CIR. NO. 77/2003-04-RB, DT. 13/03/2004

Foreign Exchange Management Act, 1999 - Guidelines for Compilation of R-Returns

Attention of Authorised Dealers (ADs) is invited to A.P.(DIR Series) Circular No.76 dated February 3, 2003, in terms of which they are required to submit R-Return (NOSTRO) and R-Return (VOSTRO) in hard copy together with transaction details in (FET-ERS - Version 5.0) in floppy.

2. The R-Return formats have been updated and enclosed as Annexures I (NOSTRO) and IA (VOSTRO). Authorised Dealers may please note the changes involving the deletion of Items Nos. I-H & II-H - Notional sale & Notional purchase and Item No. V - Aggregate Balance in R-Return (NOSTRO). They may also note that on crystallisation/cancellation of Export Bills Purchased/Negotiated/Discounted, the transaction has to be included under Item IC (i)/(ii). The list of revised purpose codes for purchase, sale transactions and also a list of purpose codes to be used for filling up the cover page of R-Return are enclosed as Annexure II, Annexure III & Annexure IV.

3. It has also been decided to simplify the procedures and documentation formalities in respect of non-import remittances. Accordingly, in consultation with FEDAI, the A-2 form has been modified to incorporate the application form and the declaration in terms of Section 10(5) of FEMA, 1999 and the specimen form is enclosed as Annexure V. The customer will be required to submit only this form in respect of permissible transactions pertaining to individuals up to a limit of USD 5000 as per our AP DIR circular No 55 dated 23 Dec 2003. The AD will fill up the reverse of the form which contains purpose-wise codes. For undertaking transactions under the Liberalised Remittance Scheme of USD 25000 for resident individuals, ADs may be guided by the instructions conveyed in our AP DIR No 64 dated February 4, 2004. As regards other transactions, apart from Form A2 as at Annexure V, the AD may call for additional information and documents as may be required. In respect of regular corporate customers, the bank may like to obtain one-time declaration under FEMA as per the proforma given in Annexure VI. The objective behind these steps is to extend hassle-free service to all customers.

4. Authorised Dealers are required to submit R-Return (NOSTRO) and R-Return (VOSTRO) as per the updated formats in hard copy along with FET-ERS floppy on fortnightly basis with effect from April 1, 2004.

5. The officials of the Authorised Dealers have been imparted training by the Reserve Bank on the new FET-ERS (Version 6.1) package, which has been revised comprehensively incorporating new purpose codes for various foreign exchange transactions. The package containing the new version will be made available / distributed to all ADs by the Bank shortly. Authorised Dealers may please arrange for training the officials of the remaining branches so that the foreign exchange transactions may be reported with new purpose codes through the revised FET-ERS (Version 6.1) from April 1, 2004.

6. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Yours faithfully,

Grace Koshie
Chief General Manager

Annexure I

R-RETURN (NOSTRO) _______________________________| | | |

(CURRENCY NAME) (SWIFT Currency Code)

Return for the period ended
(DD-MM-YYYY in Numerals)

(To be submitted fortnightly, as at the close of business on the 15th and the last day of each month)

Name of AD ______________________________________ AD Code No. _____________________________
Address of AD _____________________________________________________________________________
Licence No._______________________________________ Serial No. ________________________________

(Amounts to be rounded off to the nearest unit of the currency)
I. Outflows.

A. Sales to Public against Imports into India

Total of IA (i) and IA (ii) _________________

B. Sales to Public against Imports into other countries

C. Sales to Public for purposes other than Imports

D. Sales to other Authorised Dealers in India

(For ‘A’ Category Branches only)

Sales to Reserve Bank of India

Sales to overseas banks and branches

Aggregate sales at Branches

Total of I A to I G ___________________

II. Inflows.

A. Purchases from Public against exports

Total of II A(i)(a), II A(i)(b) & II A(ii) __________________

Purchases from Public against third country exports (i.e.
intermediary trade not covered by GR/PP/SOFTEX Forms/SDF )

Purchases from Public other than against exports

Total of II C (i) and II C (ii) __________________

Purchases from other Authorised Dealers in India

(For ‘A’ Category Branches only)

Purchases from Reserve Bank of India

Purchases from overseas banks and branches

Aggregate purchases at branches

Total of IIA to IIG _______________

Items III C to III H and IV C to IV H on the following page are for ‘A’ category branches only.

Balances against various accounts are to be shown as per respective mirror accounts maintained locally.

Amount -----------------------------
Debit	Credit

III. Opening Balance (closing balance of previous period)
A. Cash Balance ________________	__________________
B. Suspense Account Balance ________________	__________________
C. Deposits with other Authorised Dealers in India ________________	__________________
D. Deposits with Reserve Bank of India ________________	_________________
E. Fixed Deposits ________________	__________________
F. Treasury Bills/Treasury Deposits ________________	__________________
G. Securities and Shares ________________	__________________
H. Foreign Currency Loan (Outstanding) ________________	__________________
Total of IIIA to IIIH ________________	__________________
IV. Closing Balance A. Cash Balance ________________	__________________
B. Suspense Account Balance ________________	__________________
C. Deposits with other Authorised Dealers in India ________________	__________________
D. Deposits with Reserve Bank of India ________________	__________________
E. Fixed Deposits ________________	__________________
F. Treasury Bills/Treasury Deposits ________________	__________________
G. Securities and Shares ________________	__________________
H. Foreign Currency Loan (Outstanding) ________________	__________________
Total of IVA to IVH ________________	__________________

Note : Authorised Dealers should ensure that
Opening Balance + All Inflows - All
Outflows tally with Closing Balance.

We hereby certify that

Stamp

__________________________
Seal

(Signature)

Name___________________________
Date_________________

Designation

___________________________

[# This certificate must invariably be signed by the official holding the charge of the branch
or by person of status not lower than that of Scale IV Officer.]

Annexure IA

R-RETURN (VOSTRO) _______________________| | | |

					(Currency Name)	(SWIFT Currency Code)			Return of operations of VOSTRO ACCOUNTS for the period ended .									(DD-MM-YYYY in Numerals)		(To be submitted, as at the close of business on the 15th and the last day of each month)Name and address__________________________________	A.D.Code No. _______________________of the Authorised __________________________________	Licence No. ________________________Dealer ___________________________________________	Serial No. of the Return_______________

(Amount to be rounded off to the nearest unit of the currency)

(1)	(2)	(3)		(4)		(5)	(6)	(7)	(8)		(9)	(10)	(11)

Name, Place and Country of bank branch or Correspondent	Opening Balance	Credits						Debits					Closing Balance
		Transactions with Public				Funding transactions	Total Credits	Transactions with Public			Withdrawal Transaction	Total Debits
		Imports		Others			(3) + (4) + (5)	Exports	Payments to Public			(7) + (8) + (9) +
		Imports		Others					Below Rs. 5 lakh	Rs.5 lakh & above
		Below Rs.5 lakh	Rs.5 lakh & above	Below Rs.5 lakh	Rs.5 lakh & above				Below Rs. 5 lakh	Rs.5 lakh & above

(1)	(2)	(a)	(b)	(a)	(b)	(5)	(6)	(7)	(a)	(b)	(9)	(10)	(11)
A) Banks
Sub-Total (A)
B) Private Exchange Houses
Sub-Total (B)
GRAND TOTAL

We hereby certify that (a) the figures reported in the above Return are true and correct;

(b) all the transactions effected by us and by our branches on the non-resident bank accounts maintained by us during the reporting period to which this Return relates have been reported in this Return;

(c) no remittance forms and GR/PP/SOFTEX/SDF pertaining to any of the previous periods or the current period are outstanding with us;

(d) all the R-Returns pertaining to the earlier periods have been submitted to the Reserve Bank.

# Signature_________________________________
Name and Designation of Authorised Official
Name of the AD & Branch

STAMPPlace________________________

[ # This certificate must invariably be signed by the official holding charge
of the branch o r by a person of status not lower than Scale IV Officer]

Annexure II

NEW PURPOSE CODES FOR REPORTING FOREX TRANSACTIONS RECEIPT PURPOSES

Group No.	Purpose Group Name	Purpose Code	Description
00	Capital Account	P0001	Repatriation of Indian investment abroad in equity capital (shares)
		P0002	Repatriation of Indian investment abroad in debt securities.
		P0003	Repatriation of Indian investment abroad in branches
		P0004	Repatriation of Indian investment abroad in subsidiaries and associates
		P0005	Repatriation of Indian investment abroad in real estate
		P0006	Foreign direct investment in India in equity
		P0007	Foreign direct investment in India in debt securities
		P0008	Foreign direct investment in India in real estate
		P0009	Foreign portfolio investment in India in equity shares
		P0010	Foreign portfolio investment in India in debt securities including debt funds
		P0011	Repayment of loans extended to Non-Residents
		P0012	Loans from Non-Residents to India
		POOH	Receipts o/a Non-Resident deposits (FCNRB/NRERA etc.) ADs should report these even if funds are not "swapped" into Rupees.
		P0015	Loans & overdrafts taken by ADs on their own account. (Any amount of loan credited to the NOSTRO account which may not be swapped into Rupees should also be reported)
		P0016	Purchase of a foreign currency against another currency.
		P0017	Sale of intangible assets like patents, copyrights, trade marks etc. by Indian companies
		P0018	Other capital receipts not included elsewhere
01	Exports (of Goods)	P0101	Value of export bills negotiated /purchased/discounted etc. (covered Group under GR/PP/SOFTEX/EC copy of shipping bills etc.)
		P0102	Realisation of export bills (in respect of goods) sent on collection (full invoice value)
		P0103	Advance receipts against export contracts (export of goods only)
		P0104	Receipts against export of goods not covered by the GR/PP/SOFTEX/EC copy of shipping bill etc.
		P0105	Export bills (in respect of goods) sent on collection.
		P0106	Conversion of overdue export bills from NPD to collection mode
		P0107	Realisation of NPD export bills (full value of bill to be reported)
02	Transportation	P0201	Receipts of surplus freight/passenger fare by Indian shipping companies operating abroad
		P0202	Purchases, on account of operating expenses of Foreign shipping companies operating in India
		P0205	Purchases on account of operational leasing (with crew) - Shipping companies
		P0207	Receipts of surplus freight/passenger fare by Indian Airlines companies operating abroad.
		P0208	Receipt on account of operating expenses of Foreign Airlines companies operating in India
		P0211*	Purchases on account of operational leasing (with crew) -Airlines companies
		P0213	Receipts on account of other transportation services (stevedoring, demurrage, port handling charges etc). '
03	Travel	P0301	Purchases towards travel (Includes purchases of foreign TCs, currency : notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received bv TT/SWIFT transfers or debit.
03	Travel	P0308	FC surrendered by returning Indian tourists.
04	Communication Service	P0401	Postal services
		P0402	Courier services
		P0403	Telecommunication services
		P0404	Satellite services
05	Construction Service	-P0501	Receipts for cost of construction of services projects in India
06	Insurance Service	P0601	Receipts of life insurance premium
		P0602	Receipts of freight insurance - relating to import & export of goods
		P0603	Receipts on account of other general insurance premium
		P0604	Receipts of Reinsurance premium
		P0605	Receipts on account of Auxiliary services { commission on Insurance)
		P0606	Receipts on account of settlement of claims
07	Financial Services	P0701	Financial intermediation except investment banking - Bank charges, collection charges, LC charges, cancellation of forward contracts, commission on financia! leasing etc.
		P0702	Investment banking - brokerage, underwriting commission etc.
		P0703	Auxiliary services - charges on operation & regulatory fees, custodial services, depository services etc.
08	Computer & Information Services	P0801	Hardware consultancy
		P0802	Software implementation/consultancy (other than those covered in SOFTEX form)
		P0803	Data base, data processing charges
		P0804	Repair and maintenance of computer and software
		P0805	Mews agency services
		P0806	Other information services- Subscription to newspapers, periodicals, etc.
09	Royalties & License Fees	P0901	Franchises services - patents.copy rights, trade marks, industrial processes, franchises etc.
09	Royalties & License Fees	P0902	Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films) .
10	Other Business Services	P1001	Merchanting Services-net receipts (from sale and purchase of goods without crossing the border).
		P1002	Trade related services - Commission on exports/imports.
		P1003	Operational leasing services (other than financial leasing and without operating crew) including charter hire
		P1004	Legal services
		P1005	Accounting, auditing, book keeping and tax consulting services
		P1006	Business and management consultancy and public relations services
		P1007	Advertising, trade fair, market research and public opinion polling services
		P1008	Research & Development services
		P1009	Architectural, engineering and other technical services
		P1010	Agricultural, mining and on -site processing services - protection against insects & disease, increasing of harvest yields, forestry services, mining services like analysis of ores etc.
		P1011	Inward remittance for maintenance of offices in India
		P1012	Distribution services
		P1013	Environmental services
		P1019	Other services not included elsewhere
11	Personal, Cultural & Recreational services.	P1101	Audio-visual and related services -services and associated fees related to production of motion pictures, rentals, fees received by actors, directors, producers and fees for distribution rights.
11	Personal, Cultural & Recreational services.	P1102	Personal, cultural services such as those related to museums, libraries, archives and sporting activities and fees for correspondence courses of Indian Universities/Institutes
12	Government, not included elsewhere (G.n.i.e.)	P1201	Maintenance of foreign embassies in India
12	Government, not included elsewhere (G.n.i.e.)	P1203	Maintenance of international institutions such as offices of IMF mission, World Bank, UNICEF etc. in India.
13	Transfers	P1301	Inward remittance from Indian nonresidents towards family maintenance and savings
		P1302	Personal gifts and donations
		.P1303	Donations to religious and charitable institutions in India
		P1304	Grants and donations to governments and charitable institutions established by the governments
		P1306	Receipts / Refund of taxes
14	Income	P1401	Compensation of employees
		P1403	Inward remittance towards interest on loans extended to non-residents (ST/MT/LT loans)
		P1404	Inward remittance of interest on debt securities - debentures / bonds /FRNsetc,
		P1405	Inward remittance towards interest receipts of ADs on their own account (on investments.)
		P1406	Repatriation of profits to India
		P1407	Receipt of dividends by Indians
15	Others	P1501	Refunds / rebates on account of imports
		P1502	Reversal of wrong entries, refunds of amount remitted for non-imports
		P1503	Remittances (receipts) by residents under international bidding process.
		P1590	Receipts below $10,000 (say Rs 5,00,000)

Annexure III

NEW PURPOSE CODES FOR REPORTING FOREX TRANSACTIONS PAYMENT PURPOSES

Group No.	Purpose Group Name	Purpose Code	Description
00	Capital Account	S0001	Indian investment abroad -in equity capital (shares)
		S0002	Indian investment" abroad -in debt securities
		S0003	Indian investment abroad -in branches
		S0004	Indian investment abroad -in subsidiaries and associates
		S0005	Indian investment abroad -in real estate
		S0006	Repatriation of Foreign Direct Investment in India- in equity shares
		S0007	Repatriation of Foreign Direct Investment in India- in debt securities
		S0008	Repatriation of Foreign Direct Investment in India- in real estate
		S0009	Repatriation of Foreign Portfolio Investment in India- in equity shares
		S0010	Repatriation of Foreign Portfolio Investment in India- in debt securities
		S0011	Loans extended to Non-Residents
		S0012	Repayment of loans received from Non- Residents {Long & medium term loans)
		S0013	Repayment of short term loans received from Non-Residents
		S0014	Repatriation of Non-Resident Deposits (FCNRB/N.RERA etc)
		S0015	Repayment of loans & overdrafts taken by ADs on their own account.
		S0016	Sale of a foreign currency against another foreiqn currency
		S0017	Purchase of intangible assets like patents, copyrights, trade marks etc.
		S0018	Other capital payments not included Elsewhere
01	Imports	S0101	Advance payment against imports
		S0102	Payment towards imports- settlement of invoice
		S0103	Imports by diplomatic missions
		S0104	Intermediary trade
		S0190	Imports below Rs. 500.000- (For use by ECD offices
02	Transportation	S0201	Payments for surplus freight/passenger fare by foreign shipping companies operating in India.
		S0202	Payment for operating expenses of Indian shipping companies operating abroad.
		S0203	Freight on imports - Shipping companies
		S0204	Freight on exports - Shipping companies
		S0205	Operational leasing (with crew) -Shipping companies
		S0206	Booking of passages abroad -Shipping companies
		S0207	Payments for surplus freight/passenger fare by foreign Airlines companies operating in India,
		S0208	Operating expenses of Indian Airlines companies operating abroad
		S0209	Freight on imports - Airlines companies
		S0210	Freight on exports - Airlines companies
		S0211	Operational leasing (with crew) -Airlines companies
		S0212	Booking of passages abroad - Airlines companies
		S0213	Payments on account of stevedoring, demurrage, port handling charges etc.
03	Travel	S0301	Remittance towards Business travel.
		S0302	Travel under basic travel quota (BTQ)
		S0303	Travel for pilgrimage
		S0304	Travel for medical treatment
		S0305	-Travel for education (including fees, lostel expenses etc.)
		S0306	Other travel (international credit cards)
04	Communica-tion Service	S0401	Postal services
		S0402	Courier services
		S0403	Telecommunication services
		S0404	Satellite services
05	Construction Service	S0501	Construction of projects abroad by Indian companies including import of goods at project site
05	Construction Service	S0502	Payments for cost of construction etc. of projects executed by foreign companies in India.
06	Insurance Service	S0601	Payments for Life insurance premium
		S0602	Freight insurance - relating to import & export of goods
		S0603	Other general insurance premium
		S0604	Reinsurance premium
		S0605	Auxiliary services (commission on insurance)
		S0606	Settlement of claims
07	Financial Services	S0701	Financial intermediation except investment banking - Bank charges, collection charges, LC charges, cancellation of forward contracts, commission on financial leasing etc.
		S0702	Investment banking - brokerage, underwriting commission etc.
		S0703	Auxiliary services - charges on operat ion & regulatory fees, custodial services, depository services etc.
08	Computer & Information Services	S0801	Hardware consultancy
		S0802	Software implementation/consultancy
		S0803	Data base, data processing charges
		S0804	Repair and maintenance of computer And software
		S0805	slews agency services
		S0806	Other information services-Subscription to newspapers, periodicals
09	Royalties & License Fees	S0901	Franchises services - patents, copyrights, trade marks, industrial processes, franchises etc.
09	Royalties & License Fees	S0902	Payment for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films)
10	Other Business Services	S1001	Merchanting services –net payments (f rom Sale & purchase of goods without crossing the border).
		S1002	Trade related services - commission on exports / imports
		S1003	Operational leasing services (other than financial leasing) without operating crew, including charter hire
		S1004	Legal services
		S1005	Accounting, auditing, book keeping and tax consulting services
		S1006	Business and management consultancy and public relations Services
		S1007	Advertising, trade fair, market research and public opinion polling Service
		S1008	Research & Development services
		S1009	Architectural, engineering and other technical services
		S1010	Agricultural, mining and on-site processing services - protection against insects & disease, increasing of harvest yields, forestry services, mining services like analysis of ores etc.
		S1011	Payments for maintenance of offices Abroad
		S1012	Distribution services
		S1013	Environmental services
		S1019	Other services not included elsewhere
11	Personal, Cultural & Recreational services	S1101	Audio-visual and related services -services and associated fees related to production of motion pictures, rentals, fees received by actors, directors, producers and fees for distribution rights.
11	Personal, Cultural & Recreational services	S1102	Personal, cultural services such as those related to museums, libraries, archives and sporting activities; fees for correspondence courses abroad.
12	Government not included elsewhere (G.n.i.e.)	S1201	Maintenance of Indian embassies abroad
12	Government not included elsewhere (G.n.i.e.)	S1202	Remittances by foreign embassies in India
13	Transfers	S1301	Remittance by non-residents towards family maintenance and savings
		S1302	Remittance towards personal gifts and donations
		S1303	Remittance towards donations to religious and charitable institutions abroad
		S1304	Remittance towards grants and donations to other governments and charitable institutions established by the governments.
		S1305	Contributions/donations by the Government to international institutions
		S1306	Remittance towards payment / refund of taxes.
14	Income	S1401	Compensation of employees
		S1402	Remittance towards interest on Non-Resident deposits (FCNRB/NRERA/ NRNRD/NRSR etc.)
		S1403	Remittance towards interest on loans from Non- Residents (ST/MT/LT loans)
		S1404	Remittance of interest on debt securities - debentures / bonds / FRNs etc.
		S1405	Remittance towards interest payment by ADs on their own account (to VOSTRO a/c holders or the OD on NOSTRO a/c.)
		S1406	Repatriation of profits
		S1407	Payment/ repatriation of dividends
15	Others	S1501	Refunds / rebates / reduction in invoice value on account of exports
		S1502	Reversal of wrong entries, refunds of amount remitted for non-exports
		S1503	Payments by residents for international bidding
		S1504	Crystallize/Cancel export bills

Annexure-IV

Purpose codes for Cover-page

Purpose Code	Details
S0190	Imports below (Total)
S0191	Imports above (Total)
S1590	Non-Imports below (Total)
S1591	Non-Imports above (Total)
P0100	Exports (Totals (N/P/D + Collection bills Realised during Fortnight + Advance received during Fortnight)
P1590	Non-Exports below (Total)
P1591	Non-Exports above (Total)
P0144	Intermediary Exports (Totals)
S0144	Intermediary Imports (Total)
S0091	Sales to Reserve Bank of India
P0091	Purchase from Reserve Bank of India
S0092	Sales to Other ADs in India
P0092	Purchase from Other ADs in India
S0093	Sales to Overseas Banks/correspondents
P0093	Purchase from Overseas Banks/correspondents
S0094	Credit to vostro a/c of overseas Banks/correspondents
P0094	Debit from vostro a/c of overseas Banks/correspondents
S0095	Sales at branches
P0095	Purchases at branches
P2088	Nostro Mirror/Vostro (debit opening balance)
P2199	Nostro Mirror/Vostro (debit closing balance)
S2088	Nostro Mirror/Vostro (credit opening balance)
S2199	Nostro Mirror/Vostro (credit closing balance)

Annexure - V

Form A2
Application cum Declaration
(To be completed by the applicant)
Application for drawal of foreign exchange

I. Details of the applicant -

II. Details of the foreign exchange required

III. I authorise you to debit my Saving Bank/Current/RFC/EEFC Account No._________________ together with your charges and

Signature

Declaration
(Under FEMA 1999)

I, _________________________ declare that -

* 1) The total amount of foreign exchange purchased from or remitted through, all sources in India during this calendar year including this application is within USD _____________ (USD _________________________ __________________________________________________________only) the annual limit prescribed by Reserve Bank of India for the said purpose.

* 2) Foreign exchange purchased from you is for the purpose indicated above.

(Strike out whichever is not applicable)

Signature
Name _____________

Date:

(The purpose codes are on the reverse)

Annexure -VI

Declaration (under FEMA 1999)

We hereby declare that all forex transactions, as may be entrusted by us to the bank from time to time will be in strict conformity with the prevailing provisions of FEMA, 1999 at the time the transactions are put through.

I/We further declare that the undersigned has/have the authority to give this declaration and undertaking on behalf of the firm/company.

____________________________
Signature of the Applicant
for Foreign Exchange

Place

Date

Applicable when the declaration/undertaking is signed on behalf of the firm/company.

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