Authorised dealers have been permitted to make advance remittances for import of goods subject to conditions stipulated in paragraph 7A.10. Advance remittances may similarly be required to be made in respect of transactions other than imports e.g. engagement of foreign nationals, consultancy services, charges for advertisement in overseas newspapers/periodicals, specialised training in India/abroad, etc. which are either covered under the powers delegated to authorised dealers or which are being remitted by authorised dealers after obtaining approval in principle from Reserve Bank. It will be in order for authorised dealers to allow advance remittances in such cases after verifying the terms of contract and satisfying other conditions stipulated in the relevant paragraphs of the Manual. A guarantee from an overseas bank of international repute should be obtained from the overseas beneficiary, where the amount of remittance exceeds U.S. $ 15,000 or its equivalent. The authorised dealer concerned should follow up the matter to ensure that the beneficiary of the advance remittance has fulfilled his obligation under the contract/agreement with the remitter in India.
[ANX-I] ANNEXURE I
Guidelines for release of exchange for travel abroad and for other purposes
PART A - TRAVEL ABROAD- Travel abroad by Members of Parliament/State Legislatures (except when travelling abroad on account of their private business or for medical treatment), officials of the Central or any State Government (except when travelling at their own expense), members of official or non-official delegations financed out of funds from the Central or any State Government.
Documentation:
Letter (in duplicate) indicating name, address, nationality and passport number of the applicant, along with the letter of sanction in original from (i) the Ministry of Finance (Department of Economic Affairs), Government of India, New Delhi (in case of officials of State Government and Members of Parliament/State Legislatures) or (ii) the Administrative Ministry of Government of India (in case of officials of Central Government).
Quantum of exchange:
Amount sanctioned by Government in its letter of sanction.
- NOTE:
- Officials of State Government/Union Territory (U.T.), holding ex-officio status in co-operative societies/ public sector undertakings funded by the State/U.T. Governments going abroad in delegation or for participating in exhibitions, workshops, seminars, etc. and also officials going abroad for training under World Bank, etc. aided schemes, will require approval of the Department of Economic Affairs, Ministry of Finance.
- Officials in the office of the Comptroller and Auditor General (C&AG) deputed abroad and personnel of the Indian Audit and Accounts Department (IAAD) on their posting abroad.
Documentation:
Letter (in duplicate) indicating name, address, nationality, passport number of the applicant, along with the letter of sanction in original issued by C&AG.
Quantum of exchange:
Amount sanctioned by C&AG in its letter of sanction.
- Business visits sponsored by firms/companies/organisations in India, journalists deputed on short-term assignments abroad by newspapers/journals and self-employed professionals like Solicitors, Chartered Accountants, undertaking visits abroad in connection with their profession.
Documentation:
Letter (in duplicate) from the sponsoring firm/company/ organisation [from the applicant in cases of self-employed professionals] indicating name, address, nationality, passport number of the traveller, duration and nature of visit to each country, exchange required and certifying that the expenses are being borne by them. In case exchange is to be released at special scale, a declaration from the sponsoring firm/company/organisation that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at special scale.
Quantum of exchange:
| (i) | (a) Special scaleFor Chief/Senior Executive like Chairman, Managing/ Executive Director, etc. |
Up to U.S. $ 500 per day for a period not exceeding 45 days |
| |
(b) General Scale For others |
Up to U.S. $ 350 per day for a period not exceeding 45 days |
(ii) Entertainment Allowance
- Chief Executives of Export/Trading/Star Trading Houses/Super Star Trading Houses not exceeding U.S.$ 5000 per trip and :
- Officials of other firms/companies etc.- not exceeding U.S. $ 2000/-.
NOTE: A. If the amount of exchange asked for does not exceed U.S.$5000 (inclusive of entertainment/secretarial etc. expenses), it may be released regardless of the duration of the visit and the per diem rate of exchange.
B. See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.
C. Exchange may also be released to foreign nationals if the visit is sponsored by the company/firm/organisation in India where they are employed on regular basis.
- Travel abroad by members of delegations sponsored by Trade Bodies like Chambers of Commerce, ASSOCHAM, FICCI, FIEO, etc.
Documentation:
Letter (in duplicate) from the sponsoring firm/company/ organisation indicating name, address, nationality, passport number of the traveller, purpose and duration of visit to each country, exchange required and certifying that the expenses are being borne by the sponsoring firm, company, etc. In case exchange is to be released at special scale, a declaration from the sponsoring firm/company/organisation that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at special scale.
Quantum of exchange:
| (i) | (a) Special scaleFor Chief/Senior Executives |
Up to U.S. $ 500 per day for a period not exceeding 45 days |
| |
(b) General Scale For others |
Up to U.S. $ 350 per day for a period not exceeding 45 days |
(ii) Entertainment Allowance:
Not exceeding U.S.$ 5000 to the leader of the delegation.
NOTE: A. If the amount of exchange asked for does not exceed U.S.$ 5000 per member, it may be released regardless of the duration of the visit and the per diem rate of exchange
B. See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.
- Travel abroad for business purposes by officials of public and private sector banks, branches of foreign banks in India, State and Urban Co-operative banks which are authorised dealers and other financial institutions like IDBI, UTI, NABARD, NHB, Exim Bank, ICICI, etc.
Documentation:
Letter (in duplicate) by the sponsoring bank/institution indicating name, address, nationality, passport number of the official, purpose and duration of visit to each country, exchange required and certifying that the expenses are being borne by the organisation. In case exchange is to be released at Special scale, a declaration from the sponsoring bank/institution that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at special scale. Approval of the Ministry of Finance, Government of India should be obtained and certified copy thereof should be attached to the application, only if the visit abroad of the Chief Executive Officers of public sector banks/financial institutions exceeds the number of days indicated in Ministry of Finance (Banking Division), Government of India notification F.No. 18/1/97-BOI dated 11th December 1997 (Annexure IA)
Quantum of exchange:
| (i) | (a) Special scaleFor Chief/Senior Executive like Chairman, Managing/ Executive Director, etc. |
Up to U.S. $ 500 per day for a period not exceeding 45 days |
| |
(b) General Scale For others |
Up to U.S. $ 350 per day for a period not exceeding 45 days |
Note: See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.
(C) Entertainment allowance
| (i) | Chairman/Managing/Executive Director | Not exceeding U.S.$ 5000/- |
| (ii) | Other officials | Not exceeding U.S. $ 2000/- |
- Participation in international conferences/seminars of scientific, technical or educational nature.
Documentation:
Letter (in duplicate) from the sponsoring institution (from the applicant in cases of self-employed professionals) indicating name, address, nationality and passport number of the participant, duration of visit to each country, exchange required and certifying that the expenses are being borne by the organisation. The brochure giving full particulars of the Conference/Seminar shall also be submitted along with the application. In case exchange is to be released at special scale, a declaration from the sponsoring institution that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at Special scale.
Quantum of exchange:
(i) Registration fee as per brochure.
(ii) Up to U.S.$ 500 per day in case the traveller is Chief/Senior Executive like Chairman, Managing / Executive Director, etc. or up to U.S.$ 350 per day in other cases, for the duration of the conference/ seminar, plus two days. If the registration fee includes boarding and lodging expenses, U.S.$ 500 only may be released towards incidental expenses.
NOTES: A. If the amount of exchange asked for does not exceed U.S.$ 5000, it may be released regardless of the duration of the visit and the per diem rate of exchange.
B. If participation in the conference/ seminar is proposed to be combined with a business visit, exchange shall be released only for the actual number of days of conference/seminar.
C. See paragraph 8A.1(ii) for release of exchange in excess of the scales prescribed at (ii) above.
- Specialised training/study tour sponsored by institutions or undertaken by professionals like Doctors
Documentation:
Letter (in duplicate) from the sponsoring organisation (from the applicant in cases of self-employed professionals) indicating the name, address, nationality, passport number of the traveller, the details of training/study tour, country to be visited and exchange required along with a letter from the overseas institution/s agreeing to provide necessary facilities for the training/study tour.
Quantum of exchange:
(a) Course fee (applicable to training only)
Up to U.S.$ 5000 per person on production of documentary evidence.
(b) Maintenance expenses
U.S.$ 300 per day for a period not exceeding 30 days.
NOTES: A. If the amount of exchange asked for does not exceed U.S.$ 5000, it may be released regardless of the duration of the visit and the per diem rate of exchange.
B. If the course fee is inclusive of maintenance expenses, U.S.$ 50 per day (for incidental expenses) may be released for the actual period of training/study tour.
C. See paragraph 8A.1(ii) for release of exchange in excess of the scales prescribed at (b) above.
- Business visits against foreign hospitality.
Documentation:
Letter (in duplicate) from the applicant indicating name, address, nationality and passport number of the traveller, country of visit, period of stay, name and address of the host, purpose of visit, etc. and documentary evidence in support of full hospitality.
Quantum of exchange:
Up to U.S.$ 500/- if the visit is for a period not exceeding 10 days. If the period of visit exceeds 10 days, U.S.$ 50 per day up to a maximum period of 45 days.
Note: See paragraph 8A.1(ii) for release of exchange in excess of the scales prescribed above.
- Employment abroad
Documentation:
Letter (in duplicate) indicating name, address, nationality and passport number of the applicant together with the letter of appointment from the overseas organisation in original (with a copy).
Quantum of exchange:
Up to U.S.$ 2,500 per person.
- Emigration
Documentation:
Letter (in duplicate) indicating name, address, nationality and passport number of the applicant, country of emigration and enclosing documentary evidence in support of emigration.
Quantum of exchange:
Up to U.S.$ 3,000/- per person/per member of family or the amount required by the country of emigration subject to production of documentary evidence in support thereof from the Mission in India of the concerned country.
- Medical Treatment
Documentation:
Form TRM 1
Quantum of exchange:
(a) For patient
(i) Hospitalisation
Not exceeding the estimate given by the overseas doctor/hospital.
(ii) Pre/Post hospitalisation
The period recommended in form TRM 1 subject to a maximum of 2 months @ U.S.$ 150 per day.
(b) For attendant
@ U.S.$ 150 per day for the period of stay of the patient.
Special conditions:
Exchange shall be released subject to the condition that documentary evidence in support of the expenditure incurred on hospitalisation is submitted to the authorised dealer promptly on return to India. Authorised dealer should verify it and thereafter preserve it for audit/inspection.
NOTE: A. In the case of persons who have fallen ill after proceeding abroad for business etc. visits and who are in need of additional exchange, authorised dealers may release additional exchange for medical treatment on getting a certificate in form TRM 2 signed by the attending doctor/hospital abroad subject to submission of bills/vouchers in support of expenditure incurred on medical treatment on return of the person concerned to India.
B. See paragraph 8A.1(ii) for release of exchange 3in excess of the scales prescribed at (a)(ii) and (b) above and/or for longer duration.
- Medical check-up/consultation abroad Documentation:
Letter (in duplicate) giving the necessary details.
Quantum of exchange:
i) For check up/consultations
- Up to U.S.$ 1,000
ii) Pre/post consultation/check up
a) U.S. $ 150 per day to the patient for a period not exceeding seven days.
b) U.S. 150 per day to the attendant for the period up to which exchange is released to the patient provided a certificate from the attending doctor in India is produced to indicate the need for attendant to accompany the patient.
Note: See paragraph 8A.1(ii) for release of exchange in excess of the above referred per diem scales.
- Apprenticeship training under a foreign collaboration agreement etc. of persons employed in a manufacturing concern.
Documentation:
Letter (in duplicate) from the sponsoring organisation indicating the name, address, nationality, passport number of the trainee, the details of training and exchange required along with a letter from the overseas organisation indicating the facilities for the training.
Quantum of Exchange:
Up to U.S.$ 2000 per month up to 3 months.
Note: See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.
- Training abroad where the entire cost of training is borne by the overseas organisation/institution.
Documentation:
Letter (in duplicate) from the sponsoring organisation indicating name, address, nationality and passport number of trainee, amount of exchange required, name and address of overseas organisation/institution, nature, period and country of training, supported by documentary evidence giving details of facilities offered for the training and stating that the entire expenses of lodging, boarding, etc. will be met by the overseas organisation/institution.
Quantum of exchange:
Up to U.S.$ 500 if the period of training does not exceed 10 days. If the period of training exceeds 10 days, U.S.$ 50 per day up to a maximum period of 30 days.
Note: See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.
- Basic Travel Quota (BTQ)
Eligibility
Resident Indian citizens are eligible under the scheme of Basic Travel Quota to avail of foreign exchange up to U.S.$ 3,000 or its equivalent for undertaking one or more private visits to any country abroad (except Nepal and Bhutan) in any calendar year. Foreign nationals permanently resident in India are also eligible to avail of this quota provided they are not availing of facilities for remittance of their salary, savings etc. abroad (cf. paragraphs 11D.2 and 11D.3 of ECM).
Documentation
Letter (in duplicate) giving particulars such as name, address, nationality, country/ies of visit, number and date and place of issue of passport of the traveller alongwith the passport and containing declaration that the exchange applied for together with the exchange already availed of, if any, under the Basic Travel Quota during the calendar year does not exceed U.S.$ 3,000 or its equivalent. If the applicant is a foreign national permanently resident in India he/she should give an undertaking on the application itself that he/she is permanently resident in India and is not availing of facilities for remittance of his/her salary, savings, etc. abroad in terms of the existing Exchange Control regulations.
Quantum of exchange:
Up to U.S.$ 3000 per person per calendar year.
Special Conditions:
(i) Passport of the traveller should be verified by the authorised dealer to ensure his eligibility for release of exchange under BTQ.
(ii) Passport of the traveller should be endorsed with the amount of exchange sold and notation Basic Travel Quota under proper authentication with stamp and date. A photocopy each of the relevant pages of the travelers passport where personal particulars are available for example, name, address, date of birth, signature, photograph and number, date, place of issue and validity period of passport, visa for country of visit and the pages where endorsement for BTQ has been made.
(iii) In the event of cancellation of the journey and surrender of exchange to the authorised dealer, the endorsement on the passport relating to the exchange sold may be cancelled by the authorised dealer under his stamp and signature with date.
Travel to Neighbouring countries namely Pakistan, Bangladesh and Myanmar by land route
Authorised dealers may release exchange to travellers proceeding to Pakistan, Bangladesh or Myanmar by land route up to the amount asked for but within the eligible limit of U.S.$ 3000 per person provided the traveller is eligible for release of exchange under BTQ. The journey ticket need not be insisted upon. All other conditions regarding application, verification of passport for eligibility, limit for sale of foreign currency, endorsement on travellers passport for sale of foreign exchange under BTQ, etc. remain unchanged.
- Studies Abroad
Application :
Form TRS.
Eligibility :
Following categories of students are eligible for release of exchange for studies abroad provided they have secured admission to an overseas university/college/educational institution or an articleship from a firm of Chartered Accountants in U.K.
(i) Students holding Indian passports.
(ii) Students holding foreign passports dependent on their parents resident in India.
NOTES: A. Exchange facilities may be made available to eligible students who had gone abroad without availing exchange facilities from India for the remaining duration of the course.
B. Exchange may also be released to students for continuing the same course for which exchange was released earlier or for any other course at the same or any other educational institution.
C. It is not necessary that full exchange entitlement for the entire year or duration of the course is drawn from the same authorised dealer. Students are free to draw part of their foreign exchange entitlement from one authorised dealer and part from another .
D. Deposit towards advance tuition fees/maintenance may be remitted if insisted upon by the overseas institution. Authorised dealer should obtain an undertaking from the student that in the event of his/her not joining the course he would obtain the admissible refund and repatriate it to India.
Duration of Course :
The actual duration of the course.
Quantum of exchange :
(a) U.S.$ 30,000 per annum towards tuition fees, maintenance expenses, books etc. Exchange in excess of U.S.$ 30,000 (at actuals) may be released to the extent of the requirement of exchange indicated in the letter from the overseas institution. If the student is in receipt of scholarship, the amount thereof may be adjusted against the amount of exchange admissible to him, only to the extent desired by the applicant.
(b) In cases where the student is in receipt of full sponsorship from a close relative, he will be eligible for full exchange, if he desires not to avail of the relatives hospitality.
(c) In case letter of admission from overseas university does not indicate the estimate of exchange requirements, exchange up to U.S.$ 15,000 may be released subject to adjustment while releasing further exchange.
(d) Exchange may be released for a period not exceeding one year at a time.
(e) Exchange may be released in the form of currency notes not exceeding U.S.$ 500 and balance amount may be released in the form of travellers cheques/draft/T.T. in favour of the student or the educational institution, as desired by the applicant. Students going to Russia or other Republics of CIS countries may be released exchange in the form of currency notes for a period up to one year.
Maintenance of Records, Files, etc.:
Authorised dealers should preserve the case papers duly indexed in student-wise files/folders for the purpose of internal audit/inspection.
PART B - OTHER PURPOSES I. Consular fees
Remittance of visa fees and other consular collections of foreign diplomatic missions in India
Documentation:
Form A2
Special Conditions:
A certificate as under should be appended on form A2 by the remitting mission.
"We hereby certify that the remittance represents visa fees/other consular collections made by us and the amount so far remitted during the current year is Rs....... The remittance during the previous year viz...... aggregated Rs......."
NOTE: If there is a significant increase in the amount to be remitted as compared to the previous year, a report should be submitted to Reserve Bank by the authorised dealer after ascertaining the reasons for the increase.
IIA. Casual Gift Remittance
Gift remittance to persons residing abroad
Documentation
Form A2 and declaration as under
I hereby declare that including the remittance of ................................... now applied for, I have
(currency and amount)
not remitted to ........................... ........... aggregate amount exceeding the prescribed limit of
(Name of the beneficiary)
U.S.$ 1,000 in the calendar year.........
Place: Signature _________________________________
Date : Name of the applicant________________________
Address___________________________________
Quantum of Exchange
Upto U.S.$ 1,000 per calendar year per person/corporate for each beneficiary.
B. Maintenance Expenses Abroad
Maintenance expenses to close relatives namely son / daughter / father / mother / brother / sister / grand father / grand mother permanently residing abroad.
Documentation : Form REM and form A2.
Quantum of exchange : Up to U.S.$ 5000 per calendar year per beneficiary by a family unit
III.A. Royalty on Books
Royalty by Indian publishers on Reprint of foreign books and other copyright literature other than those which are on the proscribed/banned list for imports.
Documentation:
Form BRT and form A2
Quantum of exchange:
15% of Indian published price
Special conditions:
(i) Copy of Reprint Agreement concluded should be obtained
(ii) Amount of remittance should be net of Income-tax. In case gross amount of royalty exceeds U.S.$ 5,000/-, certificate from a Chartered Accountant on form BRT should be obtained.
(iii) Advance remittance towards royalty may be allowed up to U.S.$ 3,000/- if provided for in the agreement subject to adjustment against actual royalty accruals.
III.B Royalty on Reproduction of Audio Software
Royalty by Indian music company for reproduction of copyright music recorded by overseas company (other than those on the prescribed/banned list for imports).
Documentation:
i) Form MRR and Form A2
ii) Certified copy of Agreement
iii) Undertaking from the remitter regarding payment of Income-tax with a certificate from the Accountant in the prescribed form. (cf.paragraph 3 B.10)
(iv) If the royalty exceeds 20% and remittance is not being made from funds held in EEFC account, theapplicant may be advised to obtain specific approval from the Department of Electronics, Government ofIndia, New Delhi.
Special Conditions:
(1) Copy of Agreement for reproduction of copyright music between Indian music company and overseas music company should be verified.
(2) The retail sale price of the records/cassettes should be computed by deducting applicable local taxes and packaging charges at the rate not less than 6.5% in case of records and CDs and 10% in case of magnetic tape cassettes from the retail price printed on the records/cassettes.
(3) Where the rate of royalty exceeds 20%, remittances may be allowed on verification of the approval from the Department of Electronics, Government of India, New Delhi. A copy of the approval should be kept on record.
(4) Authorised dealers should keep a systematic record of the remittances allowed alongwith declarations in MRR which should be made available to their Internal Auditors/ Reserve Bank of India for inspection.
IV. Royalty on computer software imports
Payment of royalty by Indian software reproducers to overseas copyright holders for reproduction of computer software.
Documentation:
(i) Form SRT and form A2
(ii) Certified copy of agreement
(iii) Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10).
Quantum of exchange:
(i) Up to 30 (thirty) per cent of the Indian published price.
(ii) If there is no Indian price, it may be arrived at by converting the list price in the currency of the country of publication at market rate.
(iii) If the royalty exceeds 30 per cent, the applicant may be advised to obtain specific approval from the Department of Electronics, Government of India. Remittance may thereafter be allowed in accordance with the terms approved by the Government of India.
Special conditions:
(i) Authorised dealer should ensure with reference to documentary evidence that the amount of royalty is in conformity with the terms and conditions set out in the agreement.
(ii) Applicant may be advised to obtain permission from the Department of Electronics, Government of India, wherever necessary.
(iii) While allowing first remittance towards royalty under the agreement, applicant should be advised that all subsequent remittances should also be made through the same branch of the authorised dealer.
(iv) Advance remittance of royalty on duplication of software should not be allowed without specific permission of Reserve Bank.
(v) Form SRT and Form A2 should be sent to Reserve Bank with the R Return.
V. Other Remittances
Remittances towards cost of services including subscription to newspapers,magazines, etc.rendered/supplied by overseas parties to individuals, firms, companies or organisations in India for purposes other than for which specific provisions e.g., agency commission on exports, advertisements on overseas TV media, etc. exist elsewhere in this Manual. Authorised dealers may allow reimbursement/remittance against claims received towards subscriptions to foreign magazines, journals, etc. and access fee for Internet related services through Websites based abroad on behalf of ICC holders.
Documentation:
Form A2 and original invoice/bill/debit note, etc. from the overseas company/organisation indicating type/nature and cost of service(s) supplied to the applicant.
Quantum of Exchange:
Upto U.S. $ 25,000.
Special Conditions:
i) The applicant is a customer of the authorised dealer and the latter is satisfied about the bona fides of the remittance towards services supplied.
ii) Subscription to (a) magazines, etc. which are on the proscribed/banned list and (b) football pools, sweepstakes or lotteries should not be allowed.
iii) Remittances towards call back services provided by the overseas communication organisations direct or through their agents in India should be permitted only if the applicant is authorised/licensed by the Department of Telecommunications. This facility should, however, not be allowed to organisations which have been permitted by the Department of Telecommunications to provide only information services on marketing etc. on collect call basis.
iv) Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.
(v) In case the applicants are not regular customers of an authorised dealer, remittance of exchange upto U.S.$ 1,000 (U.S. dollar one thousand) per transaction may be allowed provided authorised dealer is satisfied about the bona fide of the applicant/remittance.
(vi) Authorised dealers may allow remittance towards consultancy fees to overseas agencies engaged in processing/sponsoring of applications of Indians for emigration to the concerned country subject to verification of suitable documentary evidence in support of payment.
VI. Donations:
Remittance of donations by residents to Charitable/educational/religious/cultural organisations abroad.
Documentation:
Letter in duplicate with documentary evidence such as brochure indicating the name, address and activities of the organisation, the type of services offered etc. and purpose/s for making gifts/donations.
Quantum of Exchange:
Up to U.S.$ 1000 in a calendar year per person.
VI. A. Donation for Victims of Calamities abroad
Remittance towards donations collected in India for relief to victims of calamities like floods, earthquakes etc. to organisations / institutions abroad affiliated to inter governmental bodies like United Nations without any ceiling.
Documentation
Letter in duplicate with documentary evidence such as brochure indicating the name, address and activities of the Organisation, the type of services offered etc. and purpose/s for making donations.
VII. Electronic Data-base costs
Remittance of actual charges payable towards data base costs, computer connect/time charges, software charges, hit charges, downloading of information from internet etc.
Documentation:
a) Form A2
b) Invoice or debit notes from the overseas data-base centres
Special condition:
Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.
Note A) Foreign banks operating in India and desirouls of remitting proportionate expenditure on electronic data base cost incurred by their Head Offices, may make such remittances to the latter, on the basis of a copy of invoice raised by the service provided indicating details of proportionate bifurcation of such charges to be paid by the Indian branches of the bank concerned , provided approval from Department of Banking Operations and Development , Reserve Bank of India, Central Office, Mumbai for the arrangement has been obtained.
B) Remittance upto U.S.$ 250 or its equivalent may be allowed by authorised dealers if the applicant is not in a position to produce documentary evidence such as invoice or debit note from the overseas company provided they are satisfied about bona fides of the applicant/remittance
VIII. Claims against Indian Tour Operator/Travel Agent
Documentation
Letter in duplicate from the Indian Tour Operator/Travel Agent indicating total tour cost in respect of which the claim is preferred together with documentary evidence indicating details of receipt of advance payment for individual/group tour and letter from foreign tourist/tour operator seeking the claim and indicating reasons therefor.
Quantum of Exchange
For individual or group tours
Up to 10% of the tour cost or U.S.$ 5,000 whichever is higher.
IX. Advertisements in Print Media Abroad or on Internet
Remittance of the actual cost of advertisements in print media abroad such as overseas newspapers/periodicals or on Internet by firms/companies/organisations as well as banks/financial institutions in India.
Documentation
(a) Form A2
(b) Invoice/bill from the overseas publisher
(c) Clippings of the advertisements
(d) Undertaking/certificate regarding payment of income-tax (cf. paragraph 3 B.10)
(e) In the case of advertisements released by State Government Departments / undertakings approval letter from the Ministry of Finance (Department of Economic Affairs), Government of India, New Delhi should be called for.
Special condition:
Certified copy of the documentary evidence i.e. invoice/bill in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.
NOTE: Authorised dealers may allow remittance in advance towards cost of advertisement in print media or on Internet, out of EEFC accounts of the advertiser concerned provided the overseas agency insists upon advance remittance and an undertaking has been obtained from the applicant that he would submit documentary evidence in support of publication of advertisement within 3 months from the date of remittance. Authorised dealers should follow up for submission of documentary evidence, with the remitter.
X. Maintenance/Annual Services Charges for Imported Machinery/Software
Remittance for providing maintenance/support services for imported machinery or softwares, by overseas companies to Indian importers.
Documentation:
(a) Form A2
(b) Original invoice from the overseas company indicating the amount of charges, nature of services rendered and description of machinery/equipment/software imported.
(c) Copy of the relative contract/agreement specifying the terms of payment and providing maintenance/servicing of imported machinery/software.
(d) Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10).
Special conditions
Authorised dealers should ensure that the machinery/equipment/software has been actually imported into India with reference to appropriate documentary evidence. Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.
XI (A). Feasibility/Pre-feasibility Studies for Projects in India
Remittance of charges for conducting Feasibility/Pre-feasibility studies, for projects to be set up in India, to overseas consultants/agencies.
Documentation
(a) Form A2.
(b) Original invoice from the overseas company indicating the nature of services rendered.
(c) Certified copy of contract specifying the terms of payment.
(d) Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10).
(e) An undertaking from the applicants that they have complied with the provisions of Research and Development Cess Act, 1986, if applicable.
Special Conditions
Authorised dealers should obtain a confirmation from the applicant company that the relative study report has been received by it and certified copy of the documentary evidence in support of remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.
XI(B) Architectural services provided by foreign architects
Remittance of charges for architectural services provided by foreign architects to Indian companies engaged in development of real estate and housing in India subject to the documents and special condition enumerated under item XI(A) above.
Quantum of Exchange
Up to U.S.$ 1,00,000.
XI (C). Feasibility studies for Projects Abroad
Remittances to overseas consultancy organisations for conducting feasibility/pre-feasibility studies for projects to be set up abroad by Indian companies in respect of their proposed joint venture/wholly owned subsidiary abroad.
Documentation
a) Form A2
b) Certified copy of contract specifying the terms of payment.
c) Invoice from the overseas consultancy organisation indicating the nature of and charges for the feasibility study.
d) Applicants Undertaking and Accountants Certificate regarding payment of income-tax in the prescribed form.
e) A declaration from the applicant that the assignment for which payment is being made has been completed.
Quantum of Exchange
Upto U.S. $ 100,000.
NOTE : For remittance in excess of U.S. $ 100,000, please see instructions contained in paragraph 9 A.7(i).
XII. Training/Coaching Expenses for Sports Activities
Indian sportspersons undertaking training in sport activities abroad or engagement of overseas coaches/trainers for coaching of sportspersons in India.
Documentation:
(a) Form A2
(b) For undertaking training abroad
(i) Letter (in duplicate) giving particulars such as name, address of the applicant, country, period and nature of training in sport activity proposed to be undertaken.
(ii) Letter of invitation/offer from the overseas party indicating inter alia, the nature of sport activity and quantum of exchange required.
(c) For engagement of overseas coaches/trainers
(i) Original contract/agreement/correspondence with overseas coaches/trainers with two certified copies thereof.
(ii) Original invoice from the overseas party with two certified copies thereof.
(iii) Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10)
Special Condition
Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.
Quantum of exchange:
Actuals as indicated in the letter of invitation/offer.
XIII. Remittance of Prize, Sponsorship Money for Sports
Documentation
Form A2
Letter (in duplicate) from the applicant giving particulars of nature of sport activity, name and address of the overseas party/Indian sponsorer, amount of foreign exchange required.
Letter of offer or Memorandum of Understanding or Agreement entered into for the relevant sport activity and foreign exchange required.
Quantum of Exchange
Upto U.S.$ 100,000 (U.S. dollars one lakh) or its equivalent if the applicant is a recognised International/National/State level sports body.
Upto U.S.$ 25,000, in each case, in respect of cases not covered by (a) above.
Special conditions
Certified copies of the documentary evidence submitted in support of the remittance should be retained by authorised dealers for audit/inspection.
NOTE: Requests for release of foreign exchange in excess of U.S.$ 100,000 or U.S.$ 25,000, as the case may be, may be referred to Reserve Bank.
XIV. Fees for ISO Certification
Authorised dealers may allow remittances towards fees payable for ISO certification for products of Indian firms/companies.
Documentation
(i) Form A2
(ii) Invoice from the overseas accredited agency indicating details of product(s), fees payable for ISO certification.
Quantum of Exchange:
Actuals as per invoice.
NOTE: Authorised dealers should, however, ensure that in case the overseas accredited agency in question had engaged the services of Indian firm/company to conduct the survey/inspection, the latter has been/would be paid by the overseas accredited agency in foreign exchange through normal banking channel for the services rendered.
XIVA. Registration of Patents/Trade Marks
Authorised dealers may allow remittances towards registration charges payable to overseas Governments/Regulatory Authorities/International Organisations for registration of Patents/Trade Marks.
Documentation
(i) Form A2
(ii) Invoice /Documents from the overseas registering authorities indicating charges payable for registration or renewal of registration of Patent/Trade Mark.
Quantum of Exchange
Actuals as per invoice/documents
XV. Other Sundry Remittances
Authorised dealers may allow the following types of remittances on production of appropriate documentary evidence as indicated against each item.
| Type of remittance | Documentary evidence |
|---|
| i) Remittance by Indian courts in connection with execution of commission/letters of request. | Court order indicating amount of remittance. |
| ii) Remittance of alimony | Court order indicating the amount of alimony. |
| iii)Remittance of lease/rental charges for hiring web-space from foreign web servers and E-mail service providers | a) Invoice from the overseas beneficiary
b) Applicants undertaking and Accountants certificate regarding payment of Income tax in the prescribed from |
| (iv)Remittance of sale proceeds of imported cars sold by foreign diplomats/missions of State Trading Corporation of India (STC) | Letter from STC in support of the sale price of the car. |
| (v) Remittance of sale proceeds of imported cars sold by diplomats/missions in India to another diplomat | a) Documentary evidence in support of the sale price of the car
b) Documentary evidence to show that the payment by the purchaser was made out of funds brought from abroad in free foreign exchange or out of remittable funds |
| vi) Remittance of net amount of bonus to Indian employees posted abroad by Indian firms/companies | a) Documentary evidence in support of the remittable amount
b) Applicants undertaking and Accountants certificate regarding payment of income-tax in the prescribed form |
| vii) Remittance for import of Prototypes developed abroad | Invoice from the overseas company with a copy of agreement/correspondence exchanged |
- NOTE:
- The import of prototype should be in conformity with the current Exim Policy. Advance remittance, if any, shall be subject to the provisions of paragraph 8C.10 of ECM.
[ANX-IA] Foreign visits by the wholetime directors of public sector banks and financial institutions
F.No. 18/1/1997.B.O.I.
Government of India,
Ministry of Finance
Department of Economic Affairs
(Banking Division)Jeevan Deep Building,
Sansad Marg,
New Delhi -110 001.
Dated the 11, December ,1997
To,
| 1. Chairman/Managing Director State Bank of India, Central Office, Mumbai | 2. Chairman, Industrial Development Bank of India, Head Office, Mumbai | 3. Chairman/Managing Director, National Bank for Agricultural and Rural Development, Ltd., Head Office, Mumbai | 4. Managing Director, Export-Import Bank of India, Head Office, Mumbai
|
| 5. Chairman and Managing Director, National Housing Bank, Head Office , New Delhi | 6. Chairman and Managing Director, Industrial Investment Bank of India, Head Office, Calcutta | 7. Chairman and Managing Directors and Executive Directors of 19 Nationalised Banks |
Subject : Foreign visits by the wholetime directors of public sector banks and financial institutions
As per the existing terms and conditions of appointment issued by the Government of India wholetime directors of public sector banks and financial institutions are required to obtain prior permission of the Government for undertaking any visit abroad for official purpose. Such visits are undertaken for reviewing the operations/performance of the banks overseas branches/offices, attending seminars, conferences, workshops, meeting of World Bank/IMF/ADB and other international bodies, meeting the foreign correspondent banks, overseas clients, promotion of public issues etc. A copy of such requests is to be sent to Reserve Bank of India . On return from such visits they are required to submit a report on the foreign tour to the Central Government and Reserve Bank of India. However, in the event of their personal visit abroad, prior intimation only is required to be sent to the Government.
2. The matter has been reconsidered by the Central Government in the context of granting more autonomy to the Public Sector Banks and Financial Institutions. It has now been decided that prior approval of the Central Government will not be required for foreign visits for periods (excluding travel time as indicated below)
| | Category of post(s) | Banks having more than 10 branches/offices abroad | Banks having 10 or less branches/ offices abroad | Banks having no branches/offices abroad |
| a) | I) Chairman State Bank of India
II) Chairmen and Managing Directors of nationalised banks | 20 days in a calendar year | 10 days in a calendar year | 7 days in a calendar year |
| b) | I) Managing Directors, State Bank of India
II) Executive Directors of nationalised banks(with the approval of Chairman/ CMD) | 10 days in a calendar year | 5 days in a calendar year | 4 days in a calendar year |
In the case of the wholesome directors of financial institutions, prior approval of the Central Government would not be required for such foreign visits as indicated below:-
| a) | I) Chairman and Managing Director, Industrial Development Bank of India
II) Chairman, National Bank for Agriculture and Rural Development
III) Chairman and Managing Director, National Housing Bank
IV) Chairman and Managing Director, Industrial Investment Bank of India Ltd.
V) Managing Director, Export-Import Bank of India | 15 days in a calendar year |
| b) | Managing Director, National Bank for Agriculture and Rural Development (with the approval of Chairman) | 8 days in a calendar year |
3. The above wholetime directors shall keep their Board of Directors, Central Government and Reserve Bank of India informed of their visits which are within the above prescribed limits. Prior to undertaking the visits during Parliament session, it may be ensured that prior intimation is sent to Government at least 10 days in advance. In cases where it is proposed to undertake any foreign visit in excess of the above prescribed limits, prior permission of the Central Government as hitherto may be obtained. In regard to leave during foreign visits and the wholetime directors being accompanied by their spouses during such visits the existing instructions shall apply.
4. The receipt of this letter may kindly be acknowledged.
Yours faithfully,
Sd/-
(Sudhir Shrivastava)
Director
[ANX-II] ANNEXURE II
International Credit Cards (ICCs) (Paragraph 8A.2)
A. Instructions to card issuing banks or their subsidiaries in India
(i) Banks and their subsidiaries may issue International Credit Cards (ICCs) to residents . They are also free to issue single card valid in India, Nepal and Bhutan as well as other countries provided they have required mechanism in place to seggregate rupee transactions ( i.e. transactions in India, Nepal and Bhutan) and foreign currency transactions arising out of use of such cards. In such cases, however, the card should bear superscription " Not valid for payment in foreign exchange in Nepal and Bhutan".
(ii) The card issuing banks / subsidiaries should invariably obtain an undertaking from the applicant, before issue of ICC the utilisation of the card would be strictly in accordance with the Exchage Control Regulations , and in the event of any failure on the part of the card holder to comply with the regulations, he would be liable for action under FERA 1973.
(iii) The card issuing banks /susbsidiaries can accept payments directly from the cardholders in Indian Rupees towards the settlement of bills /invoices drawn in foreign exchange .
(iv) Remittances towards settlement/reimbursement of ICC dues should be made through an authorised dealer.
(v) The card issuing bank/subsidiary need not insisit on submission of documentary evidence like invoice/bills etc. if the remittance involved is less than U.S.$ 250 or its equivalent and the authorised dealer is satisfied about the bonafides of the remitter and the purpose of remittance.
(vi) In case the amount of claim on account of use of ICC during visits abroad exceeds the applicants entitlement the card issuing bank /organisation should provide the reimbursement and report the matter to the Regional Office of the Exchange Control Department giving full details. However, under no circumstances reimbursement should be delayed or refused on the grounds of excess drawings.
(vii) ICC can also be issued to software engineers going abroad on software assignments provided the claims for such cards are met out of the foreign currrency accounts of the engineers concerned or from EEFC balances of the employer in India.
(viii) ICCs should not be issued to residents going abroad on employment and or emigration.
B. Conditions governing use of ICCs
i) Residents are free to use ICCs for payments in Rupees or foreign exchange for goods and services procurred in India .
ii) ICCs can also be utilised by residents for making personal remittance which are permitted under the extant Exchange Control Regulations subject to the applicable ceilings , if any, and compliance with conditions and documentation prescribed for the purpose concerned.
iii) ICCs issued in India are not valid for payment in foreign exchange in Nepal and Bhutan .
iv) Residents going abroad are free to use ICCs for all bonafide purposes including the purchase of goods for personal use provided , the total exchange drawn during the trip abroad does not exceed their entitlement. Import of goods so purchased abroad into India would be governed Baggage Rules/ Exim Rules in force. The entitlement of exchange should be ascertained from the authorised dealer through whom reimbursement would be provided. The residents may , if they so desire draw foreign exchange against ICCs in the form of foreign currency notes/travellers cheques to the extent of their entitlement from an authorised dealer/full -fledged money changer. Sale of such foreign currency notes/travellers cheques out of entitlement would be governed by extant regulations and would be subject to applicable ceilings. Exchange sold in the form of currency notes/travellers cheques should be endorsed on the passport.
v) Residents who have been issued ICCs and are going abroad for employment or on emigration are not permitted to use it for drawing exchange . They should surrender their ICCs before they proceed abroad on employment /emigration.
vi) ICCs can also be used for the following purposes:
a) Import of software through Internet
b) Fees for training or education of scientific/technical nature through Internet.
c) Registration of Internet domain name, hosting charges for web sites /.home pages overseas and access fees for Internet related services through website.
d) Advance payment not exceeding U.S.$ 15,000 for import of software /database through Internet may also be allowed. The card holder should furnish the details of software/database obtained through the Internet , charges to be paid to the overseas organisation for downloading the software/data and a declaration having received the software/data for which the payment was made through ICC.
(vii) The ICC cannot be used for effecting remittances for the purposes for which release of exchange is not permissible under the extant regulations like subscription to (a) magazines etc. which are on the proscribed/banned list and (b) football pools , sweepstakes or lotteries etc.
(viii) Card holders drawing exchanges under BTQ against ICCs should on their return to India get their passports endorsed from the authorised dealers through whom the reimbursement will be provided.
[ANX-III] ANNEXURE III
Guidelines for acceptance of passage fare/freight in rupees/foreign currency in India by Airline/ Shipping companies or their agents
[Part B of Chapter 8] A. Passage Fare
(1) Passage fare in rupees can be accepted freely from residents for their travel from/to India.
(2) Passage fare in rupees can be accepted from non-residents from their bank accounts in India for their travel to India. Passage fare in rupees can also be accepted from non-residents, who are on a visit to India, for their travel from India.
(3) Passage fare in rupees can be accepted from residents on behalf of non-residents, for the latters travel to/from India.
(4) Passage fares in rupees can be accepted for crew members of foreign shipping companies for their travel on the carriage of foreign airline companies provided payment is made out of the net remittable freight collections of the concerned shipping company. (A certificate to this effect should be obtained from the agent in India of the foreign shipping company.)
(5) The tickets issued in India should normally be those of a carrier operating in or through India. This, however, does not restrain the carriers operating in or through India from issuing tickets with coupons covering journeys between two points abroad on a carrier not so operating (e.g. Air India ticket may be issued containing coupons one or more of which are for confirmed/open dated booking for journey/s between European and African ports by an airline which does not have any flights touching Indian ports). Offline carriers i.e. those which do not operate their services in or through India, incorporated in the countries with which India has a bilateral air service agreement, or their General Sales Agents (GSA) may sell tickets and/or issue airway bills against payment in Indian rupees, only in conjugation with the tickets/airway bills issued for travel to/from India and import/export into/from India, as also in respect of their ad-hoc flight/s to/from India.
(6) Refunds on tickets/Prepaid ticket advices etc. for which payments were received in rupees in India from residents, should be made only in rupees in India.
(7) In all other cases, the cost of ticket should be accepted only in a convertible foreign currency or in rupees if supported by an encashment certificate in the prescribed form issued by an authorised dealer.
(8) Particulars of the traveller such as name, address, nationality, passport number and date and place of its issue, route and the amount of fare collected should be obtained and kept on record by the airline company. Where the fare is paid by a resident on behalf of a non-resident, the name and address of the person paying the fare should be recorded.
B. Freight
(9) Freight on import of goods into the country may be accepted in rupees on submission of a declaration by the importer to the effect that it has to be borne by him in terms of the contract with the overseas seller. In respect of goods imported as consolidated air cargo on freight payable basis, freight may be accepted in rupees after obtaining a declaration as indicated above. Where the overseas consolidator has advanced the freight abroad to the airline company and claims reimbursement from the break-bulk agent in India, the procedure laid down in paragraph 8B.4 should be followed.
(10) Freight on import of goods made by foreign diplomatic missions/personnel in India may be accepted in rupees in India only if they have been derived from conversion of the balance maintained in a foreign currency account in India with the State Bank of India by a cheque drawn on such an account in favour of the airline/shipping company.
(11) Freight in respect of goods consigned from foreign ports (or of foreign ownership) shipped or transhipped through Indian ports can be accepted in rupees in India only if they have been derived by sale of convertible foreign currency to an authorised dealer and supported by an encashment certificate in the prescribed form issued by the authorised dealer.
(12) Freight in respect of import of goods into Nepal/Bhutan from countries outside India, where it is payable at the destination, i.e. at an India port, may be accepted in rupees in India only where the shipment is made by an Indian or Nepalese/Bhutanese carrier. Where, however, other carriers are used, freight can be accepted in rupees only if they have been derived by sale of convertible foreign currency to an authorised dealer and supported by an encashment certificate in the prescribed form issued by the authorised dealer.
(13) Freight on excess or unaccompanied baggage of travellers proceeding abroad from India may be accepted in rupees in India provided they are booked for the same destination for which ticket has been issued and paid for in rupees in India.
(14) Freight on excess or unaccompanied baggage of travellers arriving in India may be accepted in rupees in India provided the ticket for travel to India has been booked against payment in rupees in India.
(15) Freight on export of goods from India may be accepted in rupees in India on submission of a declaration by the exporter that the freight is either payable by him in terms of the contract with the overseas buyer or the freight is being paid by him on behalf of the overseas supplier and would be recovered and repatriated to India, along with the amount of invoice, in an approved manner.
(16) Freight on air/sea cargo moving in consolidation may be accepted in rupees in India from air/sea cargo agents only in cases where exports have been made on freight prepaid basis and after obtaining a certificate from them that exporters (list of names and addresses of exporters to be attached) have in turn given a declaration to them that the exports are on `freight prepaid basis.
(16A) Freight on air/sea cargo moving in consolidation may be accepted in rupees from air/sea cargo consolidators in India in respect of exports on f.o.b. basis after obtaining a certificate from them that the relative amounts will be recovered from the overseas buyer by their overseas break-bulk agents.
(16B) Freight on CIF/C&F exports by sea cargo consolidation may be accepted in Indian rupees from the registered Multimodal Transport Operators and sea cargo consolidators on submission of a declaration that the freight paid is in respect of export cargo consolidations under MTD Nos..... to......... /House Bills of Lading No.......to...........
(16C) Collection of Bunker Adjustment Factor (BAF) and Currency Adjustment Factor (CAF) should be strictly as per the resolution/s and/or instructions from the conference of which the foreign shipping company is a member.
(16D) A separate cheque/bank draft may be collected by the agents for Terminal Handling Charges (THC), ancilliary charges and Container Detention Charges (CDC) and kept in an identifiable manner. In case a consolidated cheque for freight and other charges i.e. THC etc. is issued, it should be in the name of local agent only who will in turn transfer the portion relating to freight and surcharge to the freight collection account giving reference number shown in the respective freight manifest.
(17) Freight in rupees in India may be accepted from exporters in India in respect of goods earlier exported by them which are now being reimported into India.
(18) Rebate in respect of shipments for which payment of freight was received in rupees should be paid only in rupees in India.
(19) Freight in respect of Nepalese/Bhutanese exports made through Indian ports, where it is payable at an Indian port, may be accepted in rupees in India only where the shipment is made by an Indian or Nepalese/Bhutanese carrier. Where, however, other carriers are used, freight can be accepted in rupees only if they have been derived by sale of convertible foreign currency to an authorised dealer and supported by an encashment certificate in the prescribed form issued by the authorised dealer.
(20) In all other cases, freight should be accepted only in foreign currency or in rupees if supported by an encashment certificate in the prescribed form issued by an authorised dealer. Freight can also be accepted in foreign currency wherever offered by Indian exporters/importers (see paragraph 8C.4).
(21) Shipping companies and their agents should not issue Telegraphic Delivery Orders (TDOs) direct in favour of consignees named by the exporters as all shipping documents covering export of goods from India must be passed through the medium of an authorised dealer. TDOs may, however, be issued in the name of an overseas correspondent bank of the authorised dealer in India through whom the relative drafts or bills will be forwarded.
(21A) Feeder freight/slot hire charges in respect of cargo/containers carried from/to Indian ports to/from international transhipment ports (hub ports) may be paid to the Feeder Line Operators or their agents in India in rupees alongwith a certificate indicating therein the name and voyage number of the feeder vessel and amount of feeder freight charges paid by the concerned company and giving a reference to the monthly statement in form SPM 2/SPG 1 submitted/to be submitted to Reserve Bank in which the amounts of freight paid have been/will be reported.
(21B) Feeder freight/slot hire charges may be collected by agents of Feeder Line Operators from the agents of Main Line Operator, Multimodal Transport Operators and Non Vessel Operating Common Carriers (NVOCC) and Indian shipping companies if accompanied by a statement showing the number of containers and serial number thereof and reference number of the SPM2/SPG1/MTR in which the figures have been reported.
C. Statements
(22) Foreign airline companies operating in or through India or their agents in India should forward to Reserve Bank through their bankers a monthly statement (in duplicate) of their passage and freight collections and disbursements made therefrom in form SPM 1 during the month, duly signed by the Chief Executive of the airline company in India. The statement should be submitted irrespective of whether remittance of surplus funds out of India is intended to be applied for or not. (One copy of the statement will be forwarded to Reserve Bank by the concerned bank in the manner laid down in paragrarph 8B.1 of the Manual).
(23) Foreign shipping companies operating in or through India or their agents in India should forward directly to Reserve Bank a voyage-wise statement in form SPM 2 giving details of passage and freight collections and disbursements made for the vessel belonging to the foreign shipping principal. The statement should be submitted irrespective of whether remittance of surplus funds out of India is intended to be applied for or not.
(23A) Foreign shipping companies operating feeder services in or through India or their agents should forward directly to the Reserve Bank, voyagewise statement in form SPM 4 giving details of passage and freight collections and disbursements made for the vessel belonging to the foreign shipping principal. The statement should be submitted irrespective of whether remittance of surplus funds out of India is intended to be applied for or not.
(24) Indian airline/shipping companies should submit to Reserve Bank a monthly statement in form SPM 3 giving details of passages booked for journeys which are partly or wholly outside India and freight collections in India on goods exported from or imported into India or transhipped at Indian ports.
D. Maintenance of Records
(25) Section 33 (2) of FERA 1973 empowers the Reserve Bank to require any person to furnish any information, book or other document in his possession. Airline/shipping companies and their agents should, therefore, maintain proper records and books in respect of their business and in support of the particulars furnished in the statements submitted by them to Reserve Bank and preserve them at least for a period of six months for being forwarded to Reserve Bank for inspection when called upon to do so.
(26) Passage/freight collections should be credited to Non-resident account of the foreign shipping company or in the name and account of the agent styled - Name of the Agent - A/c. Name of the foreign shipping company. Miscellaneous charges covering local expenses of the agent should be kept separately and not credited to the above account.
[ANX-IV] Annexure IV
Guidelines for granting remittance facilities to travel agents/tour operators/ hotels/organisations in India out of collections made by them from the Indian travellers undertaking visits abroad and paying in foreign currency or in rupees for (i) issue of passes/tickets for surface transportation abroad or (ii) booking hotel accommodation abroad or (iii) issue of pre-paid telephone cards
[Paragraphs 8B.5 and 8C.7] 1. General
(i) The details of the tie-up arrangement(s) for any of the above mentioned facility should be furnished by the applicant to an authorised dealer through whom remittance facility is sought for, duly accompanied by a certified copy of the agency agreement entered into with the overseas agent/tour operator/ hotel/organisation indicating rate/amount of commission of the Indian agent, type of passes/tickets to be sold, cost of each pass/ticket, cost of hotel accommodation or telephone card (Details for each facility, country-wise where services are provided, etc. are to be furnished separately).
(ii) Special Rupee accounts or designated foreign currency accounts after obtaining specific permission from the Reserve Bank may be opened for the deposit of collections at different places/centres in India. However, such deposits should be pooled into one main designated account with an authorised dealer from which the remittances to the foreign agent/hotel/principal may be allowed to be made. The details of credits for amount of foreign exchange collected from each of the travellers should be furnished by the agent in India with a copy of Reserve Banks permission for opening foreign currency account, to the designated branch of an authorised dealer at the time of application for making remittance for the above purpose.
2. Terms and Conditions
Authorised dealers may allow the remittance of net collections of amount paid by the Indian travellers after ensuring that the following terms and conditions have been fulfilled and satisfying that the remittance applied for is arrived at correctly duly supported by the appropriate documentary evidence. An undertaking to the effect of the following (wherever applicable) may also be taken from the Indian travel agent/tour operator/hotel/organisation -
a) Deleted.
b) The sale of passes/tickets for rail/road/water transportation abroad or facility of hotel accommodation abroad or sale of pre-paid telephone cards has been made on behalf of the overseas organisations i.e. _________________________________ (name and address to be specified ) (Details to be furnished separately for each of the above facilities).
c) Passes/tickets for rail/road/water transportation have been sold to persons resident in India (including foreign nationals permanently resident in India) holding valid air tickets for travel from/to India to a foreign country (other than Nepal and Bhutan). The air ticket number and date of its purchase and travel as also the passport number of the traveller have been endorsed on the passes/tickets issued for rail/road/water transportation abroad or on the reservation slip issued in connection with the booking of hotel accommodation abroad or voucher/slip etc. issued while selling pre-paid telephone cards.
d) Amount/cost collected in rupees towards sale of the passes/tickets for surface transportation abroad or pre-paid telephone cards is deposited in a special rupee account to be opened for the purpose with the designated branch of an authorised dealer. No other credits should be made into this account. Debits to the account are allowed only for refunds to be paid to travellers and remittance in foreign currency to the concerned foreign agent/principal, through the designated branch of an authorised dealer.
e) The cost of hotel accommodation abroad has been paid out of foreign exchange released to the Indian traveller for undertaking visits abroad.
f) Passes/tickets for surface transportation abroad or hotel accommodation or pre-paid telephone cards have been sold to non-residents (including foreign citizens not permanently resident in India) against payment received in the permitted foreign currency through normal banking channel or by debit to the NRE/FCNR account of the applicant or against payment in rupees representing proceeds of foreign currency surrendered by them during the visit of such non-residents to India, duly supported by valid encashment certificate/s in the prescribed form BCI, ECF or ECR and the conversion facility for any other purpose has not been availed of against those certificates.
g) Proper records of sale of passes/tickets or rail/road/water transportation or booking of hotel accommodation or pre-paid telephone cards or cancellations, if any have been maintained and would be made available for inspection/verification by Reserve Bank as and when called for.
h) Advance payment to the overseas agent/principal for providing the surface transportation facilities to the Indian travellers does not exceed 10% of the cost of passes/tickets collected in rupees/foreign currency and hotel accommodation actually collected in foreign currency from each of the travellers out of foreign exchange released for visits abroad and the advance amount as stated above would be adjusted within one month from the date of remittance. In case of failure to adjust the amount the same would be repatriated to India promptly and bank certificate in support thereof would be produced to the Reserve Bank.
i) No advance payment towards pre-paid telephone cards has been made to the overseas principal.
3. Application
Application for remittance of the net collections to the overseas agent(s)/tour operator/hotel/principal(s) should be made (in duplicate) to the designated branch of an authorised dealer together with the following particulars/documents.
i) Form A2
ii) Certified copy of the agency agreement
iii) Original invoice/rate card received from the foreign agent/tour operator/hotel/organisation.
iv) Statement showing the total cost of passes/tickets or hotel accommodation or pre-paid telephone cards collected in Indian rupees and in foreign currency. Total numbers of Indian travellers and total amount for each facility should be shown separately and paid in rupees and in foreign currency, traveller-wise.
v) Amount of commission/mark up and other charges of the Indian agent deducted.
vi) Amount of refunds if any, allowed in rupees.
vii) Net amount remitted.
viii) Details of advance payment, if any, availed of and adjustment made before allowing remittance.
ix) Amount collected in foreign exchange for passes/tickets and hotel accommodation, deposited in foreign currency account (duly permitted by Reserve Bank).
x) Documentary evidence for collection in rupees from non-residents vide paragraph 2(f) above.
4. Compliance by Authorised Dealers.
(I) Authorised dealers should ensure that the remittances towards cost of hotel accommodation abroad is allowed only out of the foreign exchange released to the traveller for visits abroad. Amount paid for the hotel reservation should be endorsed in the passport of the traveller.
(II) Authorised dealers should further ensure that -
(a) Deleted.
(b) the applicant agent has not come to the adverse notice of Enforcement Directorate or any other law enforcing agency.
(c) Remittance of amount to the overseas agent/touroperator/principal represents net collection after deducting the commission due to the Indian agent and advance payment if any, allowed to the overseas agent/principal.
(d) the payments towards refunds to the travellers who had paid in foreign currency have been made in rupees only in India.
(e) the remittance facility for above purposes is on actual basis and no advance payment should be permitted for stocking of passes/ tickets/ reservation slips, etc.
(f) No advance payment is allowed for pre-paid telephone cards.
[ANX-V] Annexure V
Guidelines to authorised dealers for scrutiny of applications in form SPM 2 for remittance of surplus passage/freight collections by foreign shipping companies or their agents in India
[Paragraph 8 B.2 of ECM ] 1. Authorised dealers should ensure that the figures reported therein are prima facie in order and the remittances have been made out of the net surplus collections.
2. All collections of freight reported against item 4 of the statement are duly supported by freight manifest.
3. The passage fare/freight collections reported in the statement have been made in accordance with the Guidelines of Reserve Bank of India (Annexure III to Chapter 8) and that bank certificates have been enclosed where passage fare/freight is required to be received in foreign currency ( see paragraphs A.22 and A.23 of the Guidelines vide Annexure III)
4. At least 10 to 15 % entries in the freight manifests in respect of freight collections on export cargo should be verified with reference to the Sr.No.of containers shown in the freight manifest and tallied with those shown in export tally sheet certified by the surveyors of the shipping company to ensure actual loading on board the ship of the relevant export cargo. In case of inconsistency, if any, relative export general manifest certified/acknowledged by Custom authorities may be called for and verified.
5. In respect of freight collections on imports on charges collect basis the relative Bills of Lading should be verified in full.
6. Other receipts reported against item 5 of the statement are supported by suitable documentary evidence. It should be ensured that other receipts do not include any charges such as Terminal Handling Charges (THC), Container Detention Charges (CDC), etc. which are due to the agent and not to the foreign shipping principals and hence not remittable.
7. Incomes reported on account of investments of funds (including fixed deposits) are covered by the requisite approval of Reserve Bank since investment of surplus funds is not ordinarily permitted and the carriers are expected to repatriate the surplus as and when due.
8. Request, if any, for transfer of funds to another agent of the same principal, should be considered by the transferors bankers only after (i) arriving at and out of the net remittable surplus i.e. the difference between collections (Column 3 + 4) and disbursements (Column 7) without taking into account the other receipts (Column 5) and (ii) obtaining prior authorisation of the principal.
9. Transfer of funds from one shipping agent to another of the same principals if reported against item 9(b) of the statement are covered by the requisite authorisation of the principal.
10. Any collections which are not supported by the requisite documents would not be eligible for repatriation. In such cases authorised dealers may deduct such amount from the amount sought to be remitted. They may be allowed after obtaining suitable documentary evidence/clarification from the applicant. Details of all such discrepant amounts should be advised to Reserve Bank while forwarding statement in form SPM 2. Reserve Bank will further advise in the matter.
11. The Disbursement Account (DA) statement should be verified with reference to the eligible items for rupee expenses i.e. local consumption only. The supporting vouchers/bills etc. are not required to be enclosed with the statement. The AD can, however, call for the same for perusal and return at random to verify the corrections of the amount reported in DA statement.
12. In case the amount disbursed by the agent is more than the collections reported in the statement, the agent should be advised to arrange for remittance of funds from his principals abroad.
13. Payments made to agents of feeder line operators should be against service bill of lading (and an invoice from the agent if no amount is shown in service bill of lading) supported by a statement giving details of number of containers and serial number thereof.
14. Deleted.
15. Foreign shipping companies/their agents in India are required to submit to Reserve Bank through their bankers voyage-wise statements (in duplicate) in form SPM 2 within 35 days from the date of sailing of the vessel, vide paragraph 23 of the Guidelines (Annexure III) irrespective of whether remittance of surplus funds out of India is intended to be applied for or not. Authorised dealers should watch the regular receipt of the statements from the shipping companies/their agents concerned who are maintaining bank accounts with them for crediting freight/passage collections. They should also maintain a register for recording the particulars of SPM 2 statements received and remittances of surplus passage/freight collections allowed to be made by them in form SRM. In case of default in submission of SPM 2 statement or continuous discrepancies, the matter may be brought to the notice of concerned office of Reserve Bank.
16. A monthly statement in form SRM i.e. the form in which a register is maintained by authorised dealers should be forwarded to Reserve Bank by 10th day of the succeeding month after completing the certificate mentioned therein alongwith voyage-wise statements in form SPM 2 (without enclosures). The documents received from the applicants should be preserved for a period of one year from the date of remittance or till the date of acceptance of the transaction as in order by the internal auditors of the authorised dealer concerned, whichever is latter.
17. Where there is a deficit in the voyage account i.e. disbursements exceed collections, the concerned Authorised dealer should ensure that the deficit is invariably met out of the unremitted net surplus collections pertaining to the previous voyage or by way of inward remittances from overseas principals.
18. Applications for remittance/utilisation of port congestion surcharge and port additional charges collected from shippers should be referred to concerned office of Reserve Bank with full details.