A.P. (DIR Series) (2000-2001) Circular No. 16, dated 10-10-2000
Attention
of authorised dealers is invited to paragraph 2(ii) of the A.P. (DIR Series)
Circular No. 6, dated 14th August, 2000 advising that 100% Export Oriented
Units or a unit in (a) Export Processing Zone, or (b) Software Technology Park,
or (c) Electronic Hardware Technology Park may credit 35%, and any other person
resident in India may credit 25% of the eligible inward remittances to the EEFC
Account.
2. It has
now been decided that with immediate effect, 100% Export Oriented Units or a
unit in (a) Export Processing Zone, or (b) Software Technology Park, or (c)
Electronic Hardware Technology Park may credit 70%, and any other person
resident in India may credit 50% of the eligible inward remittances as
indicated in the Schedule to the Reserve Bank Notification No. FEMA 10/2000-RB,
dated 3rd May, 2000. It is clarified that this is applicable only to the
eligible inward remittances received on or after the date of this circular.
3. It is
further advised that all the EEFC accounts should be held in the form of
non-interest bearing Current Accounts only and no credit facility, whether
funded or non-funded, should be made available against the EEFC balances.
Existing credit facilities, if any, should be withdrawn on expiry of the period
for which the credit was extended.
4. All
other terms and conditions of the Scheme contained in the Schedule to the
Reserve Bank Notification No. FEMA 10/2000-RB dated 3rd May, 2000 and as
amended vide Reserve Bank’s Circular dated 14th August, 2000, referred to
above, remain unchanged.
5. Amendment
to the Bank’s Notification issued under Foreign Exchange Management Act, 1999
is being issued separately.
6. Authorised
dealers may bring the contents of this circular to the notice of their
concerned constituents.
7. 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). Any
contravention or non-observance of these directions is subject to the penalties
prescribed under the Act.