https://www.taxtmi.com/caselaws?id=358570 Treating non-resident account deposits as the effective security for loans to a resident borrower, without creating independent primary security and without RBI permission, was found to breach the foreign exchange framework and RBI directions because it indirectly conferred foreign exchange consideration on the non-resident depositors. The bank's argument that the deposits were only collateral was rejected on the facts. The penalty was examined on its circumstances and then reduced to Rs. 15 lakhs, but the finding of contravention was sustained and the appeal failed on merits. en-us Thu, 12 Apr 2018 00:00:00 +0530 Sat, 14 Apr 2018 07:15:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358570 Treating non-resident account deposits as the effective security for loans to a resident borrower, without creating independent primary security and without RBI permission, was found to breach the foreign exchange framework and RBI directions because it indirectly conferred foreign exchange consideration on the non-resident depositors. The bank's argument that the deposits were only collateral was rejected on the facts. The penalty was examined on its circumstances and then reduced to Rs. 15 lakhs, but the finding of contravention was sustained and the appeal failed on merits. Case-Laws FEMA Thu, 12 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358570