Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals

 

AP (DIR Series) (2002-2003) Circular No. 53, dated 23-11-2002

Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals

Attention of authorised dealers is invited to AP (DIR Series) Circular No. 37 dated November 1, 2002 in terms of which, pending publication of the Notification by the Government, they are required to forward the request received by them for opening of Resident Foreign Currency (Domestic) Accounts to Regional Office of the Reserve Bank with their recommendations.

 

2.         Reserve Bank has issued Notification No. FEMA74/2002-RB dated November 1, 2002 (copy enclosed) amending its Notification No. FEMA10/2000-RB dated May 3, 2000 allowing a person resident in India to open, hold and maintain with an authorised dealer in India a foreign currency account to be known as Resident Foreign Currency (Domestic) Account out of foreign exchange acquired in the form of currency notes, bank notes and travellers cheques.

 

3.         Accordingly, it will be in order for authorised dealers to open, hold and maintain such account for a person resident in India subject to compliance with the terms and conditions stipulated in the Notification and AP (DIR Series) Circular No. 37 referred to above.

 

4.         Necessary amendments may be carried out in Notification No. FEMA10/ 2000-RB dated May 3, 2000 as indicated in Notification No. FEMA74/2002-RB dated November 1, 2002.

 

5.         Authorised dealers may bring the contents of the circular to the notice of their constituents concerned.

 

6.         The directions contained in this circular have been issued under section 10(4) and section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).