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Foreign Exchange Management (Deposit) Regulations 2000 – Deposits in Indian Companies by NRI’s – Conditions Changed


Notification No: RBI Notification No FEMA 121/2004 RB*

G.S.R. 494(E) . -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 amendments in the Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time, namely :-

1. Short title and commencement.-

(i) These Regulations may be called the Foreign Exchange Management (Deposit) (Amendment) Regulations, 2004.

(ii) They shall come into force from the 24th day of April, 2004.

2. Amendment of the Regulations. -In the Foreign Exchange Management (Deposit) Regulations 2000, (i) in Regulation 7, for Sub-regulations (1) and (2), the following shall be substituted:

"(1) A company registered under Companies Act, 1956 or a body corporate created under an Act of Parliament or State Legislature shall not accept deposits on repatriation basis from a non-resident Indian.

(2) A company registered under Companies Act, 1956 or a body corporate created under the Act of Parliament or State Legislature may renew the deposits which had been accepted on repatriation basis from a non-resident Indian subject to terms and conditions mentioned in Schedule 6.

(3) A company registered under Companies Act, 1956 or a body corporate a proprietary concern or a firm in India may accept deposits from a non-resident Indian on non-repatriation basis, subject to the terms and conditions mentioned in Schedule 7.

(ii) In Schedule 7,

Clause (v) shall be substituted as under ¬

"The amount of deposit shall be received by debit to NRO account only, provided that the amount of the deposit shall not represent inward remittances or transfer of funds from NRE/FCNR(B) accounts into the NRO account."


Sd/-
(Shyamala Gopinath)
Executive Director
 
Ozg FEMA Consultant
Ozg Consulting (P) Limited

Email: fema.consultant@ozg.co.in