD Category – I banks / ADs Category – II / FFMCs(franchiser) concerned.
(iii) Further, in case of areas declared as hilly areas (as defined by the respective State Governments/Union.
Territories) and the North-Eastern States, the distance restriction given in point (i) above is not applicable.
Note: The above criteria is applicable to new franchisees with immediate effect and to the existing franchisees latest.
7. What are the guidelines on provision for training of franchisees?
Franchisers are expected to impart training to the franchisees as regards operations and maintenance of records.
8. What are the guidelines in respect of Reporting, Audit and Inspection of franchisees?
The franchisers i. e. the AD Category – I banks / ADs Category – II / FFMCs are expected to ensure that franchisees.
put in place adequate arrangements for reporting of transactions by the franchisees to the franchisers on a regular.
basis (at least monthly). Regular spot audits of all locations of franchisees, at least once in six months, should be.
conducted by AD Category – I Banks / ADs Category – II / FFMCs. Such audits should involve a dedicated team.
and 'mystery customer' (Individuals acting as potential customers to experience and measure the extent up to which.
people and processes perform as they should) concept should be used to test the compliance level of the franchisees.
A system of annual inspection of the books of the franchisees should also be put in place. The purpose of such.
inspection is to ensure that the money changing business is being carried out by the franchisees in conformity with.
the terms of the agreement and prevailing Reserve Bank guidelines and that necessary records are being maintained.
by the franchisees.
9. Does a franchisee need to adhere to KYC/AML/CFT Guidelines?
Franchisees are required to strictly adhere to the KYC/AML/CFT guidelines, as applicable to ADs Category – I /
ADs Category – II / FFMCs.
Note:- No licence for appointment of franchisees will be issued to any FFMC / non-bank AD Category - II, against.
whom any major Directorate of Enforcement (DoE) / Directorate of Revenue Intelligence (DRI) / Central Bureau of.
Investigation (CBI) / Police case is pending. In case where any FFMC / non-bank AD Category - II has received.
one-time approval for appointing franchisees and subsequent to the date of approval, any DoE / DRI / CBI / Police.
case is filed, the FFMC / non-bank AD Category - II should not appoint any further franchisees and bring the matter.
to the notice of the Reserve Bank immediately. A decision will be taken by the Reserve Bank regarding allowing the.
FFMC / non-bank AD Category – II to appoint franchisees.
Sponsor Documents.
موصى به.
ForeX ForeX ForeX ForeX ForeX ForeX.
Share what you know and love through presentations, infographics, documents and more.
روابط مفيدة.
الحصول على التحديثات.
Subscribe to our newsletter and stay up to date with the latest updates and documents!
Social Network.
2018 - 2017 © كل الحقوق محفوظة.
Lost your password? الرجاء إدخال عنوان البريد الإلكتروني الخاص بك. You will receive a link to create a new password.

Forex & exchange currency FAQ's.
How much foreign exchange can I carry on on a trip abroad?
What are the various documents that are needed to purchase Foreign Currency?
How can I pay for the forex purchased from doorstepforex?
For amounts up to Rs. 50,000, you can use any payment method including cash. If the total amount due exceeds Rs. 50,000, you are only allowed to pay using one of the following payment modes:
Net Banking Personal Cheque (subject to clearance) Pay Order (must accompany bank statement showing debit of this transaction) Demand Draft (must accompany bank statement showing debit of this transaction) RTGS/NEFT.
What if my journey or tour is cancelled or postponed after buying forex?
In the event of cancellation of the journey, the foreign exchange drawn for this specific travel must be surrendered within 60 days from the date of its purchase.
Are Traveller’s Cheques globally acceptable?
Foreign Currency Traveller's Cheques are accepted worldwide in over 400,000 locations spread across 200 countries. They can either be encashed or used at exchange bureaus, banks, hotels, shops, restaurants and other establishments; thereby making your travel convenient and hassle-free.
Can I get a refund for my Foreign Currency Traveller’s Cheques purchased from Doorstepforex if I do not use them?
نعم فعلا. When you return to India, you can encash any unused Foreign Currency Traveller’s Cheques issued by us.
ما هي بطاقة الفوركس المدفوعة مسبقا؟
Prepaid forex cards are Visa/ Mastercard cards and are accepted at most ATMs and stores/ hotels etc. abroad. البطاقات المدفوعة مسبقا هي الأكثر الموصى بها وأسلم طريقة لتحمل العملة.
ما هي العملات التي تتوفر بها بطاقات الفوركس المدفوعة مسبقا؟
US Dollar British Pound Euro Japanese Yen Australian Dollar Canadian Dollar Swiss Franc Singapore Dollar UAE Dirham Swedish Krone Hong Kong Dollar Thai Baht.
What is the validity of the Prepaid Forex Cards?
In general, forex cards issued by Axis Bank and HDFC Bank are valid for 5 years from the date of issue, while ICICI Bank forex cards are valid for 3 years from the date of issue.
My foreign holiday is 45 days away. Can I buy Foreign Exchange now?
نعم فعلا. You can buy foreign currency 45 days ahead of your date of travel.
Is it advisable to carry foreign exchange in cash while abroad? What is the best way to carry money?
You can carry foreign currency worth up to $3000 as cash, however the best way to carry foreign currency is forex cards.
What is the validity period of the Foreign Currency Traveller’s Cheques?
There is no validity period for Traveller’s Cheques – if unused, you can use them on your next trip abroad as well.
What do I do if my Foreign Currency Traveller’s Cheques are lost or stolen?
Uptil when can I get a refund on my unused Traveller’s Cheques?
Unused Foreign Currency Traveller’s Cheques should be surrendered within 45 days of your return to India.
How do I know that the currency notes that are being given to me are genuine?
We issue a bill of sale at the time of the exchange. In case of any doubt, you may note the currency number on that bill of sale.
Can I take foreign exchange against studies abroad in shape of prepaid cards or traveller’s cheques?
نعم فعلا. We also provide a direct remittance service to the institute you are getting enrolled in.
What documents do I need when surrendering or selling currency?
For amounts up to USD 200, any form of ID will do. For amounts greater than USD 200, you will need either a passport (in case of NRIs/foreign visitors) or another Govt. issued photo ID such as driving license, voter’s card, etc.
If the amount exceeds USD 5,000 in cash or exceeds USD 10,000 in total, you will also need a Currency Declaration form.
لماذا يجب أن أشتري بطاقة الفوركس المدفوعة مسبقا مقابل. بطاقة الائتمان / الخصم؟
تقدم بطاقة الفوركس رسوما ضئيلة أو معدومة من المعاملات مقابل معدلات معاملات بطاقات الائتمان / الخصم التي يمكن أن تصل إلى 8.5٪!
What should I do if the merchant says that my forex card doesn’t work?
Please ask the merchant to ensure that he is swiping your card through a credit card terminal and not a debit card terminal. كما أنه يحتاج إلى التأكد من أن الجهاز متصل بالإنترنت ومتصل. In case both these scenarios don’t work, please report it to us immediately.
كيف يمكنني منع بطاقتي إذا فقدت أو سرقت؟
You can block your card by logging into your account online, or by calling the card-issuing bank’s helpline directly.
هل يمكنني الاحتفاظ برصيد العملة الأجنبية على بطاقتي بعد عودتي إلى الهند؟
نعم، يمكنك الاحتفاظ بالبطاقة إذا كان الرصيد المتبقي على البطاقة أقل من 2000 دولار أمريكي أو ما يعادلها. In case the balance exceeds this limit, per regulatory norms, you are required to surrender it in not more than 180 days of your return.
كيف يمكنني سحب النقود من أجهزة الصراف الآلي في الخارج؟
يمكنك سحب النقود من أي أجهزة الصراف الآلي المتصلة بالشبكة عن طريق دفع رسوم رمزية. Kindly ensure that you select the type of Account as "Checking / Current" or "Credit”. The Savings option will not work for prepaid Forex Forex Card.
هل يمكنني التحقق من رصيد بطاقتي في ماكينة الصراف الآلي؟
Yes you can check the balance in most ATMs abroad, and you’re the figures will be reflected in local currency. Please note that this might incur a nominal fee. ومع ذلك، يمكنك التحقق من رصيدك على حسابك على الانترنت مجانا من التكلفة.
How I will get confirmation of my order?
You will receive an order confirmation email & SMS through your registered email address and mobile number.
What is the best option to collect my currency notes?
We provide doorstep delivery and you can also collect your currency notes from our nearest branch.
Where can I find the details of my order?
Just log in to your account at DoorstepForex and you can see the details of your recent orders, as well as of previous orders.
Whom should I contact if I am unable to see my order status?
You can email our customer support team at info@doorstepforex, or call us at 8652056666.
Can I purchase multiple currencies or products in one order?
Yes, you can include multiple currencies and products in a single order - you just have to add them all to your cart and proceed as normal.
Do I need to register before I order on DoorstepForex?
No, you can place an order for your required currency without registering. However, registration gives you access to rate alerts, order history and order status, among other exclusive features.
How long does it take you to provide doorstep delivery?
Orders received prior to 3.00 pm are delivered on the same business day. Any order received after 3.00 pm may still be delivered on the same business day but in the worst case we guarantee delivery on the next day.
Who is authorised by the Reserve Bank to sell foreign exchange for travel purposes?
Who is an Authorised Dealer?
How much foreign exchange can one buy when traveling abroad on private visits to a country outside India?
For private visits abroad, other than to Nepal and Bhutan, any resident can obtain foreign exchange up to an aggregate amount of USD 10,000 from an Authorised Dealer in any one financial year on a self-declaration basis, irrespective of the number of visits undertaken during the year. This limit of USD 10,000 or its equivalent per financial year for private visits can also be utilised by a person who is using foreign exchange for travel abroad for any purpose; such as for employment, immigration or studies.
Foreign exchange is not available for visits to Nepal or Bhutan for any purpose. A resident Indian is allowed to take INR of Rs. 100 denomination or lesser to Nepal and Bhutan without limit.
How much foreign exchange is available for a business trip?
For business trips abroad to countries other than Nepal or Bhutan, a person can carry foreign currency up to USD 25,000 per visit. Visits in connection with the attending of an international conference, seminar, specialised training, study tour, apprentice training, etc. are treated as business visits. Release of foreign exchange exceeding USD 25,000 for business travel abroad, irrespective of the period of stay, requires prior permission from the Reserve Bank.
As mentioned previously, no release of foreign exchange is admissible for any kind of travel to Nepal or Bhutan, or for any transaction with persons resident in Nepal.
Investments in Bhutan are permitted in Indian Rupees as well as in freely convertible currencies. If investment is made in freely convertible currencies, the sale proceeds are required to be repatriated to India in freely convertible currencies.
How much foreign currency can be taken while buying foreign exchange for travel abroad?
Travellers going to all countries other than (a) and (b) below are allowed to purchase foreign currency notes/coins up to USD 3000. Additional amounts can be carried in the form of traveller’s cheques or banker’s drafts. Exceptions to this are:
(a) Travellers proceeding to Iraq and Libya who can draw foreign exchange in the form of foreign currency notes and coins not exceeding USD 5000 or its equivalent.
(b) Travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States who can draw the entire foreign exchange in the form of foreign currency notes or coins. For travellers proceeding for the Haj/Umrah pilgrimage, the full amount of BTQ entitlement in cash, or up to the cash limit specified by the Haj Committee of India, may be released by the ADs and FFMCs.
How much foreign exchange can be drawn for medical treatment abroad?
AD Category I banks and AD Category II may release foreign exchange up to USD 100,000 or its equivalent to resident Indians for medical treatment abroad on a self-declaration basis, without insisting on any estimate from a hospital or doctor in India or abroad. A person travelling abroad for medical treatment can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India or abroad.
An amount up to USD 25,000 is allowed for the maintenance expenses of a patient going abroad for medical treatment or a check-up, or for a person accompanying a patient going abroad for medical treatment/check-up.
The amount of USD 25,000 allowed to the patient going abroad is in addition to the limit of USD 100,000 mentioned above.
What are the facilities available to people pursuing their studies abroad?
For students, the foreign exchange available is either the estimate received from the institution abroad or USD 10,000 per academic year, whichever is higher. This amount can be transacted from an AD Category I bank and AD Category II. Students travelling abroad for studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA 1999. Educational and other loans availed of by students as residents in India are allowed to continue. A student holding an NRO account may withdraw and repatriate up to USD 1 million/financial year from his NRO account. The student may avail of an amount of USD 10,000 or its equivalent for incidental expenses out of which USD 3000 or its equivalent may be carried in the form of foreign currency while travelling abroad for studies.
What are the documents required for withdrawal of Foreign Exchange for the above purpose?
How much foreign exchange is available to a person going abroad on employment?
How much foreign exchange is available to a person going abroad on emigration?
Is there any category of visit which requires prior approval from the Reserve Bank or the Government of India?
Is permission required to receive grants/donations from abroad under the Foreign Contribution Regulation Act 1976?
The Foreign Contribution Regulation Act 1976 is administered and monitored by the Ministry of Home Affairs whose address is given below:
Foreigners Division, Jaisalmer House, 26, Mansingh Road, New Delhi-110011.
No specific approval from the Reserve Bank is required in this regard.
How many days in advance one can buy foreign exchange for travel abroad?
Can one pay by cash the full rupee equivalent of foreign exchange being purchased for travel abroad?
Is there any time-frame for a traveller who has returned to India to surrender foreign exchange?
Should foreign coins be surrendered to an Authorised Dealer on return from abroad?
How much foreign exchange can a resident individual send as gift/donation to a person resident outside India?
Is it permitted to use International Credit Card (ICC)/ATM/Debit card for undertaking foreign exchange transactions?
Use of International Credit Cards (ICCs)/ATMs/Debit Cards can be made for travel abroad in connection with various purposes. The entitlement of foreign exchange on International Credit Cards (ICCs) is limited by the credit limit fixed by the card-issuing authority only. With ICCs, one can:
(i) meet expenses/make purchases while abroad.
(ii) make payments in foreign exchange for purchase of books and other items through internet in India.
If the person has a foreign currency account in India or with a bank overseas, he/she can even obtain ICCs of overseas banks and reputed agencies. However, use of International Credit Cards/ATMs/Debit Cards is NOT permitted for prohibited transactions indicated in Schedule -1 of FEM (CAT) Rules 2000 such as purchase of lottery tickets, banned magazines etc.
Use of these instruments for payment in foreign exchange in Nepal and Bhutan is not permitted.
How much Indian currency can a person carry while going abroad?
Residents are free to take currency up to a total amount not exceeding Rs. 10,000 per person on their travel abroad (other than to Nepal and Bhutan). They may take or send outside India (other than to Nepal and Bhutan) up to two commemorative coins each.
Explanation: ‘Commemorative Coin’ refers to coins issued by Government of India Mint to commemorate any specific occasion or event.
How much Indian currency can be brought in while coming into India?
A resident of India, who has gone out of India on a temporary visit, may bring currency notes up to an amount not exceeding Rs. 10,000 into India at the time of his return from any place outside India other than Nepal and Bhutan, A person can take to or bring back from Nepal or Bhutan currency notes of Government of India and Reserve Bank notes in denominations not exceeding Rs. 100.
How much foreign exchange can be brought in while visiting India?
Is it required to follow complete export procedure when a gift parcel is sent outside India?
A person resident in India is free to send or export any gift article of value not exceeding Rs. 500,000, provided export of that item is not prohibited under the extant Foreign Trade Policy and the exporter submits a declaration that goods of gift are not more than Rs. 500,000 in value.
Export of goods or services up to Rs. 500,000 may be made without furnishing the declaration in Form GR/SDF/PP/SOFTEX, as the case may be.
How much jewellery can be carried while going abroad?
Can a resident extend local hospitality to a non-resident?
Can residents purchase air tickets in India for travel that does not include India?
Can a resident open a foreign currency denominated account in India?
Persons resident in India are permitted to maintain foreign currency accounts in India under the following three Schemes:
ا. Exchange Earners Foreign Currency Accounts:-
All categories of resident foreign exchange earners can credit up to 100 per cent of their foreign exchange earnings, as specified in the paragraph 1 (A) of the Schedule to Notification No. FEMA 10/2000-RB dated 3rd May, 2000 and as amended from time to time, to their EEFC Account with an Authorised Dealer in India. Funds held in EEFC account can be utilised for all permissible current account transactions and also for approved capital account transactions as specified by the extant Rules/Regulations/Notifications/Directives issued by the Government/RBI from time to time. The account is maintained in the form of a non-interest bearing current account.
ب. Resident Foreign Currency Accounts : –
A person resident in India may open, hold and maintain with an Authorised Dealer in India a Resident Foreign Currency (RFC) Account to keep their foreign currency assets which were held outside India at the time of return can be credited to such accounts. The foreign exchange received as (i) pension of any other superannuation or other monetary benefits from the employer outside India; (ii) received or acquired as gift or inheritance from a person referred to sub-section (4) of section 6 of FEMA, 1999 or (iii) referred to in clause (c) of section 9 of the Act or acquired as gift or inheritance there from or (iv) received as the proceeds of life insurance policy claims/maturity/surrender values settled in foreign currency from an insurance company in India permitted to undertake life insurance business by the Insurance Regulatory and Development Authority; may also be credited to this account.
RFC account can be maintained in the form of current or savings or term deposit accounts.
The funds in RFC account are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment outside India.
ج. Resident Foreign Currency (Domestic) Account:-
A resident Individual may open, hold and maintain with an Authorised Dealer in India, a Resident Foreign Currency (Domestic) Account, out of foreign exchange acquired in the form of currency notes, Bank notes and traveller’s cheques, from any of the sources like, payment for services rendered abroad, as honorarium, gift, services rendered or in settlement of any lawful obligation from any person not resident in India. The account may also be credited with/opened out of foreign exchange earned abroad like proceeds of export of goods and/or services, royalty, honorarium, etc., and/or gifts received from close relatives (as defined in the Companies Act) and repatriated to India through normal banking channels. The account shall be maintained in the form of Current Account and shall not bear any interest. There is no ceiling on the balances in the account. The account may be debited for payments made towards permissible current and capital account transactions.
Can a person resident in India hold assets outside India?
In terms of sub-section 4, of Section (6) of the Foreign Exchange Management Act 1999, a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. (Please also refer to the Liberalised Remittance Scheme of USD 125,000 discussed below).
II. Liberalised Remittance Scheme (LRS) of USD 125,000.
What is the Liberalised Remittance Scheme of USD 125,000?
Please provide an illustrative list of capital account transactions permitted under the scheme.
What are the prohibited items under the Scheme?
The remittance facility under the Scheme is not available for the following:
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweepstakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules 2000.
ii) Remittance from India for margins or margin calls to overseas exchanges/overseas counterparty.
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
iv) Remittance for trading in foreign exchange abroad.
v) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan.
vi) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as “non cooperative countries and territories”, from time to time.
viii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
Whether LRS facility is in addition to existing facilities detailed in Schedule III under remittances?
The facility under the Scheme is in addition to those already available for private travel, business travel, studies, medical treatment, etc., as described in Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000. The Scheme can also be used for these purposes.
However, gift and donation remittances cannot be made separately and have to be made under the Scheme only. Accordingly, resident individuals can remit gifts and donations up to USD 125,000 per financial year under the Scheme.
Further, a resident individual can give rupee gifts to his visiting NRI/PIO close relatives [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque/electronic transfer within the overall limit of USD 125,000 per financial year for the resident individual and the gifted amount should be credited to the beneficiary’s NRO account. An individual resident can lend money by way of crossed cheque/electronic transfer to a Non resident Indian (NRI)/Person of Indian Origin (PIO) close relative [means relative as defined in Section 6 of the Companies Act 1956] within the overall limit of USD 125,000 per financial year under the Liberalised Remittance Scheme, to meet the borrower’s personal or business requirements in India, subject to conditions. The loan should be interest free and have a maturity of minimum one year and cannot be remitted outside India.
Are resident individuals under this Scheme required to repatriate the accrued interest/dividend on deposits/investments abroad, over and above the principal amount?
Are remittances under the Scheme on gross basis or net basis (net of repatriation from abroad)?
Can remittances under the facility be consolidated in respect of family members?
Can one use the Scheme for purchase of objects of art (paintings, etc.) either directly or through auction house?
Is the AD required to check permissibility of remittances based on nature of transaction or allow the same based on remitters declaration?
Can remittance be made under this Scheme for acquisition of ESOPs?
Is this scheme in addition to acquisition of ESOPs linked to ADR/GDR (i. e. USD 50,000 for a block of 5 calendar years)?
Is this Scheme is in addition to acquisition of qualification shares (i. e. USD 20,000 or 1% of paid up capital of overseas company, whichever is lower)?
Can a resident individual invest in units of Mutual Funds, Venture Funds, unrated debt securities, promissory notes, etc., under this scheme?
Can an individual, who has availed of a loan abroad while as a non-resident Indian repay the same on return to India, under this Scheme as a resident?
Is it mandatory for resident individuals to have PAN number for sending outward remittances under the Scheme?
In case a resident individual requests for an outward remittance by way of issuance of a demand draft (either in his own name or in the name of the beneficiary with whom he intends putting through the permissible transactions) at the time of his private visit abroad, whether the remitter can effect such an outward remittance against self-declaration?
Are there any restrictions on the frequency of the remittance?
What are the requirements to be complied with by the remitter?
The individual will have to designate a branch of an AD through which all the remittances under the Scheme will be made. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance. If the applicant seeking to make the remittance is a new customer of the bank, Authorised Dealers should carry out due diligence on the opening, operation and maintenance of the account.
Further, the AD should obtain bank statement for the previous year from the applicant to satisfy themselves regarding the source of funds. If such a bank statement is not available, copies of the latest Income Tax Assessment Order or Return filed by the applicant may be obtained. He has to furnish an application-cum-declaration in the specified format regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme.
Can an individual, who has repatriated the amount remitted during the financial year, avail of the facility once again?
Can remittances be made only in US Dollars?
In the past, resident individuals could invest in overseas companies listed on a recognised stock exchange abroad and which has the shareholding of at least 10 per cent in an Indian company listed on a recognised stock exchange in India. Does this condition still exist?
Investment by resident individual in overseas companies is subsumed under the Scheme of USD 125,000. The requirement of 10 per cent reciprocal shareholding in the listed Indian companies by such overseas companies has since been dispensed with.
III. Guidelines for Financial Intermediaries offering special schemes, protection under the Scheme.
Are intermediaries expected to seek specific approval for making overseas investments available to clients?
Are there any restrictions on the kind/quality of debt or equity instruments an individual can invest in?
Whether credit facilities in Indian Rupees or foreign currency would be permissible against security of such deposits?
Can bankers open foreign currency accounts in India for residents under the Scheme?
Can an Offshore Banking Unit (OBU) in India be treated on par with a branch of the bank outside India for the purpose of opening of foreign currency accounts by residents under the Scheme?
Are individuals resident in India permitted to include non-resident close relatives as joint holder(s) in their resident bank accounts?
Can a Non-Resident Indian (NRI) open NRE/FCNR (B) account with their resident close relative?
Can a resident individual make a rupee gift to a NRI/PIO who is a close relative of resident individual by of crossed cheque/electronic transfer?
Are resident individuals permitted to lend to a Non-resident Indian (NRI)/Person of Indian Origin (PIO)?
A resident individual may now lend to a Non resident Indian (NRI)/Person of Indian Origin (PIO) close relative [means relative as defined in Section 6 of the Companies Act, 1956] by way of crossed cheque/electronic transfer, subject to the following conditions:
(i) the loan is free of interest and the minimum maturity of the loan is one year;
(ii) the loan amount should be within the overall limit under the Liberalised Remittance Scheme of USD 125,000 per financial year available for a resident individual. It would be the responsibility of the lender to ensure that the amount of loan is within the Liberalised Remittance Scheme limit of USD 125,000 during the financial year;
(iii) the loan shall be utilised for meeting the borrower’s personal requirements or for his own business purposes in India;
(iv) the loan shall not be utilised, either singly or in association with other person, for any of the activities in which investment by persons resident outside India is prohibited, namely;
(a) the business of chit fund, or (b) Nidhi Company, or (c) agricultural or plantation activities or in real estate business, or construction of farmhouses, or (d) trading in Transferable Development Rights (TDRs).
Explanation: For the purpose of item (c) above, real estate business shall not include development of townships, construction of residential/commercial premises, roads or bridges.
(v) The loan amount should be credited to the NRO a/c of the NRI/PIO. Credit of such loan amount may be treated as an eligible credit to NRO a/c;
(vi) the loan amount shall not be remitted outside India; و.
(vii) repayment of loan shall be made by way of inward remittances through normal banking channels or by debit to the Non-resident Ordinary (NRO)/Non-resident External (NRE)/Foreign Currency Non-resident (FCNR) account of the borrower or out of the sale proceeds of the shares or securities or immovable property against which such loan was granted.
Can the loans of Non-resident be repaid by resident close relatives? Can the loans of Non-Resident be repaid by close relatives who are resident in India?
Is meeting of medical expenses of NRIs’ close relatives by Resident Individuals permitted?
هل يمكنني تتبع معاملاتي أثناء السفر إلى الخارج؟
What documents do I need for travel on account of employment abroad?
Valid passport and employment Visa One way confirmed Air Ticket PAN copy for all forex transactions in cases where total amounts exceed US Dollars 25000. Form 60 / 61 in case PAN not available.
ما هي الوثائق التي أحتاجها للسفر بسبب الهجرة؟
Valid passport and emigration Visa One way confirmed Air Ticket PAN copy for all forex transactions in cases where total amounts exceed US Dollars 25000. Form 60 / 61 in case PAN not available.
What documents do I need for travel on account of medical treatment abroad?
Original and valid passport Valid visa for the country of travel (except where VISA on arrival applies) Confirmed ticket-showing travel within 60 days of taking foreign exchange PAN copy for all forex transactions in cases where total amounts exceed US Dollars 25000. Form 60 / 61 in case PAN not available Application / self declaration.
What documents do I need for overseas studies / education abroad?
Confirmed one-way Air ticket Original Passport along with the Student Visa. Prospectus/Offer Letter/Admission Letter in original, thereof giving full details of the course of study, tuition fees payable etc. In case of person traveling to USA Form I-20 is required. PAN copy for all forex transactions in cases where total amounts exceed US Dollars 25000. Form 60 / 61 in case PAN not available.
ما هي الوثائق التي أحتاجها للسفر إلى رجال الأعمال؟
Original and valid passport Valid visa for the country of travel (except where VISA on arrival applies) Confirmed ticket-showing travel within 60 days of taking foreign exchange PAN copy for all forex transactions in cases where total amounts exceed US Dollars 25000. Form 60 / 61 in case PAN not available.
What documents do I need for personal / leisure travel?
Original and valid passport Valid visa for the country of travel (except where VISA on arrival applies) Confirmed ticket-showing travel within 60 days of taking foreign exchange.
Can Non resident Indians, foreigners buy foreign exchange for personal / leisure travel?
Non Resident Indians living in India beyond 180 days are eligible to purchase forex under the said scheme Foreign Nationals permanently resident in India are eligible to avail of this quota provided the applicant is not availing of facilities for remittance of his/her salary, savings etc. abroad in terms of the existing FEMA regulations. Similarly, Foreign born wife of an Indian national.
كم من العملات الأجنبية يمكن جلبها إلى الهند من قبل أجنبي أو غير مقيم الهندي؟
لا حد على كمية من العملات الأجنبية التي يمكن جلبها إلى الهند. However currency notes beyond USD 5000 (equivalent) and upto USD 10000 (total) need to be reported at customs and currency declaration form (CDF) obtained CDF is required whenever currency / forex surrender exceeds respective limits.
What is the foreign exchange entitlement (limit) for business travel?
Up to US$ 25,000 per business trip, irrespective of period of stay and number of times in a financial year. Personal travel can be combined with business travel and additional forex up to USD 2,50,000 per annum can be drawn over and above business travel entitlement Within above entitlements upto US$ 3,000 in Currency notes per visit are allowed. The rest must be carried in any other form.
Are there any exceptions to the travel entitlement (limit) restrictions?
For Travelers proceeding to Iraq or Libya exchange in the form of currency notes may be sold up to limit not exceeding US$ 5,000 or its equivalent per resident individual in a financial year (total USD 10000)? For Travelers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States, entire exchange (USD 2, 50,000) can be released in the form of currency notes. ؟ Travelers proceeding to Pakistan, Bangladesh or Myanmar by land route are eligible up to limit of US$ 2, 50,000 or its equivalent per resident individual in a calendar year. ؟ For Airline staff, open ticket may be accepted. Proof of Airline staff will be required by the bank.
What is the foreign exchange entitlement (limit) for education/ studies overseas?
US$ 2, 50,000 per annum towards tuition fees, maintenance expenses books, etc.
Can I take foreign exchange against studies abroad in shape of pre-paid cards, traveler’s cheques?
Yes, forex for studies abroad can be taken in all forms except cash currency where the limit of USD 3000 applies. Pre-paid cards can be re-loaded by student’s parents / guardians at any time. ومع ذلك، لا يمكن اتخاذ المساهمين الأساسيين إلا عندما يكون الطالب حاضرا فعليا في الهند للمعاملة.
What is the foreign exchange (limit) in cases of overseas medical treatment?
Up to US$ 2, 50,000 its equivalent for the patient going abroad for medical treatment or checkup abroad. Upto US$ 2, 50,000 for accompanying as attendant to a patient going abroad for medical treatment/checkup.
In case I am going abroad for medical treatment / check-up accompanied by an attendant, is that person also entitled to foreign exchange under the oversea medical treatment scheme?
Yes the attendant is entitled to travel entitlement of USD 2, 50,000 / annum.

أسئلة مكررة.
كيف يمكنني معرفة أن يتم تأكيد طلبي؟
Once you complete your order on BookMyForex, we will send you a confirmation mail to the email address you enter during your order letting you know that your order is confirmed. In this mail, you will be provided with a "Unique Order Reference Number" along with your order details and the documents you`ll need when you complete the order. We also make it a point to call each of our customers right after the order is booked to answer any queries you may have.
Are there any charges for door delivery?
Door delivery charges may vary per city to a certain extent. In most cities, door delivery charges are as follows: If order total is under Rs. 5000 - Not eligible for door delivery If order total is under Rs. 50,000 - Rs. 100 door delivery charge is applied If order total is over Rs. 50,000 - No door delivery charge will be applied.
How long does it take you to provide doorstep delivery?
Orders received prior to 1 pm are delivered on the same business day. Any order received after 1 pm may still be delivered on the same business day but in the worst case we guarantee delivery on the next business day.
What are the possible locations where I can complete my order and receive my foreign exchange or Indian Rupees (in case of sale)?
BookMyForex has tied up with several Banks & RBI authorized Money Changers to create a network of over 5000 locations across 126 cities in India. There's a very good chance a partnering location exists in your neighborhood. To see the entire list of cities that we're present in, check out this link: bookmyforex/currency-exchange.
Is it safe to use my credit/debit card on BookMyForex for booking fixed rate order?
Your online transaction on BookMyForex is processed over a secure HTTPS connection and secured with the highest levels of encryption available. All credit card and debit card payments on BookMyForex are processed through a secure and trusted payment gateway and your credit card/ debit card/ net-banking info is never stored on our servers.
What does pay on delivery mean?
Pay on delivery means that you don't have to pay anything until you receive your forex products. You can opt for pay on delivery by selecting the no obligation order on BookMyForex site.
How can I pay for the foreign exchange purchased on BookMyForex?
Upto Rs. 50,000 (per traveler), you can pay using any of the following payment modes and as well as cash. If the total amount due exceeds Rs. 50,000 you are only allowed to pay using one of the following payment modes: RTGS or NEFT for instant acceptance (Subject to clearance; rates may change in this case) Personal Cheque (Subject to clearance; rates may change in this case) Pay Order - Subject to clearance (Must accompany bank statement showing debit of this transaction) Demand Draft - Subject to clearance (Must accompany bank statement showing debit of this transaction; rates may change in this case) Payment via credit/ debit card/ online netbanking and e-wallets may be possible in some cases and may attract additional charges.
Are rates published on BookMyForex updated?
The rates published on BookMyForex portal are updated on real time basis as they are connected to a live market data feed.
Can I purchase multiple currencies & products in one order?
Yes, you can add multiple currencies & products you wish to purchase in one order. You just need to add the currency/product in the order cart and proceed.
What is a fixed rate order?
BookMyForex allows you to freeze the live rates that you on site until three working days. This option gives you the benefit of booking your order when you think rates are likely to be favorable. You will be required to pay 2% of the order amount as a refundable rate guarantee deposit to freeze/fix the rates. This advance will be refunded to you in full immediately after the order is completed. You can book a fixed rate order from 10.00AM to 3:30PM on weekdays excluding bank holidays. Please note that while refund notification on your card will be instantaneous, balance restore process may take up to 10 days depending on the mode of payment and issuing Bank.
What is a no obligation order?
No obligation means you don`t have to pay a single rupee to book the order. This is similar to a cash on delivery order where you pay the entire amount due upon order completion. If you are not eligible for COD, rate can be decided after realization of funds in channel partner`s account. This order type, however, does not guarantee you a rate and the rates prevalent at the time of order completion are applied to your order. This type of order can be booked 24x7x365.
What's my foreign exchange entitlement (limit) for personal / leisure travel?
Not exceeding US Dollars 2,50,000 (If not consumed any part of it in any other purpose stated as per RBI's guidelines covering LRS) in a financial year; can be utilized in one or more number of visits. This scheme used to be called Basic Travel Quota (BTQ) This limit has been subsumed under the new Liberalized Remittance Scheme (LRS). If an individual has already remitted any amount under the Liberalized Remittance Scheme in a financial year, then the applicable limit for travelling purpose for such individual would be reduced from USD 250,000 by the amount so remitted.
Is there a separate limit for carrying currency notes ?
Travelers are allowed to purchase foreign currency notes/coins only up to US$ 3000 individually. Balance amount can be taken in the form of Traveler’s Cheque, banker's draft or Prepaid Travel Cards. Exceptions to this rule are the following:
(a) travelers proceeding to Iraq and Libya can draw foreign exchange in the form of foreign currency notes and coins not exceeding US$ 5000 or its equivalent.
(b) travelers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States who can draw entire foreign exchange in the form of foreign currency notes or coins. For travelers proceeding for Haj/ Umrah pilgrimage, full amount of BTQ entitlement (USD 250, 000) in cash or up to the cash limit as specified by the Haj Committee of India, may be released by the ADs and FFMCs.
Are children and minors also entitled to foreign exchange when they travel abroad ?
Yes, children of all ages are allowed same entitlements (limits) as adults, But Minors/children below age of 14 cannot carry Forex card/Travelers cheque.
Can Non resident Indians, foreigners buy foreign exchange for personal / leisure travel?
* Non Resident Indians living in India beyond 180 days are eligible to purchase forex under the said scheme.
* Foreign Nationals permanently resident in India are eligible to avail of this quota provided the applicant is not availing of facilities for remittance of his/her salary, savings etc. abroad in terms of the existing FEMA regulations.
* Similarly, Foreign born wife of an Indian national.
Are there any rules with respect to how much prior to travel forex entitlements can be drawn?
Yes, date of travel must not be later than 60 days from the date of purchase of foreign exchange. Exceptions: Airlines staff against staff ticket may be exempted from this rule.
Can this limit for foreign exchange against Leisure / Personal travel be combined with Business, Medical, Education related travel?
All type of travels and remittances abroad are now under RBI`s guidelines covering Liberalized Remittance Scheme. If an individual has already remitted any amount under the Liberalized Remittance Scheme in a financial year, then the applicable limit for travelling purpose for such individual would be reduced from USD 250,000 by the amount so remitted / utilized. However, no foreign exchange is available for visit to Nepal and/or Bhutan for any purpose.
What is the foreign exchange entitlement (limit) for business travel?
Up to US$ 250,000 per year , irrespective of period of stay and number of times in a financial year. Within above entitlements upto US$ 3,000 in Currency notes per visit are allowed. The rest must be carried in any other form. The amount of foreign Exchange released would not exceed USD overall limit of USD 250,000 under RBI`s Liberalized Remittance Scheme. If an individual has already remitted any amount under the Liberalized Remittance Scheme in a financial year, then the applicable limit for travelling purpose for such individual would be reduced from USD 250,000 by the amount so remitted / utilized.
ما هو تعريف المقيم الهندي؟
"Person resident in India" is defined in Section 2(v) of FEMA, 1999 as :
A person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include:
1. A person who has gone out of India or who stays outside India, in either case -
* For taking up employment outside India.
*For carrying on outside India a business or vocation.
*For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.
* For taking up employment in India.
* For carrying on in India a business or vocation in India.
* For any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period.
* Any person or body corporate registered or incorporated in India.
* An office, branch or agency in India owned or controlled by a person resident outside India.
* An office, branch or agency outside India owned or controlled by a person resident in India.
ما هو تعريف "النسبي المقرب"؟
The following are considered to be close relatives:
1. Members of HUF (Hindu Undivided family)
2. Husband & Wife.
3. Father (Provided that the term "Father" includes step-father)
4. Mother (Provided that the term "Mother" includes the step-mother)
5. Son (Provided that the term "Son" includes the step-son)
8. Daughter's husband.
9. Brother (Provided that the term "Brother" includes the step-brother)
10. Sister (Provided that the term "Sister" includes the step-sister)
Are there any exceptions to the travel entitlement (limit) restrictions?
For Travelers proceeding to Iraq or Libya exchange in the form of currency notes may be sold up to limit not exceeding US$ 5,000 or its equivalent per resident individual in a financial year (total USD 2,50,000) For Travelers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States, entire exchange (USD 2,50,000) can be released in the form of currency notes. Travelers proceeding to Pakistan, Bangladesh or Myanmar by land route are eligible up to limit of US$ 2,50,000 or its equivalent per resident individual in a calendar year. For Airline staff, open ticket may be accepted. Proof of Airline staff will be required by the bank.
What is your cancellation policy ?
No obligation orders and can be canceled any time without penalty. The following cancellation policy applies only to our fixed rate transactions where you are required to make an advance payment to BookMyForex. These orders, if not utilized within 3 working days, will automatically be canceled and the entire advance payment made to BookMyForex will be forfeited. Fixed rates are only valid for 3 working days including booking date, after which the order is automatically canceled.
What are the different RBI schemes under which one can buy/ remit forex?
Leisure Travel/ Personal Visit.
This scheme covers travel for vacation, meeting family/ friends etc.
This scheme allows you to buy forex for.
* International business travel sponsored by firms/companies/organization in India.
* Participation in International conferences/ seminars which are of a scientific, technical or educational nature.
* Specialized training/study tour sponsored by institutions or undertaken by professionals like Doctors.
This scheme allows you to buy/ remit forex for permanent relocation overseas.
This scheme allows you to buy/ remit forex for tuition fees, boarding, maintenance expenses, books etc.
This scheme allows you to buy/ remit forex for:
* Resident Indian going abroad for Medical Treatment/Check Up.
* Resident Indian fallen sick after proceeding abroad.
* Attendant accompanying patient.
Maintenance of a Close Relative Abroad.
This scheme allows you to buy/ remit forex to support a close relative staying abroad.
This scheme allows you to buy/ remit forex to purchase property abroad.
This scheme allows you to buy/ remit forex to open a brokerage/ bank account abroad to invest in foreign equities or other financial instruments traded abroad.
This scheme allows you to buy/ remit forex to send a gift abroad or make a donation to an organization abroad.
This scheme allows you to transfer money from your Indian bank account to a foreign bank account that is in your name.
Product Descriptions.
Prepaid travel cards are Visa/ Mastercard cards issued by Axis Bank/HDFC / ICICI Bank, etc. are accepted at most ATMs and stores/ hotels etc. abroad. البطاقات المدفوعة مسبقا هي الأكثر الموصى بها وأسلم طريقة لتحمل العملة. You can now get multi-currency card as well, where you can carry more than one currency for your multiple location travel to avoid carrying multiple cards.
Cash currency. Large amount of currency is unsafe to carry but small amounts of currency notes should be carried for incidental expenses.
Traveler’s cheques (TCs), are safer than currency but are not accepted at most establishments now. Prepaid Travel cards are a much more recommended method of carrying currency than TCs.
Demand drafts are issued in the foreign currency desired for the purposes of remitting (sending) money abroad. Demand drafts can be carried or mailed to the beneficiary.
Wire transfers are used to remit (send) money directly from an Indian bank account (of the customer) to the foreign bank account (of the beneficiary).
What exactly is meant by business travel?
Foreign travel on account any of the following will be treated as business travel:
International business travel sponsored by firms / companies / organization in India.
Participation in International conferences / seminars which are of a scientific, technical or educational nature.
Specialized training / study tour sponsored by institutions or undertaken by professionals like Doctors.
What is the foreign exchange entitlement (limit) for education/ studies overseas?
US$ 2,50,000 per annum (If not consumed any part of it in any other purpose stated under LRS) towards tuition fees, maintenance expenses books, etc.
Can I take foreign exchange against studies abroad in shape of pre-paid cards or travelers cheques?
Yes, forex for studies abroad can be taken in all forms except cash currency where the limit of USD 3000 applies. Pre-paid cards can be re-loaded by students’ parents / guardians at any time (In Workings hours and Working days). ومع ذلك، لا يمكن اتخاذ المساهمين الأساسيين إلا عندما يكون الطالب حاضرا فعليا في الهند للمعاملة.
What is the foreign exchange (limit) in cases of overseas medical treatment?
Up to US$ 250,000 its equivalent for the patient going abroad for medical treatment or checkup abroad. Upto US$ 25,000 for accompanying as attendant to a patient going abroad for medical treatment/checkup within overall limit of USD 250,000.
In case I am going abroad for medical treatment / check-up accompanied by an attendant, is that person also entitled to foreign exchange under the oversea medical treatment scheme?
Yes the attendant is entitled to cumulatively USD 2,50,000.
What is the foreign exchange entitlement (limit) for overseas employment?
A person going abroad for employment can draw foreign exchange up to USD 2,50,000 per financial year from any Authorized Dealer in India on the basis of self-declaration in Form A2 and ‘Application cum declaration for purchase of foreign exchange under LRS of USD 250,000’. This limit has been subsumed under the RBI's Liberalized Remittance Scheme. If an individual remits any amount under the Liberalized Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 2,50,000 by the amount so remitted.
Can I send a gift / donation overseas? If yes, what are the forex limits?
Gifts up to USD 2000 per financial year can be sent on the basis of self-declaration, Gifts / Donations can also be sent under Liberalized Remittance Scheme (LRS) upto USD 2,50,000, The facility will be per financial year basis (April-March). For any current or capital account transactions or a combination of both. Investment by resident, individual in overseas companies would be sub-summed under the Scheme of USD 2,50,000.
What is the foreign exchange entitlement (limit) under the emigration scheme?
Up to US$ 250,000 per person. If an individual remits any amount under the Liberalized Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 by the amount so remitted.
كم من العملات الأجنبية يمكن جلبها إلى الهند من قبل أجنبي أو غير مقيم الهندي؟
لا حد على كمية من العملات الأجنبية التي يمكن جلبها إلى الهند. However, currency notes beyond USD 5000 (equivalent) and upto USD 10000 (total) need to be reported at customs and currency declaration form (CDF) obtained CDF is required whenever currency / forex surrender exceeds respective limits.
Are Resident Indians allowed to invest in overseas stocks and shares, property? If yes, what are the limits?
Under the Liberalized Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 200,000 per financial year (April March) for any permissible current or capital account transaction or a combination of both that include investment in overseas stocks, shares and property. وبموجب هذا البرنامج، يمكن للأفراد المقيمين حيازة ممتلكات غير منقولة أو أسهم أو أدوات دين أو أي أصول أخرى خارج الهند، دون الحصول على موافقة مسبقة من المصرف الاحتياطي. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under the Scheme.
However following items are prohibited under the Scheme.
i) Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000;
ii) Remittance from India for margins or margin calls to overseas exchanges / overseas counter-party.
iii) Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
iv) Remittance for trading in foreign exchange abroad.
v) Remittance by a resident individual for setting up a company abroad.
vi) Remittances directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan.
vii) Remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as non co-operative countries and territories, from time to time.
viii) Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
Can a Resident Indian maintain a foreign currency account in India?
Persons resident in India are permitted to maintain foreign currency accounts in India under the following three Schemes:
حسابات صرف العملات الأجنبية للعمالء: يمكن لجميع فئات المقيمين في العملات الأجنبية أن تسدد ما يصل إلى 100 في المائة من حصائلها من العملات الأجنبية، على النحو المحدد في الفقرة 1 (ألف) من الجدول الزمني للإشعار رقم فيما 10/2000-رب، مايو 2000 كما تم تعديلها من وقت لآخر، لحساب إيفك مع تاجر معتمد في الهند. Funds held in EEFC account can be utilized for all permissible current account transactions and also for approved capital account transactions as specified by the extant Rules/Regulations/ Notifications/ Directives issued by the Government/RBI from time to time. The account is maintained in the form of a non-interest bearing current account.
Resident Foreign Currency Accounts A person resident in India may open, hold and maintain with an Authorized Dealer in India a Resident Foreign Currency (RFC) Account to keep their foreign currency assets which were held outside India at the time of return can be credited to such accounts. The foreign exchange received as (i) pension of any other superannuation or other monetary benefits from the employer outside India; (ii) received or acquired as gift or inheritance from a person referred to sub-section (4) of section 6 of FEMA, 1999 or (iii) referred to in clause (c) of section 9 of the Act or acquired as gift or inheritance there from or (iv) received as the proceeds of life insurance policy claims/maturity/ surrender values settled in foreign currency from an insurance company in India permitted to undertake life insurance business by the Insurance Regulatory and Development Authority; may also be credited to this account. RFC account can be maintained in the form of current or savings or term deposit accounts. The funds in RFC account are free from all restrictions regarding utilization of foreign currency balances including any restriction on investment outside India.
Resident Foreign Currency (Domestic) Account: A resident Individual may open, hold and maintain with an Authorized Dealer in India, a Resident Foreign Currency (Domestic) Account, out of foreign exchange acquired in the form of currency notes, Bank notes and travelers cheques, from any of the sources like, payment for services rendered abroad, as honorarium, gift, services rendered or in settlement of any lawful obligation from any person not resident in India. The account may also be credited with/opened out of foreign exchange earned abroad like proceeds of export of goods and/or services, royalty, honorarium, etc., and/or gifts received from close relatives (as defined in the Companies Act) and repatriated to India through normal banking channels. The account shall be maintained in the form of Current Account and shall not bear any interest. There is no ceiling on the balances in the account. The account may be debited for payments made towards permissible current and capital account transactions.
Can a Resident Indian hold foreign exchange saved from his / her previous trip and use it for subsequent travel? If yes, is there any limit to that forex holding?
The traveler returning bank to India can utilize Exchange so brought back for his subsequent visit abroad during the period specified above. However, a returning traveler is also permitted to retain with him, foreign currency travelers cheques and currency notes up to an aggregate amount of USD 2000 and foreign coins without any ceiling. The traveler can utilize foreign exchange so retained, for his subsequent visit abroad.
Are there any specific categories of travel requiring RBI / Govt of India approvals?
Dance troupes, artistes, etc., who wish to undertake cultural tours abroad, should obtain prior approval from the Ministry of Human Resources Development (Department of Education and Culture), Government of India, New Delhi.
Are Resident Indians allowed to remit forex for maintenance of a close relative? If yes, what are the limits?
Residents Indians are allowed to remit up to USD 2,50,000 per annum. If an individual remits any amount under the Liberalized Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 by the amount so remitted.
What documents do I need for personal / leisure travel?
Original and valid passport.
Valid visa for the country of travel (except where VISA on arrival applies)
Confirmed ticket-showing travel within 60 days of taking foreign exchange.
PAN (Form 60/61 in case PAN missing)
ما هي الوثائق التي أحتاجها للسفر إلى رجال الأعمال؟
Original and valid passport Valid visa for the country of travel (except where VISA on arrival applies) Confirmed ticket-showing travel within 60 days of taking foreign exchange PAN copy for all forex transactions in cases where total amounts exceed Rs. 25000. Form 60 / 61 in case PAN not available Apart from this KYC of sponsoring company would be required as per RBI guidelines Aadhar Card.
What documents do I need for overseas studies / education abroad?
Confirmed one-way Air ticket Original Passport along with the Student Visa Prospectus/Offer Letter/Admission Letter in original, thereof giving full details of the course of study, tuition fees payable etc. In case of person traveling to USA Form I-20 is required. PAN copy for all forex transactions in cases where total amounts exceed INR 25000. Form 60 / 61 in case PAN not available Above documents not required for application fees, only need copy of related page of brochure etc.
Above documents not required for application fees, only need copy of related page of brochure etc. Aadhar Card.
What documents do I need for travel on account of medical treatment abroad?
Original and valid passport Valid visa for the country of travel (except where VISA on arrival applies) Confirmed ticket-showing travel within 60 days of taking foreign exchange PAN copy for all forex transactions in cases where total amounts exceed INR 25000. Form 60 / 61 in case PAN not available Application / self-declaration Aadhar Card.
ما هي الوثائق التي أحتاجها للسفر بسبب الهجرة؟
Valid passport and emigration Visa One way confirmed Air Ticket PAN copy for all forex transactions in cases where total amounts exceed INR 25000. Form 60 / 61 in case PAN not available Aadhar Card.
What documents do I need for travel on account of employment abroad?
Valid passport and employment Visa One way confirmed Air Ticket PAN copy for all forex transactions in cases where total amounts exceed INR 25000. Form 60 / 61 in case PAN not available Aadhar Card.
What documents do I need on account of sending a remittance towards gift / donations abroad?
Only self-declaration if amounts restricted to USD 5000. Beyond that amount Liberalized Scheme Application Identity Proof Govt. issued valid ID with photo & عنوان. Eg: Passport, Driving License, Voters ID Related documents Bank statement for one year / IT returns etc as mentioned above PAN copy for all forex transactions in cases where total amounts exceed INR 25000. Form 60 / 61 in case PAN not available Banks may also insist on account relationship Aadhar Card.
What documents do I need on account of sending a remittance towards investment in real estate / stocks overseas?
Related documents and self-declaration for investment in real estate / stock Liberalized Scheme Application Identity Proof Govt. issued valid ID with photo & عنوان. Eg: Passport, Driving License, Voters ID Related documents Bank statement for one year / IT returns etc as mentioned above PAN copy for all forex transactions in cases where total amounts exceed INR 25000. Form 60 / 61 in case PAN not available Banks may also insist on account relationship Aadhar Card.
ما هي الوثائق التي أحتاج إليها بسبب إرسال تحويلات نحو صيانة قريبتي المقربة في الخارج؟
Self-Declaration regarding relation with the beneficiary. Identity Proof Govt. issued valid ID with photo & عنوان. Eg: Passport, Driving License, Voters ID PAN copy for all forex transactions in cases where total amounts exceed INR 25000. Form 60 / 61 in case PAN not available Aadhar Card.
What documents do I need when surrendering / selling currency to Banks?
Upto USD 200: any ID / many Banks completely waive this requirement.
More than USD 200: Passport and Visa will also be required in cases of NREs / Foreign Visitors.
Currency Declaration form if the amount in cash exceed USD 5000 and / or when total currency surrender exceeds USD 10000.
For how long are prepaid cards valid?
Prepaid Cards have a validity of 5 years from the date of purchase.
Do I have to pay any advance amount to guarantee the rate applied to my order?
Fixed rate buy and remit orders require an advance payment of 2% to guarantee the rate. On the last step, you will be required to make this payment through our secured payment gateway using credit/ debit cards or netbanking.
How much is the GST/SGST on Foreign Currency Conversion?
As stipulated by the Government of India, any conversion from one currency to another - sale, encashment & remittance will be charged a GST/SGST on the gross amount of currency exchanged as per the following slabs: - 0.18% of the gross amount of currency exchanged for an amount upto Rs 100,000, subject to the minimum amount of Rs 45 - Rs 180 and 0.09% of the gross amount of currency exchanged for an amount of rupees exceeding Rs 100,000 and upto Rs 10,00,000 - Rs 990 and 0.018 % of the gross amount of currency exchanged for an amount of rupees exceeding Rs 10,00,000, subject to a maximum of Rs.10,800/-
Are there any additional (hidden) charges on forex cards?
BookMyForex has special arrangements, as a result of which, we`re able to completely waive off card issuance/ loading/ reloading and unloading charges. Additionally, forex cards purchased through BookMyForex come with 3 free ATM withdrawals (WITHDRAWAL CHARGES CREDITS BACK TO CARD WITHIN APPROX 30 WORKING DAYS). Swiping at any merchant/ store internationally is always free of charge.
Which bank's forex card does BookMyForex provide?
We provide Single Currency as well as Multi-Currency forex cards of either Axis Bank/ HDFC bank or ICICI bank. Most cards are powered by Visa while some are powered by MasterCard.
Why are rates different for different products?
Rates of certain products such as currency notes and traveler`s cheques are heavily dependent on demand and supply in the local market. While other products such as forex cards, wire transfers are demand drafts do not have a physical footprint and therefore they are not dependent on demand and supply in the local market. The demand for foreign currency in India generally exceeds the supply and as a result foreign currency notes and traveler`s cheques are often available at much worse rates than alternatives such as forex cards. At times these products are not available at all. Apart from this, the rates of different products vary since our channel partners provide us with different rate for different products.
Is this possible to transfer funds from forex card to overseas bank account?
No, transfer from forex card to account is not possible.
How can I be assured that my card is activated?
Once your card is activated, you will receive a message and mail to your registered contact number and Mail ID. You can visit the nearest ATM of the bank (of which card you have received) in India and simply can do balance Inquiry.

Forex Rbi Faqs.
المصالح ذات الصلة.
التقييم والإحصاءات.
خيارات المشاركة.
إجراءات المستند.
Pages 4 to 56 are not shown in this preview.
Pages 60 to 62 are not shown in this preview.
Pages 66 to 116 are not shown in this preview.
المستندات الموصى بها.
Documents Similar To Forex Rbi Faqs.
وثائق حول التحوط (المالية)
More From Abhishek Pubbisetty.
تذييل القائمة.
القانونية.
وسائل الاعلام الاجتماعية.
كوبيرايت & كوبي؛ 2018 سكريبد Inc. تصفح الكتب. موقع الجوال . دليل الموقع. لغة الموقع:
هل أنت واثق؟
قد لا يكون من الممكن التراجع عن هذا الإجراء. هل تريد بالتأكيد المتابعة؟
هل تريد بالتأكيد حذف هذه القائمة؟
كما سيتم إزالة كل ما حددته من القوائم.
ستتم إزالة هذا الكتاب أيضا من جميع القوائم.
لقد قمنا بتنسيق العناوين التي نعتقد أنك ستحبها.