Opening of Foreign Currency Account in India by Project / Service Exporter for Execution of Contract Abroad

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....ve Bank of India Exchange Control Department Central Office Mumbai 400 001 A.P.(DIR Series) Circular No.20 September 23, 2003 To All Authorised Dealers in Foreign Exchange Madam / Sirs, Opening of Foreign Currency Account in India by Project /Service Exporter for Execution of Contract Abroad Attention of Authorised Dealers is invited to Regulation 7(5) of Notification....

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....en, hold and maintain a separate Foreign Currency Account for each project under execution abroad. ii. Authorised Dealers shall not avail of rupee loans against the security of balances held in such accounts and no overdraft in the account shall be permitted. iii. The balance in the account will be subject to SLR / CRR requirement as prescribed by Reserve Bank (DBOD) from time to time. 3.....

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....ort procedure as per provisions / requirements of FEMA 1999. 4. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned. 5. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).   Yours faithfully, Grace Koshie Chief General M....

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....nsfer of funds to rupee account in case payment made by the client for supply of material/equipment from India has to be temporarily credited to the account. vi. Conversion of balance in the account into Indian rupees at the end of the contract. All other credits/debits would require prior approval of the approving authority/Reserve Bank of India. 3. The account shall be closed immediatel....