NTF. NO. FEMA 154/2007-RB, DT. 07/06/2007

FEM (Foreign Currency Account by a Person Resident in India) Regulations, 2000

G.S.R. 455 (E).—In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) the Reserve Bank of India makes the following amendments the Foreign Exchange Management Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 (Notification No. FEMA 10/2000-RB dated 3rd May, 2000), as amended from time to time, namely:

1. Short Title and Commencement:

(i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations, 2007.

(ii) They shall be deemed to have come into force from the date(s) specified hereunder.

2. Amendment of the Regulations :-

In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India), Regulations, 2000 (hereinafter called the ‘principal regulations')

(1) in the Schedule, for paragraph (1), the following paragraph shall be substituted, namely

"(1) A person resident in India may credit to the EEFC Account with an Authorised Dealer in India 100 per cent of the foreign exchange earn­ings as specified in sub-paragraph (1A)."

This shall be deemed to have come into force with effect from 30th November, 2006.

(2) in regulation 7, in sub-regulation 4A the pro­viso, in clause (b)

(a) in sub-clause (i) for the figure "2" the figure "10" shall be substituted,

(b) in sub-clause (ii) for the figure "1" the figure "5" shall be substituted.

This shall be deemed to have come into force with effect from 21st April, 2006.

(3) in regulation 7 in sub-regulation 4A, in the proviso, in clause (b), sub-clause (i) and sub-clause (ii)shall be substituted by the following, namely:-

"(i) 15 per cent of the average annual sales/ income or turnover of the Indian entity during the last two financial years or up to 25 per cent of the net worth whichever is higher, where the remittances are made to meet initial expenses of the branch or office or representative,

and

(ii) 10 per cent of such average annual sales/ income or turnover during the last financial years where the remittances are made to meet recurring expenses of the branch or office or representative;"

This shall be deemed to have come into force with effect from 4th December, 2006.

Sd/-

(SALIM GANGADHARAN)
Chief General Manager

Issued by:

Reserve Bank of India, Mumbai

[F No. 1/23/EM/2000-Vol.IV

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