ap (dir series) (2003-04) circular no. 77, dated 13-3-2004
Attention of Authorised Dealers (ADs) is invited to
A.P.(DIR Series) Circular No. 76 dated February 3, 2003, in terms of which they
are required to submit R-Return (NOSTRO) and R-Return (VOSTRO) in hard copy
together with transaction details in (FET-ERS - Version 5.0) in floppy.
2. The R-Return formats have
been updated and enclosed as Annexures I (NOSTRO) and IA (VOSTRO). Authorised
Dealers may please note the changes involving the deletion of Item Nos. I-H
& II-H - Notional sale & Notional purchase and Item No. V - Aggregate
Balance in R-Return (NOSTRO). They may also note that on
crystallisation/cancellation of Export Bills Purchased/Negotiated/Discounted,
the transaction has to be included under Item IC (i)/(ii). The
list of revised purpose codes for purchase, sale transactions and also a list
of purpose codes to be used for filling up the cover page of R-Return are
enclosed as Annexures II, III & IV.
3. It has also been decided
to simplify the procedures and documentation formalities in respect of
non-import remittances. Accordingly, in consultation with FEDAI, the A-2 form
has been modified to incorporate the application form and the declaration in
terms of section 10(5) of FEMA, 1999 and the specimen form is enclosed as
Annexure V. The customer will be required to submit only this form in respect
of permissible transactions pertaining to individuals up to a limit of USD 5000
as per our AP DIR Circular No. 55, dated 23 Dec., 2003. The AD will fill up the
reverse of the form which contains purpose-wise codes. For undertaking
transactions under the Liberalised Remittance Scheme of USD 25000 for resident
individuals, ADs may be guided by the instructions conveyed in our AP DIR No.
64 dated February 4, 2004. As regards other transactions, apart from Form A2 as
at Annexure V, the AD may call for additional information and documents as may
be required. In respect of regular corporate customers, the bank may like to
obtain one-time declaration under FEMA as per the proforma given in Annexure
VI. The objective behind these steps is to extend hassle-free service to all
customers.
4. Authorised Dealers are
required to submit R-Return (NOSTRO) and R-Return (VOSTRO) as per the updated
formats in hard copy along with FET-ERS floppy on fortnightly basis with effect
from April 1, 2004.
5. The officials of the
Authorised Dealers have been imparted training by the Reserve Bank on the new
FET-ERS (Version 6.1) package, which has been revised comprehensively
incorporating new purpose codes for various foreign exchange transactions. The
package containing the new version will be made available/distributed to all
ADs by the Bank shortly. Authorised Dealers may please arrange for training the
officials of the remaining branches so that the foreign exchange transactions
may be reported with new purpose codes through the revised FET-ERS (Version
6.1) from April 1, 2004.
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).