Section 10(1)(b) of FERA 1973 provides that where Reserve Bank has directed that any payment due to a non-resident be made to a blocked account in his name with a bank in India,the crediting of the dues to the blocked account shall, to the extent of the sum credited, be a good discharge to the person making the payment. It is, however, essential that the blocked accounts are opened in the names of actual non-resident beneficiaries and that the amounts are held by banks to their order. Unless this is done, the person making the payment will not obtain the legal discharge available under the above provision.