TaxTMI 
TaxTMI 
Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 ((Amended upto June 01, 2016)
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....ts by a person resident in India) Regulations, 2015. ii) They shall come into force from the date of their publication in the official gazette. 2. Definitions:- In these Regulations, unless the context otherwise requires, - i) 'Act' means the Foreign Exchange Management Act, 1999 (42 of 1999); ii) 'Authorised dealer' means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Act; iii) 'Foreign Currency Account' means an account held or maintained in currency other than the currency of India or Nepal or Bhutan; iv) 'Schedule' means schedule to these Regulations; v) the words and expressions used but not defined in these Regulations shall have the same meanings respectively assigned to them in the Act. 3. Restriction on holding foreign currency account by a person resident in India:- Save as otherwise provided in the Act or rules or regulations made there under, no person resident in India shall open or hold or maintain a foreign currency account: Provided that a Foreign Currency Account held or maintained before the commencement of these Regulations by a person resident in India ....
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....hall not be eligible to operate the account during the life time of the resident account holder. Explanation- For the purpose of this sub-regulation, the expression 'relative' shall have the same meaning as assigned to it under section 2(77) of the Companies Act, 2013. (C) Resident Foreign Currency (Domestic) Account (1) A resident Individual may open, hold and maintain with an Authorised Dealer in India a foreign currency account, to be known as Resident Foreign Currency (Domestic) Account, out of foreign exchange acquired in the form of currency notes, bank notes and travellers' cheques as under: a. by way of payment for services not arising from any business in or anything done in India while on a visit to any place outside India; or b. from any person not resident in India and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligation; or c. by way of honorarium or gift while on a visit to any place outside India; or d. in the form of unspent amount of foreign exchange acquired by him from an authorised person for travel abroad; ....
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.... any manner to any person or entity resident in India not being a unit in Special Economic Zones. (E) Diamond Dollar Accounts (DDAs) An Authorized Dealer Category-I bank in India may allow firms and companies who comply with the eligibility criteria stipulated in the Foreign Trade Policy of Government of India, in force from time to time and the directions as may be issued by Reserve Bank of India, from time to time, to open, hold and maintain Diamond Dollar Accounts (DDAs) in India subject to the terms and conditions of the DDA Scheme specified in Schedule II. (F) Exporters A person resident in India, being an exporter who has undertaken a construction contract or a turnkey project outside India or who is exporting services or engineering goods from India on deferred payment terms may open, hold and maintain a Foreign Currency Account with a bank in India, provided that - a. approval as required under the Foreign Exchange Management (Export of goods and services) Regulations, 2015 has been obtained for undertaking the contract/ project/ export of goods or services, and b. the terms and conditions stipulated in the l....
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....n, hold and maintain with his branch or head office or correspondent outside India, a Foreign Currency Account for the purpose of transacting foreign exchange business and other matters incidental thereto, in accordance with the provisions of the Act or the rules or regulations made or the directions issued thereunder. (2) A branch outside India of a bank incorporated or constituted in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of carrying on normal banking business outside India, subject to compliance with the directions or guidelines issued from time to time by the Reserve Bank, and the regulatory authority in the country where the branch is located. (B) Account by a company/ firm in the name of its office/ branch/ representative outside India A firm or a company or a body corporate registered or incorporated in India (hereinafter referred to as 'the Indian entity') may open, hold and maintain in the name of its office (trading or non-trading) or its branch set up outside India or its representative posted outside India, a foreign currency account with a bank outside India by making remittances from India for t....
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.... of immovable property outside India, other than by way of lease not exceeding five years, by the overseas branch/ office/ representative will be subject to the Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015. (C) Exporters A person resident in India, being an exporter who has undertaken a construction contract or a turnkey project outside India or who is exporting services or engineering goods from India on deferred payment terms may open, hold and maintain a Foreign Currency Account with a bank outside India, provided that - a. approval as required under the Foreign Exchange Management (Export of goods and services) Regulations, 2015 has been obtained for undertaking the contract/ project/ export of goods or services, and b. the terms and conditions stipulated in the letter of approval have been duly complied with. (D) For making Overseas Direct Investment An Indian party may open, hold and maintain Foreign Currency Account abroad for the purpose of making overseas direct investments subject to the following terms and conditions: a. The Indian party i....
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.... complies with the conditions laid down in Notification No. G.S.R 180(E) dated February 17, 2016 issued by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India." ^2(F) Other Cases (1) Subject to compliance with the conditions in regard to raising of External Commercial Borrowings (ECB) or raising of resources through American Depository Receipts (ADRs) or Global Depository Receipts (GDRs), the funds so raised may, pending their utilisation or repatriation to India, be held in deposits in foreign currency accounts with a bank outside India. (2) A shipping or airline company incorporated in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of undertaking transactions in the ordinary course of its business. (3) 3Insurance/ reinsurance companies registered with Insurance Regulatory and Development Authority of India (IRDA) to carry out insurance/ reinsurance business may open, hold and maintain a Foreign Currency Account with a bank outside India for the purpose of meeting the expenditure incidental to the insurance/ reinsurance business carried on by them and for that pur....
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.... may open, hold and maintain a foreign currency account with a bank outside India and remit the whole salary received in India in Indian Rupees, to such account, for the services rendered to such an Indian company, subject to payment of taxes, as applicable in India. Explanation:- For the purpose of this sub regulation, the expression 'company' shall include a 'Limited Liability Partnership' as defined under The Limited Liability Partnership Act, 2008. 6. Types of accounts:- Unless otherwise specified in these Regulations, a Foreign Currency Account with an authorised dealer in India under these Regulations may be opened, held and maintained: a. in the form of current or savings or term deposit account in cases where the account holder is an individual, and in the form of current account or term deposit account in all other cases: Provided that the EEFC account referred to in Regulation 4 (A), shall be opened, held or maintained in a manner as prescribed by the Reserve Bank from time to time. b. singly or jointly in the name of person eligible to open, hold and maintain such account. 7. Remittances out of the account after th....
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....ter trade, in accordance with the approval granted in terms of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015, as amended from time to time; iv) advance remittance received by an exporter towards export of goods or services; v) payment received for export of goods and services from India, out of funds representing repayment of State Credit in U.S. dollar held in the account of Bank for Foreign Economic Affairs, Moscow, with an authorised dealer in India; (vi) Professional earnings including director's fees, consultancy fees, lecture fees, honorarium and similar other earnings received by a professional by rendering services in his individual capacity. ^4(vii) Payments received in foreign exchange by an Indian startup, or any other entity as may be notified by the Reserve Bank in consultation with the Central Government, arising out of exports/ sales made by the said entity or its overseas subsidiaries, if any. Explanation: For the purpose of this schedule a 'startup' means an entity which complies with the conditions laid down in Notification No. G.S.R 180(E) dated February 17, 2016 issued by Department of Industrial Policy and Promo....
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....r may issue cheque books of separate series with the superscription "EEFC Account" to the account holders maintaining such accounts, and also satisfy himself while honouring the cheques that the payment made by the account holder by issue of a cheque is permissible under these Regulations. iii) Resident individuals are permitted to include resident relative(s) as a joint holder(s) in their EEFC account on 'former or survivor' basis. However, such resident Indian relative(s) shall not be eligible to operate the account during the life time of the resident account holder. Explanation- For the purpose of this sub-regulation, 'relative' means relative as defined in section 2(77) of the Companies Act, 2013. Schedule II (See Sub - regulation (E) of Regulation 4) Diamond Dollar Account (DDA) Scheme 1. Firms and companies may open and maintain DDA with AD Category-I banks, subject to the following terms and conditions:- a. The exporter should comply with the eligibility criteria stipulated in the Foreign Trade Policy of the Government of India, issued from time to time. b. The DDA shall be opened in the name of the expor....
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....r studded with/ without diamond and/or other stones, with a track record of at least 2 years in import / export of diamonds / coloured gemstones / diamond and coloured gemstones studded jewellery /plain gold jewellery, and having an average annual turnover of Rs. 3 crore or above during preceding three licensing years. 2. We wish to open a current account/s under the Diamond Dollar Account Scheme with your bank in accordance with the provisions of (mention the relevant paragraph) of the Foreign Trade Policy (period e.g. 2009-2014) of the Government of India read with the Handbook of Procedures (mention the relevant Volume No.) issued by Ministry of Commerce & Industry, Government of India. 3. The relevant particulars are furnished below: i) Name of the Firm / Company: ii) Address of the Registered Office: iii) Principal business: iv) IE Code No.: v) Annual Turnover of the last two Years (enclose certificate of CA): vi) Details of the EEFC account, if any : 4. We confirm that we are not maintaining any foreign currency account, excluding EEFC account, with banks in India or abroad. 5. We declare that we are not maintaining more than 5 DDAs including the....