section a rupee account of non residential indians other than banks

8/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks

1/32

ForeWordVolume 1 Volume 2 Volume 3 Volume 4 Volume 5 Volume 6

CHAPTER 2

Foreign Exchange !era"ion#

R$PEE ACC$%T& F %%'RE&()E%T& THER THA% *A%+&

&ECT(% A

Re#iden"ial &"a"u#,

In terms of Section 2 (v) of FEMA 1999 "a Person resident in India means"

a person residing in India for more than one hundred and eight t!o das during the

course of the preceding financia ear #ut doe# no" include'

-A.a person !ho has gone out of India or !ho stas outside India$ in either case%

a.for ta&ing up empoment outside India$ or

/.for carring on a #usiness or vocation outside India$ or other purpose$ in such

circumstances as !oud indicate his intention to sta outside India for an uncertain

period'

-*.a person !ho has come to or sta in India$ in either case$ other!ise than%

a0for or on ta&ing up empoment in India$ or

/0for carring on a #usiness or vocation in India$ or

c0for an other purpose$ in such circumstances as !oud indicate his intention to sta

in India for an uncertain period'

ian person or #od corporate registered or incorporated in India

iian office$ #ranch or agenc in India o!ned or controed # a person resident

outside India

iiian office$ #ranch or agenc outside India o!ned or controed # a person resident

in India

)EF(%(T(% F %R(

In terms of Section 2 (!) of FEMA Per#on re#iden" ou"#ide (ndiameans a

person !ho is not resident in India Person incudes an individua$ a indu undivided

fami$ a compan$ a firm$ an association of persons or a #od of individuas !hether

incorporated or not
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2/32

10An Indian *iti+en !ho stas a#road for empoment,carring on #usiness or

vocation outside India or stas a#road under circumstances indicating an intention for

an uncertain duration of sta a#road is a non%resident Persons going a#road forstudies are treated as -on%.esident Indians (-.Is) and are eigi#e for a the faciities

avaia#e to -.Is Educationa and other oans avaied of # them as residents in India

!i continue to #e avaia#e as per FEMA reguations

1010Persons posted in /-0rganisations and officias deputed a#road #

*entra,State overnment and Pu#ic Sector underta&ings on temporar assignments

are aso treated as non%residents

1020-on%resident foreign citi+ens of Indian 0rigin are treated on par !ith non%

resident Indian for opening and maintaining accounts and for ma&ing investment

Per#on o (ndian riginmeans a citi+en of an countr other than angadesh or

Pa&istan$ if

a.he at an time hed Indian passport'

or

/.he or either of his parents or an of his grand% parents !as a citi+en of India #

virtue of the *onstitution of India or the *iti+enship Act$ 1933 (34 of 1933)'

or

c.the person is a spouse of an Indian citi+en or a person referred to in su#%cause ( a )

or (#)'

10300verseas *orporate odies (0*s) have #een derecogni+ed as an eigi#e 5cass

of investor6 under various routes,schemes avaia#e under e7tant Foreign E7change

Management .eguations

1040In case of dou#ts,carifications regarding the -.I status of individuas

approaching #ranches to open accounts$ #ranches shoud ta&e up !ith 8 A Section$

Foreign E7change 8epartment$ *entra 0ffice Further$ FA: on various entitements of-.I,PI0 pu#ished in the !e#site of the .eserve an& is aso made avaia#e in the

home page of our ;.EAS/.< (F0.EI-) and #ranches ma refer to the same

ACC$%T& F CERTA(% %%'RE&()E%T& TREATE) A& RE&()E%T ACC$%T&=

20Athough the under noted categories of persons$ firms$ companies$ etc$ are treated


3/32

as resident outside India under FEMA$ their rupee accounts !ith A8s in India are

regarded as resident accounts and hence #ranches ma open such accounts and ao!

free operation of accounts$ provided the re>uirements under FEMA 1999 are compied

!ith

-i.Indians$ -epaese or hutanese resident in -epa or hutan

-ii.0ffices and #ranches situated in -epa or hutan of an #usiness carried on # a

compan or a *orporation incorporated or esta#ished under an ?a! in force in India$

-epa or hutan

-iii.0ffices and #ranches in -epa or hutan of an #usiness carried on as a

partnership firm or other!ise # Indians$ -epaese or hutanese

30For opening accounts in the names of Pa&istani and angadesh nationas$ #ranches

shoud o#tain prior approva of .eserve an& of India and the approva detais shoud

#e recorded in the reative account opening forms and ?edger,.egister foios, sstem

records

40A the Indian #ranches of our an& can open and maintain the foo!ing categories

of .upee Accounts in the names of -on%.esident Indians (-.Is) and Person of Indian

0rigin

i.0rdinar -on%.esident .upee Accounts (-.0 Accounts)

ii.-on%.esident (E7terna) .upee Accounts (-.E Accounts)

A comparative chart containing the saient features and conditions governing

credit,de#it transactions of the a#ove four tpes of accounts are furnished as

Anne7ure%I efore opening accounts under these schemes$ #ranches shoud ensure

that the appicants satisf the criteria aid do!n for the residentia status under FEMA

1999

50ranches shoud #e guided # instructions contained in the foo!ing !hie opening

and ao!ing operations in non%resident rupee accounts=

i)Foreign E7change Management (8eposit) .eguations$ 2@@@ issued under FEMA

1999 and -otification -o FEMA 3 ,2@@@%. dated rd Ma 2@@@

ii) Master circuars and AP (8I.) *ircuars issued # .eserve an& of India

iii) *ircuars issued # *entra 0ffice
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4/32

(.eguations governing maintenance of and operations on non%resident rupee accounts

# authorised *o%operative,*ommercia #an&s have #een given separate # .eserve

an& of India in Memorandum AM)

60PE%(% F ACC$%T& (% THE %AE& F %R(#=

6010An -on%.esident of Indian 0rigin or -ationait !ho desires to open account

!ith the #ranch$ ma send the prescri#ed appication du competed and signed %

verified # his,her an&,Indian Em#ass,-otar Pu#ic,our an&6s Account hoder

aong !ith remittance to the #ranch

6020Aternative$ photocopies of passport giving passport num#er$ signature$

photographs and date of issue,e7pir date of passport ma #e sent # the prospective

account hoder

6030ranches are permitted to open -.E accounts for Indians #efore proceeding

a#road !ith +ero #aance in the account after verifing Passport$ Bisa and Air tic&et for

the Courne and give them the Account -um#er

6040ranches opening rupee accounts in the names of minors$ Coint accounts shoud

ensure o#servance of the usua precautions for opening of accounts$ issue of pass

#oo&,statement of accounts$ issue and despatch of che>ue #oo&s$ operation of

accounts$ standing instructions$ etc In this connection$ attention of #ranches is invited

to *hapter 1 (on *onstituents6 Accounts % enera) of Boume I of oo& of Instructions

6050ranches shoud choose the correct tpe of non%resident account in the *S

pac&age$ for different categories of non%resident accounts opened,maintained #

them

60608etais such as names of -.Is$ their nationait$ Indian contact address$overseas address$ passport particuars$ name and address of the introducer,identifing

overseas #an&,#ranch$ operationa,pament instructions i&e E or S$ F or S$ A or S$

nominations etc$ shoud #e recorded in the account master in *S pac&ages

authenticated proper # the authorised officia


5/32

607ranch shoud send the deposit receipt through registered post to the -.I

depositor at the address given in the appication,account opening form ;he deposit

receipt shoud not #e handed over to agents,middemen,third parties ;he #ranch

shoud ensure that compete posta address of the -.I depositor has #een furnished inthe account opening form and shoud e7ercise specia care$ if the address is

incompete or on post #o7 num#er has #een furnished

6080;he Account opening forms$ specimen signature cards$ shoud #e proper fied$

preserved and produced for verification # our Interna Inspectors,.eserve an& of

India Inspectors,E7terna Auditors !hen re>uired

6090In terms of Poic 8ocument on Duests for

foreign out!ard remittances shoud #e prompt attended to # #ranches

7030 -A8 #ranches opening,maintaining accounts shoud note to hande purchase

transactions under prior report to the designated A8 #ranch For sae of foreign

e7change on account of -.I customers$ the -A8 #ranch shoud ta&e up !ith thedesignated A8 #ranch$ !hich !i arrange for reease of e7change in the form of draft$

mai transfer$ teegraphic transfer$ foreign currenc ;*s,-otes$ etc In this connection$

#ranches are advised to ensure compiance of procedura aspects contained in reevant

chapters of this voume


6/32

7040 hie handing foreign currenc notes,coins on account of -.Is$ #ranches

shoud #e guided # the genera instructions regarding purchase,encashment of

foreign currenc notes contained in *hapter on 5Foreign ;raves6 of the voume

7050 ;he purchase,sae transactions (in foreign e7change) in opening,maintaining

non%resident accounts in the names of -.Is # #oth A8 #ranches and -A8 #ranches

sha #e reported to ;.EAS/.< (F0.EI-) on # A8 #ranches$ in accordance !ith

the procedure aid do!n for such reporting (.efer *hapter 1 of this voume)

7060 ranches shoud proper record and prompt e7ecute the various

standing,specia instructions of -.Is for oca dis#ursements under advice to account

hoders hie e7ecuting the instructions of the customers$ #ranches shoud ensure

that de#its,credits made to these accounts are permitted de#its,credits under FEMA

1999

:A%& A%) VER)RAFT&

801010ranches granting oans,overdrafts to -.Is against the securit of -.0,-.E

deposits shoud ensure compiance of guideines contained in -otification -o FEMA

3,2@@@%. dated rd Ma 2@@@ read !ith su#se>uent amendments and Boume II of

oo& of Instructions as !e as circuars issued # *entra 0ffice$ regarding ma7imum

amount of oan$ interest rate$ margin$ purpose etc

801020Advances against F*-.,-.E deposit to the depositor himsef or to a third

part shoud #e granted up to a ma7imum of .s1@@@@ acs on$ on under his

specific re>uest,mandate and after verifing the authenticit of the signature of the

depositor If the -.I avaiing the oan is on a visit to India$ the oan documentation

coud #e competed at the #ranch$ !here he proposes to avai of the faciit If the -.I

see&s to avai of oan from the #ranch in India$ !hen he is a#road$ the oan document

(G@ ) shoud #e sent to the -.I a#road !ith a re>uest to e7ecute the documents at

an 0verseas ranch or at the #ranch office of the *orrespondent of our an& and

arrange to for!ard the documents aong !ith the deposit receipt (carring the undated

discharge of the depositor,s) through the overseas #ranch,office of the correspondent#an& !here the documents !ere e7ecuted A cop of the passport of -.I shoud aso

#e caed for aong !ith the appication and discharged deposit receipt

801030;he covering etter of the overseas #ranch,*orrespondent #an& for!arding the

documents shoud confirm that the depositor had caed on them and e7ecuted the


7/32

documents in their presence 0n receipt of documents$ #ranch can affi7 and effective

cance the revenue stamp on the reverse of deposit receipt !here the undated

discharge of the depositor,s appears and proceed to grant the oan ;he proceeds of

oans so granted coud #e credited to the -.0 account on of the -.I avaiing theoan /nder no circumstances$ the oan proceeds shoud #e credited to -.E,F*-.

accounts of -.Is or repatriated a#road

802010ranches have to propose to their .egiona 0ffice for sanction of oan against

-.E deposits to third parties

802020ranches shoud not grant advances to third parties against -.E,F*-.

deposits on the #asis of Po!er of Attorne

802030In case of an oan , overdraft avaied # a resident and !ho su#se>uent

#ecame a person resident outside India$ in terms of .eserve an& guideines under

FEMA 1999$ it is eft to the discretion and commercia Cudgement of the authorised

deaer , #ranch to ao! continuance of such faciities In such cases$ pament of

interest and repament of oan ma #e made # in!ard remittance or out of egitimate

resources in India of the person concerned As per .eserve an& guideines$

authorised deaers at their discretion , commercia Cudgement$ are permitted to ao!

overdra!ing in -.E S account for a period not more than t!o !ee&s$ up to a imit of

.s3@$@@@ su#Cect to the condition that such overdra!ing together !ith the interest

paa#e thereon are ceared,repaid !ithin the said period of t!o !ee&s$ out of in!ard

remittance through norma #an&ing channes or # transfer of funds from other

-.E,F*-. accounts o!ever$ #ranches shoud #e guided # our an&6s discretionar

po!ers for various #ranches communicated from time to time$ #efore considering such

re>uests from their -.I customers

8030ranches shoud note that the oan,overdraft faciities granted to -.Is in India

against the securit of -.0,-.E,F*-. deposits coud #e adCustedH

-a.# foreign in!ard remittance$ or

-/.from the proceeds of deposits hed as securit$ or -c.to the de#it of the -.0,-.E account of the #orro!er

hen a oan granted to a -.I against the securit of his,her -.E,F*-. deposit is

adCusted out of the rupee resources hed in -.0 account$ #ranches shoud note to

recover interest as aid do!n # *entra 0ffice in 5Interest .ate on Advances6 circuars


8/32

804At the time of sanctioning credit faciit against the -.E,F*-. deposits$ #ranch

shoud necessari o#tain instructions from the depositor$ !e #efore the due date$ foradCustment,ro over of the faciit on the due date ranch shoud send deposit

maturit notice aong !ith detais of the faciit outstanding and the instructions

aread in pace If an change in instructions is given # the depositor$ #ranch shoud

ta&e note of the same As an interest rate movement,e7change rate movement !i

resut in compaints from customers$ #ranches shoud ta&e ade>uate care on this issue

90*:C+E) ACC$%T&

9010;he .eserve an& of India has po!ers to 5#oc&6 accounts in India of an person$

!hether an individua$ firm or compan resident outside India and to direct that

pament of an sums due to that person sha #e made to such #oc&ed account A

#oc&ed account means an account opened as a #oc&ed account at an #ranch or

office in India of a #an& authorised in this #ehaf # .eserve an& of India -o #oc&ed

account ma #e opened # a #ranch or an e7isting 5free6 account #oc&ed$ e7cept

under directions of .eserve an& of India -o #oc&ed account shoud #e un #oc&ed #

a #ranch e7cept under specific direction from .eserve an& of India

9020 ;he .eserve an& of India !i issue specia directions regarding operations on

individua #oc&ed accounts at the time of authorising opening of such #oc&ed

accounts

9030Su#mission of S;A; 2 return to the .eserve an& for #oc&ed accounts has #een

dispensed !ith

Annexure#,

( *omparative chart sho!ing the saient features of -.0 and -.E deposit schemes

(( Account 0pening Form for -.E Account

A%%E;$RE (

R$PEE ACC$%T F %%'RE&()E%T& THER THA% *A%+&

NON-RESIDENT (ORDINARY) NRO%%'RE&()E%T -E;TER%A:. < %RE


9/32

10WH CA% PE%,

An person resident outside India

(other than a person resident in -epa

and hutan) (0pening of accounts of

individuas , entities of Pa&istan ,

angadesh nationait , o!nership as

!e as erst!hie 0*s re>uire prior

approva of .eserve an& of India)

-on%.esident individuas of Indian

-ationait or origin (0pening of -.E

accounts in the names of Pa&istani ,

angadeshi individuas , entities re>uire

prior approva of .eserve an& of India)

20 &$RCE F F$%)& ,

Proceeds of remittances received in

an permitted currenc from a#road or

an permitted currenc tendered #

the account hoder during his

temporar visit to India or transfers

from rupee accounts of -on%.esident

an&s

?egitimate dues in rupees of account

hoder in India

;ransfer from -.E,F*-. accounts

8esignating e7isting account as -.0$

of a person proceeding a#road (otherthan -epa or hutan) !hich !oud

give him the status of a -.I

.emittances received from a#road in an

approved manner in free converti#e

currenc$ ;ransfer from -.E,F*-.

accounts

Accounts ma #e opened in the name of

an eigi#e -.I during his temporar visit

to India against tender of foreign currenc$

;*s issued in his o!n name or notes and

coins tendered provided the #ranch is

satisfied that the status of the person

continues to #e a non%resident

ranches shoud ensure that ;*s andcurrenc notes tendered # the account

hoder have in fact #een #rought # him

from a#road and not ac>uired oca

;ransfers from -.0 account to -.E account

are permitted subject to the ceiling of USD 1

millionalready available for repatriation from

NRO accounts

30 T=PE F )EP&(T,

S$ *8$ ;erm 8eposit S$ *8$ ;erm 8eposit

40 : C)E ,

Same as ordinar deposit

S -.E 1@1

*8 -.E 13@1

-.E ;8 (S) 11@1


10/32

;8 -.E (?) 1131

50 PER() F )EP&(T ,

;8 % 13 das to 12@ months

;8 12 months to ess than G@ months

60 (%TERE&T ,

S ;8As appica#e to domestic

deposits

S % 3 pa

;8%ASE8 0- ?I0.

8epending on period of deposit

(For current rates refer circuar issued #

*entra 0ffice) -o additiona interest is

paa#e on deposit accounts of staff

mem#ers

70 >(%T ACC$%T ,

Ao!ed !ith resident

% Joint -.E accounts in the names of t!o or

more non%resident individuas is permitted

provided a the account hoders are

persons of Indian -ationait or 0rigin If

the spouse of an -.I is a foreign nationa$

the status of such a person !i #e that of a

Person of Indian 0rigin o!ever$ such

persons are permitted to have on Coint

#an& accounts aong !ith the spouse

.esidents can aso #e Coint account hodersin -.E accountson a former or survivor

basis

80 REPATR(AT(% ,

-ot repatria#e e7cept for the foo!ing

in the account 1) *urrent income

2) /p to /S8 1 miion per financia

ear for an #onafide purpose out of

the #aances in -.0 account,sae

proceeds of assets in India ac>uired #!a of inheritance, egac incusive of

assets ac>uired out of settement

su#Cect to certain conditions

Free repatria#e

90 %(%AT(% ,

-ominee can #e a person resident in -ominee can #e a person resident in India


11/32

India or a person resident outside

India In the case of -on%resident

nominee$ the amount entited to him

from the account(s),deposit(s) of a

deceased person !i #e credited to his

-.0 account and the repatriation !i

#e su#Cect to the overa ceiing of /S8

1 miion per financia ear$ su#Cect to

ta7es

or a person resident outside India In the

case of -on%resident nominee$ authorised

deaers are ao!ed to remit funds ing in

the account of the deceased account

hoder

1?0 TA; ,

;a7 at the rate of @ on the interest

income is to #e deducted at source and

remitted to overnment If the -on%

.esident is from an of the countries

!ith !hom 8ou#e ;a7ation Avoidance

Agreement is entered into$ the

appica#e rate !i #e deducted

Income from interest on monies standing

to the credit of -.E accounts is e7empt

from Income ;a7 aances hed in the

accounts are e7empt from eath ;a7 ifts

made to cose reatives in India from out of

#aances in such accounts are aso free

from ift ;a7 (;hese ;a7 e7emptions are

avaia#e on in respect of -.E accounts

maintained # -.Is and an fresh directive

issued !i prevai)

110 PREAT$RE C:&$RE ,

If the deposit is up to .s 3 a&hs$

appica#e interest for the period runprevaiing on the date of deposit is

paa#e !ithout forecosure charges

1 ess than the rate appica#e for

the period the deposit has run

prevaiing on the date of deposit$

additiona interest for #u& deposits of

.s13 a&hs and a#ove$ is not paa#e

on forecosure

In case of an overdue deposit rene!ed!ith overdue interest$ is cosed

premature #efore competing the

minimum period for !hich such

deposits are accepted from the date of

rene!a$ no interest is paa#e on the

rene!ed deposit and the interest paid

1 ess than the appica#e interest for theperiod the deposit remained !ith the #an&

prevaiing on the date of deposit Additiona

interest$ if an$ paa#e on #u& deposit of

.s13 a&hs and a#ove is not paa#e

If an overdue deposit rene!ed !ith interest

pament for the overdue period$ is cosed

premature #efore competing the

minimum period for !hich such deposits

are accepted from the date of rene!a$ no

interest is paa#e on the deposit and the

interest aread paid for the overdue period

shoud aso #e recovered


12/32

for the overdue period shoud aso #e

recovered

120 RE%EWA: F )EP&(T ,

*an #e done as per .ues as appica#e

to domestic deposits

.ene!a of deposit can #e done as ongas

the depositor6s status is -.I .ene!a must

#e made !ithin 1K das from the due date

to get retrospective effect and must #e

rene!ed for the minimum period

prescri#ed If the overdue period is ess

than one ear$ the interest rate for one

ear prevaiing on date of maturit or

rene!a$ !hichever is o!er$ is to #e

appied

130 CHA%E F &TAT$& ,

-.0 accounts shoud #e redesignated

as resident accounts on the return of

account hoder to India$ provided the

#ranch is satisfied that the account

hoder has returned to India for ta&ing

up empoment$ #usiness or vocation

or for an other purpose indicating his

intention to sta in India for an

uncertain period here the accounthoder is on a temporar visit to India$

the account shoud continue to #e

treated as -on%resident even during

such visits

-.E accounts shoud #e redesignated as

resident rupee accounts or as .F* accounts

(if eigi#e) at the option of account hoder

immediate upon the return of account

hoder to India provided the #ranch is

satisfied that he has returned to India for

ta&ing up empoment or for carring on a

#usiness or vocation or for an other

purpose !ith an intention of residing in

India for an uncertain period

here the account hoder is on on a short

visit to India$ the account ma continue to

#e treated as -.E account even during his

sta in this countr

In respect of funds hed in fi7ed deposits in

-.E accounts$ interest !i #e paa#e at

the rate origina fi7ed$ provided the

deposit is hed for the fu term even afterconversion into resident account

140 PERAT(%& (% THE ACC$%T

,

ranches ma ao! transactions in

-.0 accounts comping !ith

140 PERAT(%& (% THE ACC$%T ,

ranches ma ao! transactions in -.E

accounts comping !ith instructions

contained in FEMA -otification -o FEMA


13/32

instructions contained in FEMA

-otification -o FEMA 3,2@@@%. dated

rd Ma 2@@@

At the time of opening of the accounts$

the account hoders shoud give an

underta&ing that in cases of de#its to

the accounts for the purpose of

investment in India and credits

representing sae proceeds of

investments$ the !oud ensure that

such investments, disinvestments

!oud #e covered # the genera or

specia permission of .eserve an& of

IndiaCredi"#, Proceeds of remittances in

an permitted currenc from outside

India through norma #an&ing channes

or an permitted currenc tendered #

the account hoder during his

temporar visit to India or transfers

from rupee accounts of non%resident

#an&s 0ther egitimate dues in India

of the account hoder)e/i"#, A oca paments in rupees

incuding paments for investments

su#Cect to compiance !ith the reevant

reguations made # the .eserve an&

and remittance outside India of current

income in India of the account hoder

net of appica#e ta7

A resident can #e authorised # the

-.I # !a of Po!er of Attorne or

Mandate ?etter to operate the -.0

accounts ;he !ithdra!as are

restricted to oca paments on #

the mandate hoder 0perations on the

account in terms of Po!er of Attorne

is restricted to !ithdra!as for

3,2@@@%. dated rd Ma 2@@@

At the time of opening of the accounts$ the

account hoders shoud give an underta&ing

that in cases of de#its to the accounts for

the purpose of investment in India and

credits representing sae proceeds of

investments$ the !oud ensure that such

investments, disinvestments !oud #e

covered # the genera or specia

permission of .eserve an& of India

Credi"#, Proceeds of remittances in an

permitted currenc from outside India

through norma #an&ing channes or an

permitted currenc tendered # the accounthoder during his temporar visit to India or

transfers from rupee accounts of non%

resident #an&s 0ther egitimate dues in

India of the account hoder

)e/i"#, A oca paments in rupees

incuding paments for investments su#Cect

to compiance !ith the reevant reguations

made # the .eserve an& and remittance

outside India of current income in India ofthe account hoder net of appica#e ta7

A resident can #e authorised # the -.I #

!a of Po!er of Attorne or Mandate ?etter

to operate the -.E accounts ;he

!ithdra!as are restricted to oca

paments on # the mandate hoder

0perations on the account in terms of

Po!er of Attorne is restricted to

!ithdra!as for permissi#e oca paments

or remittance to the account hoder himsef

through norma #an&ing channes


14/32

permissi#e oca paments or

remittance to the account hoder

himsef through norma #an&ing

channes

&$*(&&(% F &TATEE%T&

;reasur dept !ith the assistance of I;8$ *0 has deveoped a programme to cu

out the data from the core server and the same is #eing successfu transmitted to

.eserve an& of India In vie! of the a#ove #ranches and .egiona offices need not

su#mit -.8 *S. data o!ever$ the updation !ith regard to countr codes and

transaction codes !i have to #e continued

(.ef;reasur(Foreign) Perm*ir L4 dated 19@2@1@)

A%%E;$RE ((

(%)(A% VER&EA& *A%+ACC$%T PE%(% FR

-A :ATE&T ACC$%T PE%(% FR (& AVA(:A*:E (% h""!,@@0io/0in.

A%%E;$RE (((

&ECT(% * B FRE(% C$RRE%C= ACC$%T& (% (%)(A

1ranches shoud #e guided # instructions contained in -otification -o FEMA

3,2@@@%. dated rd Ma 2@@@$ master circuars issued # .I and circuars issued

# *entra 0ffice from time to time$ !ith regard to opening and maintaining

Foreign *urrenc accounts in India

2-on .esident individuas of Indian nationait or origin (-.Is) are permitted to

maintain foreign currenc accounts,deposits in India under specia schemes -on%

resident Indians returning to India are aso permitted to open foreign currenc

accounts !ith designated #ranches under different schemes 0verseas *orporate

odies have #een de recognised as a cass of investor$ under FEMA$ !ef
http://www.iob.in/http://www.iob.in/


15/32

1G@92@@ ;he guideines reating to the foo!ing tpe of accounts are furnished

in this chapter (i) Foreign *urrenc (-on%.esident) Accounts (an&s) Scheme

F*-.()

(ii) .esident Foreign *urrenc (.F*) Accounts(iii) .esident Foreign *urrenc (8omestic) Accounts

;he guideines reating to E7change Earners Foreign *urrenc Accounts are

furnished in *hapter 1 of this voume of oo& of Instructions

ranches shoud e7tract #aances in S accounts in foreign currenc ever

month and ta !ith ? In respect of term deposits maintained in foreign

currenc$ #ranches shoud e7tract #aances ever haf%ear end and ta !ith ?

K ranches shoud ensure that correspondence from account hoders maintaining

foreign currenc accounts are proper attended to !ithout giving room for an

compaints Account 0pening forms and a correspondence reating to such

deposits must #e proper fied and &ept

FRE(% C$RRE%C= %%'RE&()E%T -*A%+&. ACC$%T& ' FC%R -*.

10/nder F*-.() Scheme$ the e7change ris& is #orne # the respective an&s

!hich maintain the accounts

20 ;he accounts are maintained in designated foreign currencies and the account

hoder is not e7posed to an e7change ris&

30 )E&(%ATE) *RA%CHE&

0n #ranches !hich are designated # *entra 0ffice to maintain F*-. ()

deposits shoud hande such deposits 0ther #ranches are not permitted to

maintain F*-. () deposits Such restriction is made to ensure prompt reporting

sstem and efficient management of funds ;he ist of authorised #ranches is

dispaed in the ;.EAS/.< (F0.EI-) intranet site

40 E:((*(:(T= ,

Individuas of Indian nationait or origin (-.Is) as defined under -.E Accounts

Scheme are eigi#e to open deposit accounts under the captioned scheme

50)E&(%ATE) C$RRE%C(E& ,

8eposits can #e opened on in the foo!ing designated currencies vi+$ /S 8oar$


16/32

Pound Stering$ E/.0$ Japanese


17/32

L;he account ma #e opened # -on%.esidents during their visits to India !ith

foreign currenc traveers che>ues in his,her o!n name or foreign currenc notes

hie doing so$ #ranches shoud #e satisfied that he,she is sti a -on%.esidentIndian ranches shoud ca for *urrenc 8ecaration Form (*8F) % !herever

appica#e % for endorsement and &eep a photocop of the same on record

LK .emittances from a#road for opening,crediting to F*-. () accounts !oud

ordinari #e made on in the designated currenc in !hich the account is desired

to #e opened,maintained If$ ho!ever$ remittance is received in a currenc other

than the designated currenc (incuding funds received in rupees # de#it to the

account of a non%resident #an&) it !i #e converted into the designated currenc at

the prevaiing rate # the #ranch at the ris& and cost of the remitter and the

account opened,maintained in the designated currenc

8050 (%($ A$%T F )EP&(T&,

ranches shoud accept deposits !ith minimum si+e stipuations as advised #

;reasur (Foreign)$ *entra 0ffice from time to time

*/..E-*< AM0/-; MI-IM/M

P 1@@@

/S8 1@@@

E/.0 1@@@

JP< 1@@@@@

*A8 1@@@

A/8 1@@@

806 A# a rule /ranche# #hould !a## accoun" o!ening en"rie# onlD a"er

recei!" o und# in our %o#"ro Accoun"0 Hence o!ening o FC%R-*. de!o#i"

/D !urcha#ing relean" in#"rumen" /D de/i" "o )*P-F. i# !rohi/i"ed0

90 RE%EWA: F )EP&(T& ,

91If the depositor has given automatic rene!a instruction$ the matured deposit

coud #e rene!ed on maturit !ithout reference to the account hoder

92 In the a#sence of automatic rene!a instruction$ if the deposit is not rene!ed

on the date of maturit and rene!ed su#se>uent$ then overdue interest for the

#ro&en period !i #e paid at the .F* H S rate (simpe) prevaiing on the date of


18/32

maturit

ac& dated rene!a of deposit is not permitted

1?0 PREAT$RE C:&$RE,.eserve an& has stipuated that !hie an&s shoud permit premature !ithdra!a

of deposits under the scheme$ the are free to ev penat for such premature

!ithdra!a at their discretion an&s ma aso$ at their discretion$ ev penat to

recover the s!ap cost in the case of premature !ithdra!a of F*-. () deposits

;he components of penat shoud #e cear #rought to the notice of the depositors

at the time of acceptance of deposits and if it is not done$ the e7change oss arising

out of premature !ithdra!a !i have to #e #orne # the an&s

0ur an&s6 present guideines on premature cosure of F*-.() deposit are as

under

-a.-o interest is paa#e if the deposit is cosed #efore one ear

Interest is paid at the eigi#e rate for the period the deposit has run minu#a

penat of 1 on premature cosure of the deposit for pament

Interest is paid at the eigi#e rate for the period the deposit has run i"hou"an

penat$ if such cosure is for rene!a

-/.0verdue interest$ paid if an$ at the time of rene!a of the deposit !hich is

no! cosed #efore maturit$ !i #e recovered if the deposit has run for a period of

ess than G months and need not #e recovered if such forecosure ta&es pace after

G months

110PA=E%T F )EP&(T&,

Maturit proceeds of F*-. () accounts or premature !ithdra!a thereof for the

purpose of meeting oca dis#ursements in India shoud #e converted into rupees at

;; #uing rate for the reative currenc ruing on the date of !ithdra!a and shoud

#e routed through the account of the depositor *ranche# #hould exerci#e

u"mo#" cau"ion and care hen "heD receie in#"ruc"ion or clo#ure -on

ma"uri"D or oreclo#ure. and re!a"ria"ion /D Fax or e'mail0 TheD #hould

eriD i"# au"hen"ici"D and #ee conirma"ion rom "he de!o#i"or /eore

ac"ing u!on #uch me##age#

120An inand movement of funds for the purpose of operating F*-. () accounts

as !e as for repatriation a#road for #aances hed in F*-. () accounts !oud #e

free of inand e7change or commission$ for non%resident depositors

130 WHE% THE )EP&(TR *ECE& RE&()E%T,


19/32

hen the -.I returns to India for permanent settement$ the foo!ing options are

avaia#e to him regarding treatment of F*-.() deposit !ith une7pired maturit=

-a..etain the F*-.() deposit as per the origina terms ti maturit$ ie$ the

origina contracted rate of interest on F*-.() deposit !i #e paid ti maturit forthe contracted period 0n maturit$ convert the F*-.() deposit as .F* 8eposit (if

eigi#e) or as a .upee deposit at ;; #uing rate prevaiing on the date of

conversion

-/.If the depositor re>uests for premature cosure of F*-.() deposit and

conversion to .F* deposit$ pena provisions sha not #e appica#e o!ever$ if the

depositor re>uests for premature cosure and conversion to rupee deposit$ pena

provisions sha app

14 %(%AT(%&,

14010-omination faciit is avaia#e to F*-.() depositors as in an other deposit

accounts

14020.esident nominees ma #e ao!ed funds (From out of their share of

proceeds of -on%.esident Indian6s deposits) to!ards i>uidation of ia#iities of the

deceased -.I depositor at the overseas centre$ #efore setting the caim

14030 (%TERE&T PA=A*:E % FC%R-*. )EP&(T F A )ECEA&E)

)EP&(TR@&,

ranches shoud note the foo!ing guideines !hie setting caims in the case of a

deposit standing in the name,s of H

(i)a deceased individua depositor$ or

(ii)t!o or more Coint depositors$ !here one of the depositors had died Interest on

such F*-.() deposit,s of the deceased depositor$ sha #e paid as indicated

#eo! =

I At the contracted rate on maturit of the deposit

IIIn the event of the heir,s$ ega representative,s or nominee,s caiming the

pament of the deposit #efore maturit date$ #ranches !i pa interest at the rate

as appica#e for the period for !hich the deposit has run (as prevaiing at the time

of opening of the deposit in >uestion) !ithout eving an pena interest


20/32

IIIIn the event of death of the depositor #efore the date of maturit of the deposit

and the amount is caimed after the date of maturit$ the #an& shoud pa interest

at the contracted rate ti the date of maturit From the date of maturit to the

date of pament$ the #an& shoud pa simpe interest at the appica#e rateoperative on the date of maturit$ for the period for !hich the deposit remained

!ith the #an& #eond the date of maturit

IBIf the depositor dies after the date of maturit of the deposit$ the #an& shoud

pa interest at a rate operative on the date of maturit in respect of savings

deposits hed under .F* account scheme$ from the date of maturit ti date of

pament$ appropriate to the currenc of the deposit$ irrespective of the fact

!hether the heir,s$ ega representative,s or nominee,s see& rene!a of the

deposit,s or see& repatriation of the amount$ su#Cect to the condition that the are

eigi#e to receive the caim in foreign currenc

BIf the heirs$ ega representatives or nominees see& spitting of the deposit and

issuance of t!o or more receipts individua in the name of heir,s$ ega

representative,s or nominee,s$ such spitting sha not #e construed as premature

cosure and no penat !i #e evied provided the period and the aggregate amount

of the deposit do not undergo an change

BIIf the ega heir,s are residents$ then the maturit proceeds ma #e converted

into Indian rupees on the date of maturit and for the su#se>uent period the

interest sha #e paa#e at a rate appica#e to the deposit of simiar maturit

under the domestic deposit scheme

150 :A%& A%) VER)RAFT&

15010 T THE )EP&(TR

ranch ma e7tend oans and advances to the depositor against his deposit for

purposes other than prohi#ited investments su#Cect to compiance of prescri#ed

margin norms and rate of interest as per *entra 0ffice circuars in force ;hegenera guideines stated in paragraphs 911 to 9K of this chapter under section

A sha app for oans and advances granted against the securit of F*-.

deposits Re#ere *an ha# !rohi/i"ed *an# rom gran"ing re#h loan# or

reneing exi#"ing loan# in exce## o Ru!ee# 1??lah# again#" FC%R -*.

de!o#i"# ei"her "o "he de!o#i"or or "hird !ar"ie#0;he oan proceeds is to #e

credited to -.0 Account and not to depositor6s -.E Account
http://172.16.0.5/BOI2011/After_Convert_Html%20(Vol%203)/CHAP-2%20-NRI%20OTH%20THAN%20BKS.html#para911http://172.16.0.5/BOI2011/After_Convert_Html%20(Vol%203)/CHAP-2%20-NRI%20OTH%20THAN%20BKS.html#para911


21/32

15020 ;he oan can #e repaid either # fresh remittance from a#road or out of

maturit proceeds of the deposit ;he oan can #e repaid out of funds hed in

his,her -.0 account

15030T TH(R) PART(E&

ranch ma propose to their .egiona 0ffice for oans to third parties !ho are

residents in India against F*-. () deposits$ su#Cect to foo!ing conditions=

-a.;here shoud not #e an direct or indirect foreign e7change consideration for

the non%resident depositor agreeing to pedge his,her deposit$ to ena#e the

resident individua,firm,compan to o#tain the faciit

-/.;he period of oan shoud not e7ceed the une7pired period of maturit of the

deposit accepted as securit ;he non%resident depositor shoud furnish an

irrevoca#e underta&ing to the #ranch not to !ithdra! the deposit during the

pendenc of oan,overdraft

-c.;he oan shoud #e utiised for persona purposes or for carring on #usiness

activit other than prohi#ited purposes

-d.ranches shoud satisf themseves as to the accepta#iit of purpose$

genuineness of the credit needs of the #orro!er and end use of funds ;he shoud

not #e guided soe # the avaia#iit of securit

-e.ranches shoud comp !ith prescri#ed margin norms and rate of interest as

per *entra 0ffice circuars in force

15040ranches shoud #e guided # 8ocumentation procedure for oans against

-.E deposits set out in this *hapter !hie granting oans against F*-.() deposits

160FRWAR) CVER T %%'RE&()E%T (%)(A%&

ranches are no! permitted to #oo& for!ard cover for their -on%.esident Indian

customers against their F*-.() and -.E deposits ranches shoud refer to

detaied guideines furnished in the *hapter -o 4 tited 5For!ard contracts6 of this

voume of oo& of Instructions

170 REPRT(%

17010ranches shoud send sstem generated reports of opening, rene!a , cosure

of F*-.() 8eposits in the prescri#ed format prompt

17020 -A8 #ranches authorised to hande F*-. deposits shoud for!ard such

reports to the respective A8 #ranch


22/32

1703 ;he >uarter F*-. reconciiation statement shoud #e thorough

scrutinised and su#mitted after reconciiation aong !ith necessar

opening,rene!a,cosure reports

180&TATEE%T

As per e7tant guideines$ #ranches shoud do the updation !ith regard to the

countr codes and transaction codes;he Foreign E7change 8epartment$ *entra

0ffice$ !oud send the statement -.8%*S. for the #an& as a !hoe to .eserve

an& of India$Mum#ai

190 FC%R &$&PE%&E ACC$%T B %A) *RA%CHE&

19010;he F*-. (Suspense) Account shoud not #e used # an #ranch for an

purpose

2?0ranches shoud #e guided # instructions contained Master *ircuar on F*-.

and amendments thereto # AP (8I.) circuars issued # .eserve an& of India

RE&()E%T FRE(% C$RRE%C= ACC$%T& &CHEE -RFC Accoun"#.

A A8 ranches are permitted to open .F* accounts su#Cect to compiance of

instructions aid do!n in Foreign E7change Management (Foreign *urrenc Accounts #

a person resident in India) .eguations$ 2@@@ -otification -o FEMA 1@,2@@@%. dated

rd Ma 2@@@ and su#se>uent amendments as !e as other instructions issued #

*entra 0ffice from time to time

10 Eligi/ili"D

11/nder this scheme$ persons of Indian nationait or origin$ !ho having #een

resident outside India for a continuous period of not ess than one ear and have

#ecome persons resident in India on or after 1Lth Apri 1992 are eigi#e to open and

maintain .F* accounts !ith #ranches in a free converti#e foreign currenc (For

arriving at the period of continuous sta a#road of not ess than one ear$ short visits to


23/32

India on persona grounds i&e meeting fami mem#ers,reatives or on heath grounds

!hich do not indicate the person6s intention to sta in India for an indefinite period ma

#e ignored)

12Persons !ho return to India after a short assignment of ess than one ear a#roaddesiring to have .F* accounts shoud app through the #ranch to .I in form .F* .F*

accounts opened !ith the specific approva of .I !i #e governed # the conditions

stipuated # .I !hie granting such approva

1Persons !ho returned to India prior to 1Lth Apri 1992 after having #een resident

outside India for a continuous period of not ess than one ear are aso eigi#e to open

.F* accounts if=

a0;he are hoding vaid specific permission,icense from .I as on 14%K%92 to maintainforeign currenc accounts or to hod other foreign currenc assets a#road

or

/0;he are in receipt of pension or other monetar #enefits from their overseas

empoers su#se>uent to their return to India even if the did not maintain foreign

currenc accounts or hod other foreign currenc assets a#road

For the purpose of this Scheme$ a person (not #eing a citi+en of Pa&istan or

angadesh) sha #e deemed to #e of Indian origin$ if=

ihe at an time hed an Indian passport

or

iihe or either of his parents or an of his grandparents !as a citi+en of India # virtue

of the *onstitution of India or the *iti+enship Act 1933

or

iiithat person is the spouse of an Indian citi+en or of a person of Indian origin (not

#eing a citi+en of Pa&istan or angadesh)

20 %a"ure o Accoun",

21;he .F* account can #e maintained in the form of term deposits or Savings an&

Account (!ithout che>ue #oo& faciit) ;he Savings an& account !i #e !ithout

che>ue #oo& faciit and the minimum #aance is /S8 3@@ to #ecome eigi#e for .F* S

interest

;he period of term deposit in "he orm o R)P!oud #e as under=

i)Si7 months and a#ove #ut ess than 0ne ear


24/32


25/32

the time of rene!a$ !hichever is o!er

3 If such rene!ed deposits are cosed #efore competion of G months$ then the

overdue interest paid on such rene!ed deposits shoud #e recovered -o interest is

paa#e on the deposit as it !oud not have run for the minimum period

3K .ecover of s!ap charges has #een dispensed !ith for the time #eing

33 In case of premature cosure$ !hether overdue interest has #een paid or not$

#ranches !i pa interest at the rate appica#e to the period for !hich the deposit has

run$ as prevaiing on the date of opening,rene!a ess one percent penat

60 Credi"# "o "he Accoun"

/nder noted credit transactions ma #e ao!ed # #ranches in .F* accounts=

G1 .emittance in converti#e foreign currenc from outside India through norma

#an&ing channes representing=

iFunds in #an& accounts outside India forming part of eigi#e assets hed # the

eigi#e person

iiIncome such as dividend$ interest$ profit$ rent$ etc earned on eigi#e assets hed #

the eigi#e person

iiiSae proceeds of eigi#e assets

G2 Pension or other monetar #enefits received from outside India in converti#e

foreign currenc$ through norma #an&ing channes$ arising out of empoment ta&en up

outside India # the eigi#e person prior to his returning to India

G Interest earned on .F* account

GK Foreign currenc notes,traveers che>ues #rought into India # the eigi#e

person$ provided that !here the amount tendered e7ceeds /S8 1@@@@ or its e>uivaent

or !here the vaue of foreign currenc,#an& notes e7ceeds /S8 3@@@ or its e>uivaent

the have #een decared on the *urrenc 8ecaration Form

G3 ;ransfers from other .F* accounts of the account hoder

GG aances in an -.E,F*-. Account (other than in -.E rupee accounts of persons


26/32

resident in the erst!hie iatera roup countries !hich have #een funded in non%

converti#e rupees) in the name of the eigi#e person standing to his credit at the time

of his arriva in India (-o penat !oud #e paa#e for premature !ithdra!a of

-.E,F*-. deposits in such cases)

G4 /nutiised entitements under an vaid .IFEE permit or .econversion faciit

granted # .I

GL /nspent foreign e7change surrendered # .F* account hoders can aso #e

accepted provided the #ranch is satisfied that the foreign e7change,currenc concerned

had in fact #een reeased for trave etc a#road # de#it to the same .F* accounts and

the amount of foreign e7change,currenc is surrendered !ithin the stipuated period as

re>uired under the E7change *ontro .eguations

(Eigi#e Assets H Assets ac>uired or hed other!ise than in contravention of the Act #

an eigi#e person$ !hie he !as resident outside India (non%resident)$ in the form of

deposits in #an&s outside India$ investments in foreign currenc shares or securities or

immova#e properties situated outside India or investments in #usiness etc outside

India and incude foreign e7change earnings through empoment$ #usiness or vocation

outside India ta&en up or commenced # such person !hie he !as resident outside

India)

70 )e/i"# "o "he Accoun"

41 ;he funds in the account ma #e ao!ed to #e free utiised # the account hoder

for #onafide remittance outside India through norma #an&ing channes incuding for

investments a#road provided the cost of such investments and,or su#se>uent paments

re>uired there for are met out of .F* account

42 ranches ma permit !ithdra!as,paments from such accounts (other than for

remittances) outside India$ or for paments in foreign currenc authorised to #e made

in India # .I on in e>uivaent Indian rupees

80 Ra"e o (n"ere#"

.ates of interest on deposits hed under this scheme are advised # ;.EAS/.uarter on the ast !or&ing da of the >uarter on product%!ise cacuations For

.F*% term deposit accounts for the period 12 months and a#ove$ interest !i #e

compounded haf ear as in the case of F*-. deposits For term deposits of G

months and a#ove #ut ess than 12 months$ interest !i #e paid at a simpe rate


27/32

90 :oan#@oerdra"# again#" "he de!o#i"#

-o oan,overdrafts sha #e granted # #ranches against #aances in .F* accounts

1?0 %omina"ion Facili"D1@1 ;he .F* accounts sha have the nomination faciit as in the case of resident

rupee account

110 Tran#er o *alance# on /ecoming %on're#iden"

Funds hed in .F* account ma #e free remitted a#road or credited to fresh -.E,F*-.

accounts in the event of the account hoder #ecoming non%resident # virtue of his

going a#road for empoment etc

120 Accoun"ing Procedure,ranches ma refer to Permanent F *ircuar -o2,92%9 dated 2K992 issued #

Foreign E7change 8epartment$ *entra 0ffice Encose a cop of the circuar

A--E/.ES

I A Appication for opening .F* Account

II A 8ai .eport of EEF*,.F*,F*A ;ransactions (avaia#e in *hapter I H EEF*

Accounts)

For an change in Accounting Procedure that ma ta&e pace hereafter #ranches are to

#e guided # the *ircuars that ma #e issued # the Foreign E7change 8epartment$

*entra 0ffice

RE&()E%T FRE(% C$RRE%C= -)E&T(C. ACC$%T

.eserve an& vide FEMA notification -o FEMA 4K,2@@2%. dated -ovem#er 1$ 2@@2

has ao!ed a person resident in India to open$ hod and maintain !ith an authori+ed

deaer in India a foreign currenc account to #e &no!n as .esident Foreign *urrenc

(8omestic) Account

According a A8 #ranches are permitted to open a foreign currenc deposit account

for a person (I-8IBI8/A? 0-?


28/32

account

20 %a"ure o Accoun"

;he .F* (8) account can #e maintained in the form of *urrent Account on (!ithout

che>ue #oo& faciit)

30 Permi""ed CurrencD

;he account can #e denominated in anone of the currencies permitted for F*-. ()

vi+ /S8$ P$ E/.$ JPuivaent in other currencies and there is

no ma7imum prescri#ed

60 Permi""ed Credi"#

;he foo!ing *redits are ao!ed in .F* (8) account

10ut of foreign e7change ac>uired in the form of *urrenc -otes$ an& -otes and

;raveers *he>ues !hie on a visit to an pace outside India # !a of pament for

services not arising from an #usiness in or anthing done in India

2Amount received as a honorarium or gift or for services rendered or in settement of

an a!fu o#igation from an person not resident in India and !ho is on a visit to India

Amount received # !a of honorarium or gift !hie on a visit to an pace outside

India

K.epresents the unspent amount of foreign e7change ac>uired # him from an

authori+ed person for trave a#road

3Foreign e7change earned through e7port of goods and,or services$ roat$

honorarium etc$ and,or gifts received from cose reatives (as defined in *ompanies

Act) and repatriated to India through norma #an&ing channes # resident individuas


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70 Permi""ed )e/i"#

Paments to!ards a current account transaction in accordance !ith the provisions of

Foreign E7change Management (*urrent Account ;ransactions) .ues$ 2@@@ and

to!ards a capita account transaction permissi#e under the Foreign E7changeManagement (Permissi#e *apita Account ;ransactions) .eguations$ 2@@@ are ao!ed

80 Accoun"ing Procedure,

;he accounting procedure$ notiona rate$ reporting format,sstem !i #e same as in the

case of RFC de!o#i"#0 ;he ? head for .F* is used for .F* (8) deposits aso ut or

"he !ur!o#e o di#"inc"ion$ a #e!ara"e ledgerma #e maintained for .F* (8)

deposits For statistics,MIS purpose$ #ranches shoud maintain Progressive #aance and

#aance shoud #e taied as per the e7isting norms,procedures

A%%E;$RE ( A

APP:(CAT(% FR PE%(% A% RFC ACC$%T

;o

;he Manager

Pease open an .F* Account in m name ;he reevant particuars are as under =

1 -ame and address of the appicant =

2 -ationait =

0rigin (state !hether ou are of =

Indian origin)

K Passport particuars =

-o =

Issuing Authorit =

E7pir 8ate =

3 8ate of arriva in India to =

#ecome a resident in India

GParticuars of residence outside India

*0/-;.

uired #

the authorised deaer for the atter to satisf himsef that the appicant is an eigi#e

person and the funds proposed to #e credited to the .F* Account are eigi#e for the

purpose

G-omination faciit is avaia#e to the .F* Accounts as in the case of resident rupee

accounts

Annexure ( *,

/nderta&ing from 8epositor of F*-. , .F* regarding pena provisions=

I ,e understand that #an& !i #e charging,eving pena interest ,s!ap charges for

premature cosure of the deposits (together !ith s!ap charges$ if an)$ for an purpose

as per rues given hereunder and I agree for the same

FC%R8EP0SI;S=

1If the F*-. () deposit has not run for G months$ overdue interest paid$ if an at

the time of rene!a of the deposit !i #e recovered -o interest is paa#e on such

deposits as the deposit !oud not have run for the minimum period of 12 months as per

.I stipuation

2 If the deposit has run for 12 months and a#ove$ pena interest O 1 (@3$ if

premature cosure is for the purpose of rene!a) !i #e recovered

RFC8EP0SI;S=

1If the deposit has not run for G month$ #ut overdue interest paid$ if an at the time ofrene!a of the deposit !i #e recovered -o interest is paa#e on such deposits as the

deposit !oud not have run for the minimum period of G month as per .I stipuation

2If the deposit has run for G month and a#ove Pena interest O 1 (@3$ if pre

mature cosure is for the purpose of rene!a) !i #e recovered


32/32

SI-A;/.E 0F ;E */S;0ME.

section a rupee account of non residential indians other than banks

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