CIR. NO. 18/2003-04-RB, DT. 20/09/2003

Foreign Currency Accounts by non-Diplomatic Staff of Foreign Embassies in India Holding Official Passport

Attention of Authorised Dealers is invited to Regulation No.4(3) of Notification No.FEMA 5/2000-RB dated May 3, 2000 in terms of which diplomatic missions and diplomatic personnel in India are allowed to hold deposits maintained in foreign currency accounts, subject to the conditions stipulated therein.

2. Reserve Bank has issued Notification No.FEMA 78/2002-RB dated November 27, 2002 (copy enclosed) amending Regulation No.4(3) of the Notification referred to above, allowing non-diplomatic staff of foreign embassies, who are the nationals of the concerned foreign countries and hold official passport, to maintain foreign currency deposit accounts. Accordingly, it will be in order for Authorised Dealers to allow diplomatic missions, diplomatic personnel and non-diplomatic staff of foreign embassies, who are the nationals of the concerned foreign countries and hold official passport, to maintain foreign currency deposit accounts.

3. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999).

Yours faithfully,

Grace Koshie
Chief General Manager

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Reserve Bank of India
Exchange Control Departemnt
Central Office Mumbai-400 001

Notification No.FEMA.78/2002-RB

November 27, 2002

Foreign Exchange Management (Deposit) (Amendment) Regulations, 2002

In exercise of the powers conferred by clause (f) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in partial modification of its Notification No.FEMA 5/2000-RB dated 3rd May, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Deposit) Regulations 2000, namely :-

1. Short title and Commencement

(i) These Regulations may be called the Foreign Exchange Management (Deposit) (Third Amendment) Regulations, 2002.

(ii) They shall come into force on their publication in the Official Gazette.

2. Amendment of the Regulations

In the Foreign Exchange Management (Deposit) Regulations 2000, in Regulation 4, in sub-regulation (3)

i. For the words "diplomatic missions and personnel", the words "diplomatic missions, diplomatic personnel and non-diplomatic staff, who are the nationals of the concerned foreign countries and hold official passport of foreign embassies" shall be substituted.

ii. In Clause (c) the words "and non-diplomatic staff" shall be inserted after the words "diplomatic personnel".

Sd/-
( K. J. Udeshi )
Executive Director

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