Notification No.FEMA. 63/2002-RB, Dt. 21/06/2002

Foreign Exchange Management (Foreign Currency Accounts by a person Resident in India) ( Third Amendment) Regulations, 2002

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) and in supercession of the Notification No.FEMA.37/2001-RB dated February 27, 2001, Reserve Bank of India makes the following amendments to Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, namely :

Short title and commencement :-

1. (i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) ( Third Amendment) Regulations, 2002.

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

Amendment of the Regulations

2. In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 (hereinafter referred to as "the said Regulations"), after paragraph 6 of the Regulation, the following paragraph shall be inserted, namely :

"6A. Foreign Currency Account of a unit in a Special Economic Zone

A unit located in a Special Economic Zone may open hold and maintain a Foreign Currency Account with an authorized dealer in India provided that,

a. all foreign exchange funds received by the unit in the Special Economic Zone (SEZ) are credited to such account,

b. no foreign exchange purchased in India against rupees shall be credited to the account without prior permission from the Reserve Bank,

c. the funds held in the account shall be used for bonafide trade transactions of the unit in the SEZ with the person resident in India or otherwise,

d. the balances in the accounts shall be exempt from the restrictions imposed under Rule 5, except item 3 and 4 of the Schedule III, of the Government of India Notification No.GSR.381(E) dated May 3, 2000.

Provided further that the funds held in these accounts shall not be lent or made available in any manner to any person or entity resident in India not being a unit in Special Economic Zones."

3. The existing paragraph 5 in the Schedule of the Regulation shall be deleted.

(K.J.Udeshi)
Executive Director

Foot-note :

The Principal Regulations were published in the Official Gazette vide G.S.R.No.393(E) dated May 5, 2000 in part II, Section 3, Sub-Section (i) and subsequently amended vide G.S.R.No.675(E) dated August 25, 2000, G.S.R.No.89(E) dated February 12, 2001, G.S.R.No.103(E) dated February 19, 2001, G.S.R.NO.2000(E) dated March 21, 2001, G.S.R.No.5(E) dated January 2, 2002 and G.S.R.No.261(E) dated April 9, 2002.

(That as rectified and modified as aforesaid, the Principal Regulations shall remain in full force and effect.)

(Above Foot Note has been added vide CORRIGENDUM - G.S.R. No.553(E), DT. 31/08/2004)

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