Individuals of Bangladesh need not to take prior approval of RBI for opening an NRO Rupee account

Fema (Deposit) (second Amendment) Regulations, 2013 - Amendment in Schedule 3

Notification [No.FEMA.253/2013/RB]/GSR 26(E), Dated 2-1-2013

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), the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No. FEMA. 5/2000-RB, dated May 3, 2000), namely: -

Short title and commencement:-

1. (i) These regulations may be called the Foreign Exchange Management (Deposit) (Second Amendment) Regulations, 2013.

(ii) They shall come into force from the date of their publication in the Official Gazette.

Amendment of the Regulations:-

2. In the Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No.FEMA.5/2000-RB, dated May 3, 2000) in Schedule-3,

(a)  in paragraph 1, in sub-para (c)

 (i)  the word "Bangladesh" shall be omitted in Notes A;

 (ii)  the following Notes, namely (C) and (D) shall be inserted after Note B.

"(C) Opening of accounts by individual/s of Bangladesh nationality may be allowed by authorised dealer or authorised bank, subject to satisfying itself that the individual/s hold a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned;

(D) Opening of accounts by entities of Bangladesh ownership requires approval of Reserve Bank."

(b)  In Paragraph 10, after sub-para (ii) the following sub-para shall be inserted

"(iii) The accounts' opened by an authorised dealer or an authorised bank in respect of individual/s of Bangladesh nationality shall be reported by the authorised dealer/authorised bank branch to its Head Office and the Head Office of such authorised dealer/authorised bank shall forward a quarterly report containing details of Name of the Individual(s), Passport Number, Issuing Country/State, Name of the FRO/FRRO, Date of issue of Residential Permit and validity thereof, to the Ministry of Home Affairs (Foreigners Division) on Quarterly basis".

Explanation: 'Quarterly basis' means, quarter as at end of March/June/September and December of every year."