OPENING AND MAINTENANCE OF RUPEE/FOREIGN CURRENCY VOSTRO ACCOUNTS OF NON-RESIDENT EXCHANGE HOUSES

OPENING AND MAINTENANCE OF RUPEE/FOREIGN CURRENCY VOSTRO ACCOUNTS OF NON-RESIDENT EXCHANGE HOUSES

A.P. (DIR SERIES) CIRCULAR NO. 09/A.P.(FL/RL SERIES) CIRCULAR NO. 01, DATED 29-8-2011

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to the A.P.(DIR Series) No.28 [A.P(FL/RL Series) Circular No. 02] dated 6-2-2008 on the Memorandum of instructions for Opening and Maintenance of Rupee/Foreign Currency Vostro accounts of Non-resident Exchange Houses and the subsequent amendments thereto.

2. In terms of para (A)(1) of Annex-I of the aforementioned circular, under the Rupee Drawing Arrangements (RDAs), inward remittances for permissible purposes are received in India through Exchange Houses situated in Gulf countries, Hong Kong and Singapore, with prior approval of the Reserve Bank. With a view to extending the scope of the said Arrangement to other jurisdictions, it has been decided to extend the Rupee Drawing Arrangements (RDAs) only under the Speed Remittance procedures to Exchange Houses situated in Malaysia.

3. The other instructions issued vide the abovementioned circular, as amended from time to time remain unchanged.

4. AD Category-I banks may bring the contents of this circular to the notice of their constituents concerned.

5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.