(i) Indian shipping companies will be permitted, on application, to maintain foreign currency accounts with banks abroad for retaining foreign exchange earnings by way of freight collections etc. to meet their operating expenses in foreign ports on condition that they will maintain at all times balances not exceeding reasonable fund requirements to meet disbursements at foreign ports subject to such overall limit as may be stipulated by Reserve Bank from time to time as also for meeting expenditure such as P & I Club fees, charter hire payments, ship repairs, dry docking, spares, etc. Any surplus funds should be repatriated to India without delay. Investment of foreign currency balances in any form including placement on call or term deposits with overseas banks is not permitted. Applications for permission to open and maintain foreign currency accounts abroad should be made to the concerned office of Reserve Bank in whose jurisdiction the shipping company is functioning.

(ii) Regulations governing opening of foreign currency accounts abroad by other Indian firms/companies for specific purposes such as for retention of foreign currency subscriptions or proceeds of foreign currency loans raised abroad for financing imports, etc. have been laid down in the respective chapters.