SECTION 9. Notification No. F.E.R.A.6/74-RB dated 1st January 1974

Transcription

1 SECTION 9 Notification No. F.E.R.A.6/74-RB dated 1st January 1974 Making Payments in Rupees on Behalf of Non-residents G.S.R.88 In pursuance of clause (d) of sub-section (1) of Section 9 of the Foreign Exchange. Regulation Act, 1973 (46 of 1973), the Reserve Bank is pleased to permit the making of any payment in rupees by order or on behalf of a person resident outside India out of rupee funds provided by sale of foreign exchange, by such person, to an authorised dealer in India

2 Notification No. F.E.R.A.7/74-RB dated 1st January 1974 Transactions in Indian rupees with residents of Nepal and Bhutan G.S.R (46 of 1973), the Reserve Bank hereby directs that none of the prohibitions imposed by the various clauses of that sub-section shall apply to any transaction entered into in Indian rupees by or with - (i) (ii) (iii) Indians, Nepalese or Bhutanese resident in Nepal or Bhutan, a branch situated in Nepal or Bhutan of any business carried on by a company or a corporation incorporated or established under any law in force in India, Nepal or Bhutan, a branch situated in Nepal or Bhutan of any business carried on as a partnership firm or otherwise by Indians, Nepalese or Bhutanese. Receipt of Payment by Order or on behalf of Non-residents Notification No. F.E.R.A.48/77-RB dated 24th November 1977 as amended up to 26th April 1993 In pursuance of clause (b) of sub-section (1) of Section 9 of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and in supersession of the Notification No. F.E.R.A.257/72- RB dated 7th October 1972, the Reserve Bank is pleased to permit any person to receive any payment by order or on behalf of a person resident outside India - (a) (aa) made in rupees during such person's stay in India, out of the rupee funds provided by sale by such person, of foreign exchange to an authorised dealer in India; made in rupees representing income from immovable property held in India by a non-resident provided that the rupees are credited within two months from the date of receipt of such income to the account of the non-resident with an authorised dealer in foreign exchange in India and provided that such properties are held in accordance with Section 31 of the said Act, where applicable;

3 (b) (c) (d) by means of postal order issued by a post office outside India or by a postal money order issued by such post office; by means of cheques drawn on banks situated outside India or bank drafts or travellers cheques issued outside India; in foreign currency notes received by him directly from out of India; subject to the condition that any foreign exchange received shall, within seven days of receipt of the same be offered for sale or cause to be offered for sale in accordance with the Central Government's Notification No. G.S.R.679E (F.10/22/90-NRI Cell) dated 17th July Notification No. F.E.R.A.82/89-RB dated 9th August 1989 Sending or bringing into India Foreign Exchange Otherwise than through an Authorised Dealer In pursuance of sub-section (3) of Section 9 of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and in supersession of the Notification of Reserve Bank of India No. F.E.R.A.8/74-RB dated 1st January, 1974 the Reserve Bank hereby directs that the provisions of the said sub-section shall not be deemed to apply to the sending or, as the case may be, bringing into India, in accordance with the Notification of Reserve Bank of India No. F.E.R.A.81/89-RB dated 9th August 1989, of - i) foreign exchange (other than currency notes, bank notes and travellers cheques), or ii) currency notes or bank notes expressed in Indian rupees referred to in the said notification. Issue of Commercial Paper Notification No. F.E.R.A.85/89-RB dated 9th October 1989 as amended up to 26th April (46 of 1973), the Reserve Bank hereby directs that the prohibition imposed by clause (c) of that sub-section, shall not apply to the issue of commercial paper to non-residents of Indian nationality or origin (NRIs) by a company which issues commercial paper in accordance with the terms and conditions stipulated by the Reserve Bank in that regard:

4 Provided that - (i) the amount invested in such commercial paper and the income earned thereon shall not be allowed to be repatriated out of India; and (ii) that commercial paper issued to NRIs shall not be transferable. Explanation: A person (not being a citizen of Pakistan or Bangladesh) shall be deemed to be of 'Indian origin', if - (i) he, at any time, held Indian passport; or (ii) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (iii) that person is the spouse of an Indian citizen or of a person of Indian origin (not being a citizen of Pakistan or Bangladesh). Notification No. F.E.R.A.91/91-RB dated 13th September 1991 Expenditure on Hospitality to Non-resident Visitors In pursuance of the powers conferred by clauses (b) and (d) of sub-section (1) of Section 9 of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and in supersession of Notifications Nos. FERA.78/89-RB dated 12th May 1989, FERA.83/89-RB dated 14th September 1989 and FERA.86/90-RB dated 5th May 1990, the Reserve Bank is pleased -

5 (a) (b) to permit any person resident in India (hereinafter referred to as 'the host') to make payment to another resident, in Indian rupees towards meeting expenses on account of boarding, lodging and services related thereto and/or travel within India, of a person resident outside India and who is on a visit to India in connection with business, activity or any other work of the host; to permit any person resident in India to receive from another person resident in India any payment, such payment being made and received towards meeting expenses on account of boarding, lodging and services related thereto and/or travel within India, of a person resident outside, but on a visit to India. Notification No. F.E.R.A.92/91-RB dated 13th September 1991 as amended up to 26th April 1993 Payment of Technical Know-how Fee/Royalty 1973 (46 of 1973), the Reserve Bank of India hereby directs that the prohibition imposed by clause (a) of that sub-section shall not apply to the making of any payment by a person in or resident in India towards technical know-how fee and/or royalty under a foreign technical collaboration arrangement, approved by the Government of India or the Reserve Bank as the case may be, subject to the conditions that - (i) (ii) (iii) the payment is made strictly in accordance with the terms and conditions specified for the purpose in the letter of approval for the technical collaboration, issued by the Government of India or the Reserve Bank as the case may be; the payment is effected through an authorised dealer designated for the purpose by the Reserve Bank in respect of the relative technical collaboration; a statement in duplicate in the form specified for the purpose, shall be submitted to the Exchange Control Department of the concerned regional office of the Reserve Bank in the first fortnight of January each year, by the Indian party to the technical collaboration, in respect of all payments made under the collaboration arrangement during the year.

6 Notification No. F.E.R.A.117/92-RB dated 7th September 1992 as amended up to 28th April 1995 Payments out of Foreign Currency Accounts held in India/Abroad by Residents 1973 (46 of 1973) and in supersession of its Notification No. F.E.R.A.5/74-RB dated 1st January 1974, the Reserve Bank is pleased to direct that the prohibition imposed by Clause (a) of that sub-section shall not apply to - (1) the making of any payment to or for the credit of any person resident outside India, out of foreign exchange held in India in accordance with any schemes approved by the Reserve Bank in this behalf, or outside India, if such foreign exchange was acquired by a person - (a) otherwise than in contravention of the said Act, while he was resident outside India; or (b) through employment, business or vocation outside India, taken up or commenced while such person was resident outside India. Provided that in either case, such a person has been resident outside India for a continuous period of not less than one year. (2) the making of any payment to or for the credit of any person resident outside India, out of an account in any foreign currency, with a bank situated outside India, by a person resident in India, Provided that such account was opened, (a) (b) prior to 8th July 1947 and maintained with the permission of the Reserve Bank, or with the foreign currency acquired by a person resident in India, by way of gift or inheritance, from a person maintaining an account in any foreign currency under clause (1) or sub-clause (a) hereinabove, as the case may be,

7 PROVIDED further that in case of gift, the person receiving the gift of foreign currency is a relative of the person making such gift and any tax in respect of gift has been paid in India. Explanation : For the purpose of this clause "relative" in relation to an individual, means husband, wife, brother or sister or any lineal ascendant or descendant of that individual. Notification No. F.E.R.A.128/93-RB dated 29th March 1993 Payments to Non-resident Directors 1973 (46 of 1973), the Reserve Bank of India hereby directs that the prohibition contained in clause (a) of that sub-section shall not apply to the making of payment in Indian rupees, by a company in or resident in India to its non-wholetime director who is resident outside India and is on a visit to India for the company's work such as attending Board meeting, etc. and is entitled to payment of sitting fees or commission or remuneration by way of monthly or quarterly or annual payment in accordance with the provisions therefor contained in the company's Memorandum of Association or Articles of Association or in any agreement entered into by it or in any resolution passed by the company in general meeting or by its Board of Directors. Provided that, the Central Government's approval has been obtained by the company under Section 309(4) or Section 310 of the Companies Act, 1956, wherever it applies.

8 Notification No.F.E.R.A.167/95-RB dated 30th May 1995 Purchase of gold/silver imprted by NRIs, by resident Indians In pursuance of clause (a) of sub-section (1) of Section 9 of the Foreign Exchange Regulation Act 1973 (46 of 1973) the Reserve Bank is pleased to permit any person resident in India to make payment in Indian Rupees by means of a crossed cheque in India as consideration for purchase of gold/silver in any form including ornaments (but excluding ornaments studded with stones or pearls) to a person resident outside India who has imported and sold such gold/silver in accordance with the terms and conditions imposed under any order issued by the Central Government under the Foreign Trade (Development and Regulation) Act, 1992 or under any other law for the time being in force. Notification No.F.E.R.A.175/97-RB dated 27th February 1997 Interest-free Loans from Non-resident Relatives 1973 (46 of 1973), Reserve Bank is pleased to permit that an individual resident in India may receive interest-free loans on non-repatriation basis from any relative resident outside India subject to the condition thati) the loan should be availed of from a relative as defined in Section 6 of the Companies Act,1956; ii) the amount representing the loan should be received through normal banking channels or by debit to the lender's NRE/FCNR account with an authorised dealer; and iii) repayment of loan will be made by credit to Ordinary Non-Resident (NRO) Account of the lender.