Foreign Exchange Management (Deposit) Regulations, 2000-Loans to Non Residents / third parties against security of Non Resident (External) Rupee Accounts [NR (E) RA] / Foreign Currency Non Resident (Bank) Accounts [FCNR (B)] Deposits

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....horised banks Madam / Sir, Attention of Authorised Dealer Category-I banks and Authorised banks (the banks) is invited to Para 6 of Schedule 1 and Para 9 of Schedule 2 to Foreign Exchange Management (Deposit) Regulations, 2000 notified vide Notification No. FEMA 5/2000-RB dated May 3, 2000, as amended from time to time regarding loans against security of funds held in deposit accounts. Further,....

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....with para 9(1) of Schedule-2 of the Foreign Exchange Management (Deposit) Regulations, 2000, that the banks may now grant loans against NR(E)RA and FCNR(B) deposits either to the depositors or the third parties as under:- Existing provision Proposed provision Rupee loans* in India Loans against NRE/FCNR(B) Fixed Deposits Rs. 100 lakhs ceiling applicable Rupee loans to be allowed to depositor....

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....ecifically be brought to the notice of the deposit holder at the time of sanction of the loan. The existing loans which are not in conformity with the above instructions shall continue for their existing term and shall not be rolled over/renewed. Other conditions as regards grant of loan against NRE/FCNR deposits shall remain unchanged. 3. The above instructions shall come into force with immedia....