(i)The following terms have been defined in Section 2 of FERA 1973:
"Appellate Board"
"authorised dealer"
"bearer certificate"
"certificate of title to a security" "coupon"
"currency"
"foreign currency"
"foreign exchange"
"foreign security"
"Indian currency"
"Indian customs waters"
"money-changer"
"overseas market"
"owner"
"person resident in India"
"person resident outside India"
"precious stone"
"prescribed"
"Reserve Bank"
"security"
"transfer"
(ii) The following further clarifications are given in respect of certain terms for a better understanding
"Person resident in India"
A. Indian citizens who proceed abroad for business visit, medical treatment, study and such other purposes which do not indicate their intention to stay outside India for an indefinite period will be considered as "person resident in India" during their temporary absence from India.
B. By virtue of clauses (c) and (d) of sub-section (1) of Section 73 of the Act, an office or branch situated in India, of any business whether carried on by a body corporate or otherwise i.e. companies, firms, banks or any other organisations, whether Indian or foreign, is treated for all purposes of the Act as person resident in India. C. Wherever there is doubt as to the residential status of a person, authorised dealers should make a reference to Reserve Bank with full facts of the case for consideration.
D. In terms of Reserve Bank Notification No. FERA.7/74-RB dated 1st January 1974, for the purpose of transactions in Indian rupees, Indians, Nepalese and Bhutanese resident in Nepal and Bhutan as well as offices and branches of Indian, Nepalese and Bhutanese firms, companies or other organisations in these two countries are treated as person resident in India.
Person resident outside India
A. The implication of the Reserve Bank Notification referred to in D above is that persons resident in Nepal and Bhutan other than those indicated therein for the purpose of transactions in Indian rupees and all persons resident in Nepal and Bhutan for the purpose of transactions in foreign exchange, are treated as person resident outside India.
B. The term non-resident used in this Manual is synonymous with the term person resident outside India.
Security
For purposes of Sections 9 and 19 of the Act, security includes coupons or warrants representing dividend or interest and life/endowment insurance policies.
Foreign company
Foreign company refers to a firm, company or any other organisation incorporated/registered outside India.
FERA company
FERA company refers to a firm, company or any other organisation incorporated/registered in India in which non-resident interest exceeds forty per cent.
[ANX-I]
ANNEXURE
List of banks and other institutions to whom licences have been issued to deal in foreign exchange
(paragraph 1.4) A. Banks and others holding full-fledged licences
ABN AMRO Bank N.V.
Abu Dhabi Commercial Bank Ltd.
Allahabad Bank
American Express Bank Ltd.
Andhra Bank
ANZ Grindlays Bank Ltd.
Arab Bangladesh Bank Ltd.
Bank Internasional Indonesia
Bank of America National Trust and Savings Association
Bank of Bahrain and Kuwait B.S.C.
Bank of Baroda
Bank of Ceylon
Bank of India
Bank of Madura Ltd.
Bank of Maharashtra
Bank Muscat International S.A.O.G
Bank of Nova Scotia
Bank of Punjab Ltd.
Bank of Rajasthan Ltd.
Bank of Tokyo-Mitsubishi Ltd.
Banque Nationale De Paris
Barclays Bank p.l.c.
Benares State Bank Ltd.
Bharat Overseas Bank Ltd.
Bombay Mercantile Co-operative Bank Ltd.
The British Bank of the Middle East
Canara Bank
Catholic Syrian Bank Ltd.
Central Bank of India
Centurion Bank Ltd.
The Chase Manhattan Bank
Chinatrust Commercial Bank
Cho Hung Bank
Citibank N.A.
City Union Bank Ltd.
Commerzbank A.G.
Corporation Bank
Credit Agricole Indosuez
Credit Lyonnais
Dena Bank
Deutsche Bank Aktiengesellschaft
The Development Bank of Singapore Ltd.
Development Credit Bank Ltd.
Dhanalakshmi Bank Ltd.
Dresdner Bank A.G.
Federal Bank Ltd.
The Fuji Bank Ltd.
Global Trust Bank Ltd.
HDFC Bank Ltd.
The Hongkong and Shanghai Banking Corporation Ltd.
ICICI Banking Corporation Ltd.
IDBI Bank Ltd.
Indian Bank
Indian Overseas Bank
IndusInd Bank Ltd.
Internationale Nederlanden Bank (ING Bank)
Jammu and Kashmir Bank Ltd.
KBC Bank N.V
Karnataka Bank Ltd.
Karur Vysya Bank Ltd.
Krung Thai Bank Public Company Ltd.
Lakshmi Vilas Bank Ltd.
Maharashtra State Co-operative Bank Ltd.
Mashreq Bank p.s.c.
Morgan Guaranty Trust Co. of New York
Nedungadi Bank Ltd.
Oman International Bank S.A.O.G.
Oriental Bank of Commerce
Oversea-Chinese Banking Corporation Ltd.
Punjab National Bank
Punjab and Sind Bank
The Sakura Bank Ltd.
Sangli Bank Ltd.
Sanwa Bank Ltd.
Saraswat Co-operative Bank Ltd.
SBI Commercial and International Bank Ltd.
The Siam Commercial Bank Ltd.
Societe Generale
Sonali Bank
South Indian Bank Ltd.
Standard Chartered Bank
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Indore
State Bank of Mauritius Ltd.
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
The Sumitomo Bank Ltd.
Syndicate Bank
Tamilnad Mercantile Bank Ltd.
Thomas Cook (India) Ltd.
The Toronto Dominion Bank
UCO Bank
Union Bank of India
United Bank of India
United Western Bank Ltd.
UTI Bank Ltd.
Vijaya Bank
Vysya Bank Ltd.
B. Institutions holding restricted authorisation to deal in foreign exchange
Export-Import Bank of India
Industrial Credit & Investment Corporation of India Ltd.
Industrial Development Bank of India
Industrial Finance Corporation of India
SBI Factors and Commercial Services Pvt. Ltd.
Small Industries Development Bank of India