A.P. (DIR Series) (2003-2004) Circular No. 21, Dated
23-9-2003,
Issued by Exchange Control Department, RBI
Attention of
Authorised Dealers is invited to Regulations 4 and 5A of Notification No.FEMA
10/2000-RB dated May 3, 2000, as amended from time to time, in terms of which a
person resident in India may hold, open and maintain with an Authorised Dealer
in India, Exchange Earner’s Foreign Currency (EEFC) Account and Resident
Foreign Currency (Domestic) [RFC(D)] Account, respectively, subject to the
conditions stipulated therein.
2. Reserve Bank has been receiving requests
from the account holders seeking clarification whether the balances in the EEFC
and RFC(D) Accounts mentioned above could be credited to their Non-Resident
(External) Rupee Accounts (NRE) and/or Foreign Currency Non-Resident (Bank)
Accounts (FCNR-B) consequent upon change of the residential status of the
account holder from resident to non-resident. The matter has been examined and
it is clarified that the balances in the EEFC and RFC(D) Accounts may be
allowed to be credited to NRE/FCNR-B Account, at the option/request of the
account holders consequent upon change of their residential status from
resident to non-resident.
3. Authorised Dealers may bring the
contents of this circular to the notice of their constituents concerned.
4. 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).