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8/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks
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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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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
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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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(.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
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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
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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
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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
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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$%T F %%'RE&()E%T& THER THA% *A%+&
NON-RESIDENT (ORDINARY) NRO%%'RE&()E%T -E;TER%A:. < %RE
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10WH CA% PE%,
An person resident outside India
(other than a person resident in -epa
and hutan) (0pening of accounts of
individuas , entities of Pa&istan ,
angadesh nationait , o!nership as
!e as erst!hie 0*s re>uire prior
approva of .eserve an& of India)
-on%.esident individuas of Indian
-ationait or origin (0pening of -.E
accounts in the names of Pa&istani ,
angadeshi individuas , entities re>uire
prior approva of .eserve an& of India)
20 &$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
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;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
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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
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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
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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
8/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks
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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/8/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks
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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$
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Pound Stering$ E/.0$ Japanese
8/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks
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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
8/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks
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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,
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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
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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#para9118/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks
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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
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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
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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
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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
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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
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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-?
8/13/2019 Section a Rupee Account of Non Residential Indians Other Than Banks
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
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SI-A;/.E 0F ;E */S;0ME.