TaxTMI 
TaxTMI 
TaxTMI 
Acceptance of FCNR(B) Deposits by Regional Rural Banks (RRBs)
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....lation 5 and Schedule 2 to Foreign Exchange Management (Deposit) Regulations notified vide Notification No. FEMA 5/2000-RB dated May 3, 2000, as amended from time to time, only Authorised Dealer Category - I (AD Category - I) banks are permitted to accept deposit from Non-Resident Indians (NRIs) under Foreign Currency (Non-Resident) Account (Banks) [FCNR(B)] Scheme. Furthermore, Regional Rural Ban....
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....cession of the instructions contained in the abovementioned circular, Reserve Bank has issued revised criteria for RRBs, for opening and maintaining NRO/NRE accounts in Rupees and for accepting FCNR(B) deposits, vide Circular No. RPCD.CO.RRB.No.BC.106 /03.05.33(C)/2006-07 dated June 28, 2007. 4. Accordingly, RRBs may be guided by the following procedure for acceptance of FCNR (B) deposits : (i)....
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....ro accounts of the sponsoring banks. (v) While the FCNR (B) deposit receipt would be issued by the RRBs to the depositors concerned, the foreign currency funds received as deposits would be treated as placements/deposits by the RRBs with their sponsoring banks. The sponsoring banks will be required to manage the foreign currency funds including deployment of FCNR (B) deposit funds. (vi) RRBs w....
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.... CSR format, in the manner as indicated in A.P. (DIR Series) Circular No. 55 dated May 9, 2007. However, the purchases and sale of designated currencies under the Scheme should be reported in appropriate 'R' returns by the sponsoring banks, as RRBs are not permitted to open and maintain nostro accounts. 5. Necessary amendments to Foreign Exchange Management (Deposit) Regulations, 2000 (Notificat....