OPENING OF ACCOUNTS: AN ACCOUNT MAY BE OPENED IN THE NAME OF A - PowerPoint PPT Presentation

Chapter No. Page No. 12 255 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS OPENING OF ACCOUNTS: � AN ACCOUNT MAY BE OPENED IN THE NAME OF A FOREIGN NATIONAL RESIDENT IN INDIA OR A FIRM, COMPANY OR ANY OTHER ORGANIZATION’S BRANCH IN INDIA, ONLY WITH A BANK AUTHORIZED TO DEAL IN FOREIGN EXCHANGE. � FOR OPENING THE ACCOUNT FORM QA 22, IN DUPLICATE SHOULD BE FILLED IN. � IN CASE OF AN OFFICE OR BRANCH OF A FOREIGN COMPANY QA 22 FORM SHOULD BE SIGNED BY THE PERSONS AUTHORIZED TO OPERATE THE ACCOUNT.

Chapter No. Page No. 12 255 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS FORM QA 22: � IT IS AN UNDERTAKING BY THE APPLICANT THAT HE WILL NOT MAKE AVAILABLE TO ANY ONE IN INDIA ANY FOREIGN CURRENCY AGAINST REIMBURSEMENT IN RUPEES OR IN ANY OTHER MANNER. � THE APPLICANT IS ALSO REQUIRED TO DECLARE THE NATURE OF HIS EMPLOYMENT / OCCUPATION IN INDIA. � PRINCIPAL SOURCE OF HIS ACCOUNT.

Chapter No. Page No. 12 255 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS FORM QA 22: EXEMPTION: � FOREIGN NATIONALS OF NON-INDIAN ORIGIN PERMANENTLY RESIDENT IN INDIA. � FOREIGN NATIONALS OF INDIAN ORIGIN. � FOREIGN EMBASSIES, CONSULATES, TRADE REPRESENTATIVES, GOVERNMENT ESTABLISHMENTS IN INDIA, OFFICIALS OF UNITED NATIONS ORGANISATIONS AND ITS AFFILIATE BODIES IN INDIA.

Chapter No. Page No. 12 256 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS STATUS OF ACCOUNT: � WITH THE APPROVAL OF FORM QA 22 AN ACCOUNT, MAY BE TREATED AS A RESIDENT ACCOUNT AND OPERATIONS MAY BE ALLOWED FREELY. � WHEN THE ACCOUNT HOLDER CEASES TO BE RESIDENT IN INDIA, THE ACCOUNT MAY BE CONVERTED INTO AN ORDINARY NON-RESIDENT RUPEE (NRO) ACCOUNT.

Chapter No. Page No. 12 257 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS LOANS / ADVANCES: � PERSONAL LOANS AND ADVANCES TO FOREIGN NATIONALS NOT PERMANENTLY RESIDENT IN INDIA MAY BE GRANTED UP TO A MAXIMUM OF Rs. 5,00,000. � THE LOANS AVAILED CAN NOT BE USED FOR INVESTMENT OR DEALING IN STOCKS OR SHARES. � THIS LIMIT APPLIES TO THE TOTAL BORROWINGS FROM ALL THE BANKS. � LOANS OR OVERDRAFTS SHOULD NOT BE GRANTED TO LIAISON OFFICERS OF FOREIGN COMPANIES, SINCE ALL THE EXPENSES OF SUCH OFFICES ARE REQUIRED TO BE MET OUT OF THE FUNDS REMITTED FROM ABROAD.

Chapter No. Page No. 12 257 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS DIPLOMATIC BOND STORE ACCOUNT � THIS IS A SPECIAL ACCOUNT MAINTAINED WITH AN AUTHORIZED DEALER IN THE NAME OF A PERSON IN FOREIGN DIPLOMATIC SERVICE IN INDIA. � THE ACCOUNT IS TO FACILITATE PAYMENTS FOR HIS PURCHASES FROM BONDED STOCK HELD BY A FIRM OR COMPANY HAVING SPECIAL FACILITIES FOR THE IMPORT OF STORES INTO BOND.

Chapter No. Page No. 12 258 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS RUPEE ACCOUNT OF NON-RESIDENT BANKS � A RUPEE ACCOUNT IN THE NAME OF A BRANCH OR CORRESPONDENT OUTSIDE INDIA MAY BE OPENED BY AN AUTHORIZED DEALER WITHOUT PRIOR REFERENCE TO THE RESERVE BANK. � AUTHORIZED DEALER IS REQUIRED TO SEND TO THE CONCERNED REGIONAL OFFICE OF THE RESERVED BANK AN ADVICE, GIVING THE NAME AND ADDRESS OF THE BANK ABROAD, THE PURPOSE FOR WHICH THE ACCOUNT WILL BE USED, AND MANNER IN WHICH IT WILL BE KEPT IN FUNDS. � A COPY OF THE ADVICE IS ENDORSED TO THE CONTROLLER, EXCHANGE CONTROL DEPARTMENT, RBI.

Chapter No. Page No. 12 259 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS TRANFERS BETWEEN TWO NON-RESIDENT BANKS IN THE CASE OF TRANSFERS FROM ONE NON-RESIDENT BANK ACCOUNT WITH ONE AUTHORIZED DEALER TO ANOTHER NON-RESIDENT BANK ACCOUNT WITH ANOTHER AUTHORIZED DEALER, THE RESPONSIBILITY FOR ENSURING THAT THE TRANSACTION IS IN CONFORMITY WITH THE EXCHANGE CONTROL REGULATIONS RESTS WITH BOTH THE DEALERS.

Chapter No. Page No. 12 259 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS FUNDING OF ACCOUNT � AN AUTHORIZED DEALER MAY FREELY PURCHASE TTs AND OTHER REMITTANCES IN ANY PERMITTED CURRENCY FROM HIS OVERSEAS BRANCH OR CORRESPONDENT TO KEEP IN FUNDS THE RUPEE ACCOUNT OF THE LATTER MAINTAINED WITH HIM FOR THE PURPOSE OF MEETING BONAFIDE PAYMENTS AGAINST EXPORTS AND OTHER COMMITMENTS. � THE ACQUISITION OF SPOT RUPEES BY THE NON- RESIDENT BRANCH OR CORRESPONDENT FOR THE PURPOSE OF BUILDING AN OPEN POSITION IN THE CURRENCY OR FOR HOLDING THEM AS COVER AGAINST ITS FUTURE COMMITMENTS, IS NOT PERMITTED UNDER THE EXCHANGE CONTROL REGULATIONS.

Chapter No. Page No. 12 260 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS CONVERTIBILITY BANK IN AN ERSTWHILE EXTERNAL GROUP COUNTRY � THE BALANCE HELD IN THE RUPEE ACCOUNT OF AN OVERSEAS BRANCH OF A CORRESPONDENT MAY BE FREELY CONVERTED INTO ANY PERMITTED CURRENCY. � THE TRANSACTION SHOULD BE REPORTED TO THE RESERVE BANK ON FORM A2 FOR THE FOREIGN CURRENCY LEG AND ON FORM A3 FOR THE RUPEE LEG UNDER COVER OF THE RELEVANT R RETURN.

Chapter No. Page No. 12 260 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS CONVERTIBILITY BANK IN AN ERSTWHILE BILATERAL GROUP COUNTRY � IF THE ACCOUNT IS OF A BRANCH IN A COUNTRY BELONGING TO THE ERSTWHILE BILATERAL GROUP, THE BALANCE HELD CAN NOT BE CONVERTED INTO ANY FOREIGN CURRENCY WITHOUT THE PRIOR APPROVAL OF THE RESERVE BANK.

Chapter No. Page No. 12 261 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS CREDIT FACILITIES � AN AUTHORIZED DEALER MAY GRANT TO HIS OVERSEAS BRANCHES AND CORRESPONDENT OVERDRAFT OR ANY OTHER FUND-BASED CREDIT FACILITY UP TO A MAXIMUM LIMIT OF Rs. 150 LAKHS WITHOUT PRIOR APPROVAL OF THE RESERVE BANK. � THIS LIMIT APPLIES TO THE AGGREGATE AMOUNT THAT MAY REMAIN OUTSTANDING AT ANY TIME AGAINST ALL OVERSEAS BRANCHES AND CORRESPONDENTS OF THE AUTHORIZED DEALER. � FOR LOANS AND ADVANCES IN EXCESS OF THE AFORESAID LIMIT, PRIOR APPROVAL OF THE RESERVE BANK IS NECESSARY.

Chapter No. Page No. 12 261 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS SPECIAL REPORT TO RESERVE BANK ABOUT RUPEE DEALING � AUTHORIZED DEALERS UNDERTAKING SALE AND PURCHASE TRANSACTIONS IN RUPEES WITH OVERSEAS BANKS ON ANY SINGLE DAY BEYOND Rs. 300 LAKHS, SHOULD REPORT TO THE CENTRAL OFFICE OF THE RESERVE BANK ON THE SAME DAY IN THE FORMAT. CONT….

Chapter No. Page No. 12 261 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS FORMAT: � DATE AND TIME OF TRANSACTION. � AMOUNT OF SALE / PURCHASE OF INDIAN RUPEES. � NAME OF OVERSEAS BANK. � DATE OF DELIVERY OF RUPEE. � CURRENCY AGAINST WHICH SALE/PURCHASE WAS MADE � RATE. � UNDERLYING CROSS RATE ON WHICH THE ABOVE RATE WAS BASED. � NAME OF THE AUTHORIZED DEALER AT WHICH THE RUPEE WILL BE DEBITED / CREDITED.

Chapter No. Page No. 12 261 International Finance ACCOUNT OF FOREIGN NATIONALS / FIRMS / COMPANIES AND RUPEE ACCOUNTS OF NON - RESIDENT BANKS RUPEE ACCOUNTS OF EXCHANGE HOUSES � WHEN A PRIVATE OVERSEAS EXCHANGE HOUSE APPROACHES AN AUTHORIZED DEALER IN INDIA FOR OPENING A RUPEE ACCOUNT FOR FACILITATING PRIVATE REMITTANCES TO INDIA MAINLY ON BEHALF OF NON-RESIDENT INDIAN OR FOR PAYMENT OF EXPORT PROCEEDS TO AN INDIAN EXPORTER, THE AUTHORIZED DEALER, MAY OPEN SUCH AN ACCOUNT AND ALLOW PAYMENTS UP TO RS. 50,000 PER TRANSACTIONS.