RBI permits residents to include resident 'close relatives' as joint holder in foreign currency account

Foreign Exchange Management (Foreign Currency Accounts by A Person Resident In India) (Second Amendment) Regulations, 2012 - Amendment in Regulation 5 and Schedule-I

Notification [No.Fema/239/2012-RB]/GSR 915(E), Dated 25-9-2012

In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of 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 (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 (Notification No. FEMA 10/2000-RB, dated May 3, 2000), namely :-

Short title and Commencement

1. (i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Second Amendment) Regulations, 2012.

(ii) They shall be deemed to have come into effect from the 15th day of September 2011@.

Amendment of the Regulations

2. In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 (Notification No. FEMA 10/2000-RB, dated May 3, 2000) (hereinafter referred to as 'the Principal Regulations'),

In Regulation 5 after sub-regulation (2), the following new sub-regulation (3) shall be added, namely :-

"(3) Resident individuals are permitted to include resident close relative(s) as a joint holder(s) in their Resident Foreign Currency account on 'former or survivor' basis. However, such resident Indian close relative joint account holder shall not be eligible to operate the account during the life time of the resident account holder.

Explanation: For the purpose of this sub-regulation, 'close relative' means 'relative' as defined in Section 6 of the Companies Act, 1956."

Amendment to the Schedule

3. In the Schedule to the Principal Regulations, in paragraph 4 after sub-paragraph (ii), a new sub-paragraph (iii) shall be added, namely :-

"(iii) Resident individuals are permitted to include resident close relative(s) as a join holder(s) in their EEFC account on 'former or survivor' basis. However, such resident Indian close relative(s), shall not be eligible to operate the account during the life time of the resident account holder.

Explanation : For the purpose of this sub-regulation, 'close relative' means relative as defined in Section 6 of the Companies Act, 1956."