NTF. NO. FEMA 82/2003-RB, DT. 10/01/2003

Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2003

G.S.R. 533(E) .– In exercise of the powers conferred by Clause (d) of Sub-section (3) of Section 6, Subsection (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No. FEMA 3/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, as amended from time to time namely:–

1. Short title and commencement

(i) These Regulations may be called the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Second Amendment) Regulations, 2003.

(ii) They shall come into force on their publication in the Official Gazette.

2. Amendment of the Regulations

In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, in Regulations 4, in Sub-regulation (1) after Clause (vi), the following clause shall be added, namely:–

"(vii) An authorised dealer may grant foreign currency loans in India against the security of funds held in FCNR (B) account to the account holder only, subject to the guidelines issued by the Reserve Bank in this regard".

Sd/-
K. J. Udeshi,
Executive Director

Foot-note: The principal Regulations were published in the Gazette vide G.S.R No. 386(E), dated May 3, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide No. G.S.R. 674(E), dated August 14, 2000, No. G.S.R. 476(E), dated April 29, 2002, No. G.S.R. 854(E), dated November 1, 2002 and No. G.S.R. 531(E), dated January 8, 2003.

(Above Footnote has been added vide Corrg. G.S.R. 264(E), Dt. 01/04/2004 )

(Pl. refer CIR. NO. 65/2003-04-RB, DT. 05/02/2004 - Foreign Exchange Management Act, 1999-Amendments to Foreign Exchange Management Regulations )

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