NTF. NO. FEMA 168/2007-RB, DT. 23/10/2007

FEM (Deposit) Regulations, 2000

In exercise of the powers conferred by clause (f) of sub-section (3) of section 6, 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 in the Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No. FEMA.5/2000-RB dated May 3, 2000), namely:-

1. Short title and commencement:-

(i) These regulations may be called the Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2007.

(ii) They shall be deemed to have come into effect on the 18th day of May, 2007.@

2. Amendment of the Regulations:-

In the Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No. FEMA 5/2000-RB dated May 3, 2000), in Schedule 2, paragraph 11 shall be re-numbered as sub. paragraph (1) thereof and after sub-paragraph (1) so re-numbered, the following sub-paragraph shall be inserted, namely :-

'(2) Authorised dealer may permit remittance of the maturity proceeds of FCNR (B) deposits to third parties outside India, provided the transaction is specifically authorised by the account holder and the authorised dealer is satisfied about the bonafides of the transaction.'

(Salim Gangadharan)
Chief General Manager

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Foot Note:

(i). @ It is clarified that no person will be adversely affected as a result of retrospective effect being given to such regulations.

(ii). The Principal Regulations were published in the Official Gazette vide G.S.R.No.388 (E) dated May 5, 2000 in Part II, Section 3, Sub-Section (i) and subsequently amended vide

G.S.R. No.262(E) dated April 9, 2002,
G.S.R.No. 577(E) dated August 19, 2002,
G.S.R.No. 855(E) dated December 31, 2002,
G.S.R.No. 494(E) dated August 4, 2004,
G.S.R.No. 221(E) dated April 7, 2005,
G.S.R.No. 663(E) dated November 14, 2005
G.S.R.No. 28(E) dated January 19, 2006,
G.S.R.No. 495 (E) dated July 23, 2007.

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