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Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations Amended


Notification No: RBI Notification No FEMA 117/2004 RB*

G.S.R. 453(E): In exercise of the powers conferred by Clause (e) 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 Notification No. FEMA 4/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, namely:-

1. Short title and commencement

(i) These Regulations may be called the Foreign Exchange Management (Borrowing and Lending in Rupees) (Second Amendment) Regulations, 2004

(ii) The shall come into force on the 25th day of May, 2004.

2. Amendment of the Regulations

In the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, in Regulation 8, in Sub-regulation (d), after the words utilization of the loan, the following shall be added, namely:

or by any relative of the borrower in India by crediting the borrowers loan account through the bank account of such relative.

Explanation: The word `relative means `relative as defined in Section 6 of the Companies Act, 1956.


Sd/-

(Shyamala Gopinath)
Executive Director
F. No. 1/23/EC/2000/Vol.II

* Published in the Gazette of India on 16/7/04.
 
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