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FEMA - FAQ
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FEMA - FAQ
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  1. 1. Compounding of Contraventions under FEMA, 1999 - As on Oct 01, 2024

  2. What is meant by contravention and compounding of contravention?
  3. Who can apply for compounding?
  4. When should one apply for compounding?
  5. What is the procedure for applying for compounding?
  6. Are any fees required to be paid for seeking compounding?
  7. What are the details required to be filled in the application form?
  8. Where should one apply for compounding?
  9. Can an application for compounding be sent to the Reserve Bank pending fulfillment of certain obligations?
  10. What are sensitive contraventions?
  11. Is it mandatory to appear for the personal hearing?
  12. Can the applicant authorise another person to attend the personal hearing?
  13. How is the compounding process brought to conclusion?
  14. What is the criteria for calculation of compounding amount?
  15. When should the amount indicated in the order be paid?
  16. How does the application for compounding finally get disposed of?
  17. What happens if the amount is not paid within 15 days of the order?
  18. Can there be an appeal against the order of the Compounding Authority?
  19. What is the timeframe for completing the compounding process?
  20. Where can one get more details about compounding?

  21. 2. External Commercial Borrowings (ECB) and Trade Credits - As on Jun 26, 2023

  22. Where can one get the details of extant External Commercial Borrowings (ECB) and Trade Credits (TC) framework?
  23. Do FCNR (B) loans given by AD Category I banks come under the ECB framework?
  24. What precautions have to be taken before raising loan from non-residents?
  25. Whose responsibility is it to ensure compliance with ECB guidelines?
  26. Are LLPs eligible to raise ECBs?
  27. Can INR denominated ECB be converted into foreign currency ECB?
  28. Is the minimum equity holding requirement of foreign equity holder (direct/indirect) applicable where the end uses is other than general corporate purpose/working capital/repayment of Rupee loans?
  29. A foreign equity holder holding minimum 25% direct equity holding in the borrowing entity or minimum indirect equity holding of 51% in the borrowing entity is a recognised lender. Can the foreign equity holder dispose-off the holding once ECB is contracted?
  30. Can Indian banks participate in the process of issuance of Rupee denominated bonds overseas in any other manner?
  31. Can persons resident in India subscribe to bonds (foreign currency/INR) issued by eligible ECB borrowers in overseas centres or IFSCs as permitted in the ECB framework?
  32. Individuals can be recognised lenders if they are foreign equity holders or for subscription to bonds/debentures listed abroad. Should such lenders also be from FATF/IOSCO compliant jurisdictions?
  33. How is average maturity period calculated?
  34. Can door-to-door maturity be used in lieu of average maturity?
  35. In case of an ECB raised from foreign equity holder and utilized for general corporate purpose/working capital/repayment of Rupee loans, can repayment of principal of ECB start before the completion of 5 years?
  36. Should the proposed ECB be added to all outstanding ECBs for the purpose of ECB liability to equity ratio?
  37. Does the equity in “ECB liability to Equity ratio” include non-convertible preference capital?
  38. Should the proposed ECB be added to all outstanding ECBs for arriving at the individual limit for raising of ECBs?
  39. Is the debit balance in the profit and loss account for losses incurred by the Eligible Borrower, if any, required to be deducted from the free reserve while calculating the ECB liability-equity ratio?
  40. Can an eligible borrower simultaneously raise both Foreign Currency and INR denominated ECBs?
  41. Is the enhancement of ECB amount permitted under the delegated powers?
  42. Does all-in-cost ceiling apply on a continuous basis or can it be calculated even on an average basis?
  43. Can interest during construction stage be paid out of ECB borrowings?
  44. Is the reimbursement of expenditure incurred in the past a permissible end-use under the ECB framework?
  45. Can ECB be availed of for making equity investment domestically or buying goodwill?
  46. Can ECB be availed of for making contribution in an LLP?
  47. Can an eligible borrower raise fresh foreign currency ECB for repayment of existing Rupee denominated ECB?
  48. Can ECB proceeds be used by eligible resident borrowers for investment in their overseas JV/WOS as per the extant overseas investment guidelines?
  49. Is on-lending treated as working capital for borrowers who are engaged in the business of on-lending?
  50. Can the housing finance companies raise ECB for on-lending to individual borrowers exclusively for flats/units in the affordable housing projects as defined in Harmonised Master List of Infrastructure Sub-sectors notified by Government of India?
  51. Can ECB raised under the earlier ECB framework be refinanced/ partially refinanced through an ECB raised under extant ECB framework?
  52. Can refinancing/ partial refinancing be undertaken under auto route even for ECBs raised under approval route, subject to compliance with guidelines?
  53. Is refinancing of ECBs raised from foreign equity holders and utilised for working capital/ general corporate purpose/ repayment of Rupee loans permitted?
  54. Can an entity raising INR ECB including issuance of Rupee denominated bonds overseas, assume foreign currency risk on account of liabilities arising out of such ECBs?
  55. Can the existing hedge(s) for ECBs be rolled over to the extent of 100 per cent of outstanding ECB exposure?
  56. What are the permitted derivative products for hedging of ECB?
  57. What precautions have to be taken at the time of filing of Form ECB in respect of an ECB?
  58. How are actual transactions of an ECB reported to RBI?
  59. In light of the New ECB framework, does the borrower need to file revised Form ECB?
  60. Is LSF applicable to old ECB 2 returns also?
  61. Is LSF applicable for each Form ECB 2 and to nil returns as well?
  62. Can the interest accrued on ECB be converted into Equity under the extant norms?
  63. When ECB is partially converted into equity, should the remaining ECB amount comply with all the ECB guidelines?
  64. Can fixed deposits created out of ECB proceeds, pending utilization, be renewed after completion of maximum permitted period?
  65. Can SBLC be issued by AD banks on behalf of their customers for availing short term trade finance from overseas lenders in foreign currency?
  66. As per the new guidelines AD banks are required to report permissions granted for settlement of delayed import dues as per the applicable procedure. AD banks are also required to report permissions granted for settlement of delayed import dues by Regional offices of Reserve Bank on a similar basis. Is the mandated reporting only for approvals accorded for extensions up to one year/three years for non-capital/capital goods respectively?

  67. 3. Liberalised Remittance Scheme - As on Apr 06, 2023

  68. What is the Liberalised Remittance Scheme (LRS) of USD 2,50,000 ?
  69. What are the prohibited items under the Scheme?
  70. What are the purposes under FEM (CAT) Amendment Rules, 2015, under which a resident individual can avail of foreign exchange facility?
  71. Under LRS are resident individuals required to repatriate the income earned on investments abroad, over and above the principal amount?
  72. Can remittances under the LRS facility be consolidated in respect of family members?
  73. Is the AD required to check permissibility of remittances based on nature of transaction or allow the same based on remitter's declaration?
  74. Is it mandatory for resident individuals to have Permanent Account Number (PAN) for sending outward remittances under the Scheme?
  75. Are there any restrictions on the frequency of the remittance?
  76. Resident individuals (but not permanently resident in India) can remit up to net salary after deduction of taxes. However, if he has exhausted the limit of USD 2,50,000 as net salary remittance and desires to remit any other income under LRS is it permissible as the limit will be over and above USD 2,50,000?
  77. Para 5.4 of AP DIR Circular 106 dated June 01, 2015 states that the applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance for capital account transactions. Whether this restriction applies to current account transactions?
  78. Are there any restrictions towards remittances to Mauritius and Pakistan for permissible current account transactions?
  79. What are the requirements to be complied with by the remitter?
  80. Can remittances be made only in US Dollars?
  81. Are intermediaries expected to seek specific approval for making overseas investments available to clients?
  82. Are there any restrictions on the kind/quality of debt or equity instruments an individual can invest in?
  83. Whether credit facilities (fund or non-fund based) in Indian Rupees or foreign currency can be extended by AD banks to resident individuals?
  84. Can bankers open foreign currency accounts in India for residents under LRS?
  85. Can an Offshore Banking Unit (OBU) in India be treated on par with a branch of the bank outside India for the purpose of opening of foreign currency accounts by residents under the Scheme?
  86. What are the documents required for withdrawal/remittance of foreign exchange for purposes mentioned in para 1 of Schedule III to FEM (CAT) Amendment Rules, 2015?
  87. Whether documents viz 15 CA, 15 CB have to be taken in all outward remittance cases including remittances for maintenance etc.?
  88. Will the expenses incurred by an LLP to sponsor the education expense of its partners who are pursuing higher studies for the benefit of the LLP will be outside the LRS limit of such individuals (partners)?
  89. Clarification on remittance by sole proprietor under LRS.
  90. Whether prior approval is required to open, maintain and hold foreign currency account with a bank outside India for making remittances under the LRS?
  91. What are the facilities under Schedule III of FEM (CAT) Amendment Rules, 2015 available for persons other than individual?
  92. Can a resident individual make a rupee loan to a NRI/PIO who is a close relative of resident individual, by of crossed cheque/ electronic transfer?
  93. Can a resident individual make a rupee gift to a NRI/PIO who is a close relative of resident individual, by of crossed cheque/ electronic transfer?

  94. 4. Purchase of Immovable Property - As on Apr 06, 2023

  95. Can a resident continue to hold immovable property outside India which was acquired by him when he was a non-resident?
  96. Can a resident individual send remittances and purchase property outside India?
  97. To whom do the restrictions of transferring property outside India not apply?
  98. How can immovable property be acquired outside India by a resident?
  99. How can a Non-resident Indian (NRI) [NRI refers to a person resident outside India who is a citizen of India] and an Overseas Citizen of India (OCI) [Overseas Citizen of India (OCI) is a person resident outside India who is registered as an Overseas Citizen of India Cardholder under Section 7(A) of the Citizenship Act, 1955.] acquire immovable property in India?
  100. What are the accepted modes of payment for property acquired in India?
  101. Can Foreign Embassies/ Diplomats/ Consulate Generals acquire property in India?
  102. Can foreign nationals acquire property in India?
  103. How can a Long Term Visa (LTV) holder acquire property in India?
  104. Can a spouse of an NRI/ OCI who is not a NRI/ OCI acquire property in India?
  105. Can a non-resident repatriate the sale proceeds of immovable property in India?
  106. What is the meaning of transfer?

  107. 5. Introduction of Legal Entity Identifier for Cross-border Transactions - As on Feb 07, 2023

  108. Should an AD bank obtain a valid LEI for transactions less than INR 50 crore even if the customer has not done any transaction of INR 50 crore or above on or after October 1, 2022?
  109. Is it mandatory to obtain and validate the LEI of the non-resident counterparty as well? Does the stipulation of reporting LEI for all transactions of an entity, irrespective of transaction size, once the entity has obtained an LEI number apply for non-residents as well?
  110. Is it mandatory to obtain LEI in case of transactions to and from a non-resident’s account with an AD bank in India?
  111. Does the responsibility to obtain LEI lie with an AD bank acting in the capacity of a correspondent bank?
  112. Is there any specific field in the SWIFT message where LEI needs to be captured?
  113. For transactions involving three parties (e.g., merchanting trade transactions), the AD bank has to obtain LEI for which party/ parties?
  114. In case of non-fund facilities such as Letter of Credit, guarantee, etc., should the LEI validation be done at the issuance stage itself?

  115. 6. International Trade Settlement in Indian Rupees (INR) - As on Dec 01, 2022

  116. How is the Special Rupee Vostro Account (SRVA) different from the already existing Rupee Vostro Account provided for under Foreign Exchange Management (Deposit) Regulations, 2016?
  117. What is new in this arrangement?
  118. Whether RBI approval is required for opening such Special Rupee Vostro Accounts?
  119. What is Correspondent banking?
  120. Will this be a bank to bank arrangement or country to country arrangement?
  121. What is the procedure for opening a Special Rupee Vostro Account with an Indian AD bank?
  122. Is the Indian branch of foreign bank eligible to open Special Rupee Vostro Account of headquarter branch/any other branch situated in any foreign country?
  123. Can the existing Rupee Vostro Accounts of banks from trading partner countries be used as Special Rupee Vostro Accounts under the new mechanism?
  124. Can foreign bank (correspondent bank) maintain more than one Special Rupee Vostro Account with different AD banks?
  125. Can an AD bank in India open only one Special Rupee Vostro Account from a foreign country?
  126. How will the exchange rate be determined?
  127. How would the exchange rate between INR and the currency of the trading partner country be market-determined in the absence of direct quote for the pair of currencies?
  128. Whether this will address the difficulties in cross border payments with specific countries.
  129. Can balances in Special Rupee Vostro Account be repatriated?
  130. Whether income from INR balance in SRVA can be repatriated?
  131. Can balances in Special Rupee Vostro account be used for FDI, ECB?
  132. What are the different types of investment where surplus balance can be invested?
  133. Whether balances can be transferred from Special Rupee Vostro Account (SRVA)?
  134. Whether INR balance in SRVA can be hedged?
  135. For investment in T-Bills and government securities from funds of SRVA with AD bank, whether FPI license is required by the account holder overseas bank?
  136. Which bank will be responsible for reporting for cross border transaction either AD bank in India or correspondent bank?
  137. How this new mechanism will benefit the Indian traders?

  138. 7. Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999 - As on Nov 14, 2022

  139. Which entities are required to submit the FLA return?
  140. What is the due date of submission of the FLA return?
  141. What will be the consequences in case we do not file the said FLA Return by July 15, as our accounts are not yet audited, and we do not wish to file it with unaudited figures. Will there be any imposition of penalty or prosecution initiated against the entity by RBI or FEMA?
  142. What information should be reported in FLA return, if balance sheet of the entity is not audited before the due date of submission?
  143. In case where account closing period of the entity is different from reference period (end-March), can we report the information as per account closing period?
  144. If the old/new entity fails to fill the FLA form before the due date, can the entity submit the FLA form?
  145. If an old/new entity wants to fill the previous year FLA form, can they do so?
  146. If an old/new entity wants to modify the previous version of FLA form, can they do so?
  147. If an entity did not receive FDI or made overseas investment in any of the previous year(s) including the current year, do we need to submit the FLA return?
  148. If an entity has only share application money, then is that entity supposed to submit the FLA return?
  149. If an entity has not received any inward FDI / made overseas investment in the latest FY, do they need to submit the FLA return?
  150. Whether FLA return is required to be submitted by Registered Partnership Firms (Registered under Partnership Registration Act) or branches or trustees, who have made Overseas Direct Investment or it is mandatory only for Companies (Registered under Companies Act, 1956)?
  151. Is it required to submit Annual Performance Report for ODI if we have submitted FLA Return?
  152. If non-resident shareholders of an entity have transferred their shares to the residents during the reporting period, then whether that entity is required to submit the FLA return?
  153. If an entity issues the shares to non-resident on non-repatriable basis, whether that entity is required to submit the FLA return?
  154. Is it required to submit any financial statements like balance sheet or P&L accounts (audited/ unaudited) along with the FLA return?
  155. How should entities report FLA return to RBI?
  156. How would an acknowledgement be provided to us on submission of the form?
  157. How can an AIF (Alternative Investment Fund) file the FLA Returns?
  158. Where should we contact regarding any query/ clarification for submission of FLA Return?
  159. How can an entity get approval for revising the previous year returns?
  160. What is Direct investment?
  161. What is meant by “Equity Capital” under Direct Investment?
  162. What is “Other Capital” under Direct Investment?
  163. What is meant by “Residence of Enterprises”?
  164. What are definitions of “Foreign Subsidiary”, “Foreign Associate” and “Special Purpose Vehicle”
  165. What are participating and non-participating preference shares?
  166. What is Foreign Direct Investment (FDI) in India?
  167. What valuation guidelines are used while reporting foreign equity investment for unlisted companies?
  168. What valuation guidelines are used while reporting foreign equity investment for listed companies?
  169. What is the definition of related party?
  170. Whether, any assets or liabilities for Indian party (i.e. domestic assets and liabilities) are to be included in the FLA return?
  171. What is Direct Investment abroad by Indian companies?

  172. 8. Annual Return on FLA - Registration guidelines - General Instructions and Definitions - As on July 21, 2021

  173. What will be the consequences in case we do not file the said FLA Return by 15th July, as our accounts are not audited as yet, and we do not wish to file it with unaudited figures. Will there be any imposition of penalty or prosecution initiated against the company by RBI or FEMA?
  174. What information should be reported in FLA return, if balance sheet of the company is not audited before the due date of submission?
  175. In case where account closing period of the company is different from reference period (end-March), can we report the information as per account closing period?
  176. If the old/new company fails to file the FLA form before the due date; can the company submit the FLA form?
  177. If an old/new company wants to file the previous year FLA form; can the company file the previous year FLA form?
  178. If an old/new company wants to delete the previous version of FLA form or modify; can the company delete/modify the FLA return?
  179. What is meant by “Residence of Enterprises”?
  180. What is Direct investment?
  181. What is meant by “Equity Capital under Direct Investment”?
  182. What is “Other Capital under Direct Investment”?
  183. What are definitions of “Foreign Subsidiary”, “Foreign Associate” and “Special Purpose Vehicle”
  184. Which entities are required to submit the FLA Return?
  185. If a company / LLP / Others did not receive FDI or made overseas investment in any of the previous year(s) including the current year, do we need to submit the FLA return?
  186. Whether a company needs to submit the FLA Return, if it has received only share application money?
  187. If the company has not received any inward FDI / made overseas investment in the latest year, do they need to submit the FLA Return?
  188. Is it required to submit any financial statements like balance sheet or P&L accounts (audited/ unaudited) along with the FLA return?
  189. Whether FLA return is required to be submitted by registered partnership firms (registered under Partnership Registration Act) or branches or trustees, who have made overseas direct investment, or it is mandatory only for companies (registered under Companies Act, 1956)?
  190. If non-resident shareholders of a company have transferred their shares to the residents during the reporting period, then whether that company is required to submit the FLA Return?
  191. If company had issued the shares to non-resident on non-repatriable basis, whether that company is required to submit the FLA Return?
  192. How does the company report data and submit the FLA return to the RBI?
  193. What is the system requirement at company’s side for filling the FLA Return through web-based online portal?
  194. Where can company / LLP / Others get the format of Annual Return on Foreign Liabilities and Assets (FLA Return)?
  195. How would an acknowledgement be provided to us on submission of the form?
  196. What are participating and non-participating preference shares?
  197. How the Net Worth of the company is calculated?
  198. Whether equity participation includes equity shares as well as compulsorily convertible debentures (CCD)?
  199. What is Foreign Direct Investment (FDI) in India?
  200. What valuation guidelines are used while reporting foreign equity investment for unlisted companies?
  201. What valuation guidelines are used while reporting foreign equity investment for listed companies?
  202. What constitute the ‘Other Capital’ component of FDI?
  203. What is the definition of related party?
  204. In the FLA Return, whether FDI should be reported based on the country of immediate investor or country of ultimate holding company? Where should we report the receivable/ payables with non-resident ultimate holding company?
  205. Whether, any assets or liabilities for Indian party (i.e. domestic assets and liabilities) are to be included in the FLA Return?
  206. What is Direct Investment abroad by Indian companies?
  207. If the overseas subsidiaries/ joint venture company’s accounting period is different from the reference/reporting period (i.e. April-March) in the Return, then what information should we furnished in Section IV?
  208. What constitute the ‘Other Capital’ component of ODI?

  209. 9. Annual Return on FLA - Information Reporting (FLAIR) – Online Web Based Reporting System - As on July 21, 2021

  210. Which entities are required to submit the FLA Return?
  211. How does the company report data and submit the FLA return to the RBI?
  212. How can an entity submit online Annual Return on Foreign Liabilities and Assets (FLA Return)?
  213. When does an entity need to fill registration form?
  214. What are the required documents for registering on the FLAIR portal?
  215. Who is an authorized person?
  216. What is authority letter?
  217. What is verification letter?
  218. What are the checks required for successful error free verification?
  219. What is relevance of username and email of authorised person in registration form?
  220. Does an entity require to provide sign or seal of the signing authority in the authority letter?
  221. Where would I receive the login credentials for entity-user?
  222. What is the validity period of default password sent to the authorized person’s email?
  223. What is the validity of the OTP sent to the authorized person’s email for login?
  224. I have registered as an entity-user but not yet received password to log-in the system. Why?
  225. What should I do if registration login page/ FLA online form hangs and I couldn’t enter the details?
  226. What if I do not receive my OTP / OTP gets delayed while filing the FLA form?
  227. I entered the wrong password several (5) times and now I cannot login the FLA webpage, what should I do?
  228. What is the procedure to change the details of Authorized Person for FLA form submission?
  229. If an entity has forgotten their username and password, should they re-register on the portal?
  230. When should an entity raise a de-activation request?
  231. How can an AIF (Alternative Investment Fund) file the FLA Returns?
  232. What needs to be mentioned under Unique Identification Number (UIN) for AIF at the time of FLA user registration?
  233. Is an AIF registered as Trust, required to file FLA? If yes whether single FLA return to be filed for the AIF or separate FLA return to be filed for each scheme under the AIF?
  234. I am not able to furnish information in Identification Details for “Name of the Indian Company”, “PAN Number”, “CIN Number” and “Email (Head of institution)”?
  235. Who is the contact person?
  236. What numbers should an entity use to file the FLA returns if the account closing date is different from 31st March of the respective year?
  237. Where can we find the detailed description of NIC-2008 code (item-6)?
  238. If an entity has more than one activity during the year, then which NIC code should be reported by company (item-6)?
  239. What are classes/types that a company may have?
  240. What is the identification of the reporting company (in terms of inward FDI) stated in item no 9?
  241. What is the meaning of Foreign Technical Collaboration (item-11)?
  242. Our Entity Name/CIN/LLPIN/UIN has changed. Since this is auto populated in Section I, how can I change the same?
  243. Our Head of the Institution has changed. How can we change this details in Section I?
  244. In case we re-register on the portal, how will we get the documents of earlier FLA Returns filled?
  245. How is Section II, item 1.0, i.e., Total Paid-Up Capital calculated?
  246. I am unable to enter the paid-up capital of the entity in item 1.0 of Section II. What should I do?
  247. How is Section II, item 2.3, Non-Resident Equity and Participating Preference Shares Capital % calculated?
  248. Whether, in Section II- Item 2.3, the Non-Resident Equity and Participating Preference Shares Capital (%) is being calculated with respect to Item 1.0 (Total Paid-up capital) or Item 1.1 (Total Equity and participating Preference Shares Capital)?
  249. In the Section II Block 2 of FLA form, what should I take for convertible preference share?
  250. Item number 3, 4, 5 should be reported in INR LAKH. What does INR LAKH mean?
  251. Where should we report the premium on issue of Equity Share Capital?
  252. What should we include in item 5, Sales and Purchase (in Section II)?
  253. What is meant by “Month and Year of receiving FDI first time in our Company/LLP/Others”?
  254. What is “Edit / View / Delete FDI (DI) Details” details in section III, item no. 1.b FDI and 2.b DI?
  255. What is Save/Add FDI (DI) in Section III, item 1.b FDI and 2.b DI?
  256. In Section III Block 1 of FLA form, which will be the date of first receipt of FDI received?
  257. What is meant by “Disinvestments in India during the year” / “Disinvestments abroad during the year”?
  258. Where should we report the non-participating preference share issued to non-resident?
  259. Where should we report Fully/Partially/Non-convertible debentures issued to the non-residents in FLA Return?
  260. What treatment should be given to share application money received from non-resident investor?
  261. On validating section III of the FLA Return we are getting the error message regarding mismatch of non-resident equity and participating preference share holding (%) between Section III and Section II. How should we resolve the error?
  262. What constitute in the Equity Securities under portfolio Investment (3 of Section III)?
  263. What constitute in the Debt Securities under portfolio Investment?
  264. In case of item 4. Other Investment (section III), it is written that outstanding liabilities with foreign unrelated parties to be given. Please clarify what transactions are to be reported under the same?
  265. Will EEFC account with Bank come under item 4. Other Investment of section III (Currency and Deposits)?
  266. Whether, any assets or liabilities for Indian party (i.e., domestic assets and liabilities) are to be included in the FLA Return?
  267. What exactly is the meaning of 1.b ODI in Section IV under Foreign assets?
  268. If the overseas subsidiaries/ joint venture company’s accounting period is different from the reference/reporting period (i.e., April-March) in the Return, then what information should we furnished in Section IV?
  269. What is “Edit / View / Delete ODI(DI)” details in Section IV, item no. 1.b ODI and 2.b DI?
  270. What is Save/Add ODI(DI/PI) in Section IV, item 1.b FDI, 2.b DI and 3.b PI?
  271. What information should we report in item 3.7, item 3.7.1, item 3.8, item 3.8.1 in Section IV?
  272. In case where overseas company (DIE) is unlisted, how can we calculate the market value of overseas equity investment using OFBV method under 1.b ODI of Section IV?
  273. How will we do the valuation of the equity capital for listed DIE?
  274. What constitute in the Equity Securities under block 3, PI-Portfolio Investment Abroad in Section IV?
  275. What constitute in the Debt Securities under Portfolio Investment Abroad, Section IV?
  276. In case of 4. Other Investments (Section IV), it is written that outstanding claims on foreign unrelated parties to be given. Please clarify what transactions are to be reported under the same?
  277. I have observed that I have entered wrong data in one Section of the FLA Form that I have filled. How can I modify my inputs?
  278. How would I get a copy of the FLA Form I have submitted to RBI?
  279. How would an acknowledgement be provided to us on submission of the form?
  280. What should we do if we do not have the audited numbers ready before the due date to file the FLA return?
  281. How can I get approval for revising the previous year returns as mentioned in Q71?

  282. 10. Miscellaneous forex facilities - As on Oct 21, 2021

  283. Who is an Authorized Dealer (AD)?
  284. Who are authorized by the Reserve Bank to sell foreign exchange for travel purposes?
  285. How much foreign currency can be carried in cash for travel abroad?
  286. Q 4. How much Indian currency can be brought in while coming into India?
  287. How much foreign exchange can be brought in while visiting India?
  288. Can one pay by cash full rupee equivalent of foreign exchange being purchased for travel abroad?
  289. Is there any time-frame for a traveller who has returned to India to surrender foreign exchange?
  290. Should foreign coins be surrendered to an Authorised Dealer on return from abroad?
  291. Is there any category of visit which requires prior approval from the Reserve Bank or the Government of India?
  292. Whether permission is required for receiving grant/donation from abroad under the Foreign Contribution Regulation Act, 1976?
  293. Who is permitted to hold International Credit Card (ICC) and International Debit Card (IDC) for undertaking foreign exchange transactions?
  294. How much jewellery can be carried while going abroad?
  295. Can a resident extend local hospitality to a non-resident?
  296. Can residents purchase air tickets in India for their travel not touching India?
  297. Is meeting of medical expenses of a NRI close relative, in India, by Resident Individuals permitted?
  298. Can a person resident in India hold assets outside India?

  299. 11. Money Changing Activities - As on Oct 21, 2021

  300. Who are Authorised Persons under Foreign Exchange Management Act, 1999 (“FEMA”)? What are the different categories of authorisation/licence granted under Section 10(1) of FEMA 1999?
  301. What is the objective behind allowing FFMCs to do business?
  302. Whether a licence is mandatory for carrying out money changing business?
  303. Who can apply for an FFMC licence?
  304. Where can one submit the application for an FFMC licence?
  305. How to calculate Net Owned Funds (NOF)?
  306. Is NOF required to be maintained on an ongoing basis?
  307. What is the time frame within which a newly licensed FFMC should commence operations?
  308. When should an application for licence renewal be made?
  309. Under what circumstances can Reserve Bank revoke an FFMC licence?
  310. What are the money changing facilities presently available in India?
  311. What is the objective of the Scheme for appointing Franchisees by AD Category Banks, ADs Category-II and FFMCs for undertaking restricted money changing activities?
  312. What are the salient features of Franchisee Agreement?
  313. What is the procedure for submission of application by AD Category – I bank/ AD Category - II/ FFMC to the Reserve Bank for appointment of franchisees?
  314. What are the checks to be ensured by AD Category-I banks/ADs Category-II/FFMCs while conducting due diligence of Franchisees before appointing them?
  315. What are the criteria for selection of centres?
  316. What are the guidelines on provision for training of franchisees?
  317. What are the guidelines in respect of Reporting, Audit and Inspection of franchisees?
  318. Does a franchisee need to adhere to KYC/AML/CFT Guidelines?
  319. Can Authorised Dealers Category-II issue forex pre-paid cards?
  320. Can forex pre-paid cards be used at Duty Free Shops located at International Airports in India?
  321. What is the position of Papua New Guinea Paper Banknotes?
  322. What is the position of old generation ‘1000 shillings (Ksh)’ banknotes in Kenya?

  323. 12. Special Non-Resident Rupee Accounts - As on Nov 19, 2020

  324. What are the processes to be adopted for transactions undertaken through SNRR A/c?
  325. Who is responsible for FEMA compliance for trade transactions?
  326. Whether A2 reporting has to be undertaken by bank remitting the funds?
  327. Whether purpose code is to be used and who is responsible for FETERS reporting?
  328. What are the types of transactions permitted in SNRR A/c?
  329. Whether SNRR to SNRR A/c transfer permitted?
  330. Whether SNRR account holder can receive proceeds or make payments from/to the offshore accounts of the other offshore entities (i.e. other than the non-resident SNRR account holder)?
  331. Whether ACU guidelines will be followed in case shipment to ACU countries?
  332. Whether interest can be earned on SNRR balances or through term deposit?

  333. 13. Accounts in India by Non-residents - As on Feb 12, 2020

  334. Who is an NRI?
  335. Who is a PIO?
  336. What are the major accounts that can be opened in India by a non-resident?
  337. Can a Bangladeshi/ Pakistani national or an entity owned/ controlled from Bangladesh/ Pakistan have an account in India?
  338. What are the accounts that a tourist visiting India can open?
  339. What is an SNRR account? How is it different from a NRO account?
  340. What are the deposits that foreign Diplomatic missions/ personnel and their family members in India can hold?
  341. Can persons resident in Nepal and Bhutan have accounts in India?
  342. Can multilateral organisation have deposits in India?
  343. Can an Indian company accept deposits from non-residents in compliance with section 160 of the Companies Act, 2013?
  344. Can a Foreign Portfolio Investor or a Foreign Venture Capital Investor open a foreign currency account in India?
  345. Who can open an Escrow Account in India and for what purpose?

  346. 14. Remittances [Money Transfer Service Scheme (MTSS) and Rupee Drawing Arrangement (RDA)] - As on Jan 18, 2017

  347. What is Rupee Drawing Arrangement (RDA)?
  348. Who are non-resident Exchange Houses?
  349. What are the permissions needed for entering into such arrangements?
  350. What are the types of remittances which can be sent under RDA?
  351. Is there any limit on the amount of money which can be sent under RDA?
  352. Can cash payment be made to the beneficiary under RDA?
  353. Can the remittance be credited to the bank account of the beneficiary even if the bank does not have any tie-up with a non-resident Exchange House?
  354. What is Money Transfer Service Scheme (MTSS)?
  355. Who is an Overseas Principal?
  356. Who is an Indian Agent?
  357. What are the permissions needed for carrying out MTSS?
  358. What are the types of remittances which can be received under the MTSS?
  359. Is there any limit on the amount of money which can be sent under MTSS?
  360. Can cash payment be made to the beneficiary under MTSS?

  361. 15. Liaison / Branch / Project Offices of foreign entities in India - As on Dec 26, 2016

  362. What action the AD is required to take in case of any adverse reporting in Annual Activity Certificate (AAC) of LO/BO or non-submission of AACs?
  363. Can LO/BO maintain more than one account in India?
  364. Are LO/BO/PO required to register/report with Police authorities?
  365. Can an LO/BO/PO acquire property for its operation?
  366. Can an LO upgraded into BO, continue to have same PAN and bank account?
  367. Whether credit facility can be provided in foreign currency for PO?
  368. Once the PO has been set up in India for executing a specific project in India under general permission, at times, the overseas entity is awarded another project by the same or a different project awarding entity. In view of the same, can maintaining of bank account at entity level, filing of AACs, complying with submission of closure documentations on completion of the project and maintaining of books of accounts at entity level be complied with at PO entity level instead of at specific project level?
  369. Can agents of overseas shipping or airline companies continue to maintain foreign currency account with the designated AD Bank in India after such airline or shipping companies have set up BO in India?
  370. Whether there is any specific format in which application with State Police has to be filed for registration?
  371. Whether an LO can be upgraded under automatic route to BO under AD approval if overseas entity is eligible to open the BO under general permission?
  372. Whether for closure of additional office, the same procedures as mentioned in ‘Closure of BO/LO/PO’ need to be adhered to?
  373. Do AD banks need to obtain UIN from RBI for PO?
  374. If the applicant is a citizen of or is registered/incorporated in Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau and the application is for opening a BO/LO/PO in other cities/states excluding Jammu and Kashmir, North East region and Andaman and Nicobar Islands, can the AD bank permit the same without referring the matter to the Reserve Bank?
  375. Whether AD bank can approve the transfer of assets of LO/BO/PO to third resident party?
  376. Can a subsidiary of Indian company abroad open a BO in India and whether this will come under automatic route?
  377. If the subsidiary of Indian company is not financially sound can they submit a Letter of Comfort from their parent company which is an Indian company?
  378. Can AD bank approve for extension of the project account after the tenure of the project for genuine reasons like completion of warranty period, statutory works like Income tax assessments, VAT assessments, Service tax assessments, to make arrangements for the sale of assets etc.
  379. Can BO open FCY account for doing normal business transactions?
  380. Can BO/PO/LO have one more account with another AD bank (Agency bank for tax payment) for statutory payments when the AD with whom the account is maintained is not the agency bank?
  381. What are the permissible credits and debits to INR account of Project Office?
  382. Whether LC can be opened for BO in India for export/import of goods & in case of PO, local LC can be open for purchase of goods locally in India (local purchase of goods to execute a project)?
  383. Whether a branch office (BO) or project office (PO) can send outward remittances, permissible under FEMA, through any AD Category I bank or it has to be through the designated AD Category I bank only?

  384. 16. Exchange Rate – 1945-1971 - As on Sep 15, 2016

  385. “Please provide the details of Exchange Rate value of INR against USD dollar from the year 1947 till date”.

  386. 17. Remittance of Assets - As on Sep 02, 2016

  387. What is meant by Remittance of Assets?
  388. What are the assets out of/ from which funds may be remitted and by whom?
  389. Who is a Resident?
  390. What is meant by ‘not permanently resident’?
  391. Which are the cases related to Remittance of Assets for which prior approval of RBI is to be sought for effecting the remittance?
  392. What are the Tax implications in respect of remittance of assets?

  393. 18. Foreign Currency Accounts by Resident Individuals - As on Aug 01, 2016

  394. Who is a person resident in India?
  395. What is a foreign currency account?
  396. What are the major foreign currency accounts that can be opened in India by a resident individual?
  397. In what form can a foreign currency account in India be opened?
  398. When can a resident individual open a foreign currency account outside India?
  399. Can a resident continue to maintain an account outside India which was opened by him when he was a non-resident?
  400. What is the status of the account held outside India on the demise of the account holder?

  401. 19. Exchange Earners Foreign Currency (EEFC) Account - As on Jul 05, 2016

  402. What is an EEFC Account and what are its benefits?
  403. Who can open an EEFC account?
  404. What are the different types of EEFC accounts? Can interest be paid on these accounts?
  405. How much of one’s foreign exchange earnings can be credited into an EEFC account?
  406. Whether EEFC Account can be opened by Special Economic Zone (SEZ) Units?
  407. Is there any Cheque facility available?
  408. What are the permissible credits into this account?
  409. Can foreign exchange earnings received through an international credit card be credited to the EEFC account?
  410. What are the permissible debits into this account?
  411. Is there any restriction on withdrawal in rupees of funds held in an EEFC account?
  412. Whether the EEFC balances can be covered against exchange risk?
  413. Whether EEFC Account is permitted to be held jointly with a resident relative?

  414. 20. Swap Window for attracting FCNR (B) Dollar funds - As on Sep 18, 2013

  415. What are the pre-conditions for the FCNR (B) deposits mobilised by a bank for being eligible to be swapped with RBI under the swap window?
  416. What is the nature of swap offered by RBI?
  417. Can the maturing FCNR (B) deposits be renewed and construed as fresh deposits for the purpose of swap?
  418. How will the swap cost of 3.5 per cent be computed?
  419. When can a bank approach RBI for the swap?
  420. How will the tenor of the swap be arrived at?
  421. Is it necessary to pass on the benefit arising out of the swap to the depositor?
  422. In case of premature withdrawal of deposit, is it necessary for the bank to approach RBI for cancellation of the swap?
  423. How would the swap be re-priced once a bank approaches RBI for cancellation of the swap subsequent to premature withdrawal of the underlying FCNR (B) deposits?
  424. Can a bank approach RBI for termination of the swap even if the underlying FCNR (B) deposit(s) has not been prematurely withdrawn?
  425. How will the FCNR (B) deposits mobilised in currencies other than US Dollars be taken into account for the purpose of entering into swap with RBI?
  426. On premature withdrawal, banks will have a US Dollar outflow. Can banks meet these dollar demands using any other available source of foreign currency funding?
  427. Will the banks be required to enter into ISDA agreement with RBI for undertaking swaps?
  428. Can a bank enter into a swap with RBI if the original tenor of the fresh FCNR (B) deposits mobilized is more than three years but at the time of availing of the swap facility with RBI, the residual maturity is less than three years?
  429. The swap with RBI will entail very large risk limit consumption (since it would be an off-market, in-the-money swap for banks). This will impact capital requirements substantially. Are such exposures on RBI exempted from capital adequacy requirements?
  430. Can a bank offer loan abroad to the account holder and can the lending institution mark lien on such deposits?

  431. 21. FEMA - FAQ - As on Feb 01, 2007

  432. Forex Facilities for Residents (Individuals)
  433. Account Opened by Foreign Nationals and Foreign Tourists
  434. Exchange Earner's Foreign Currency (EEFC) Account
  435. Scheme for Authorized Dealers Category I (AD) banks, Authorized Dealers Category-II and Full Fledged Money Changers Appointing Agents/Franchisees for Undertaking Restricted Money Changing
  436. Direct Investment by Residents in Joint Venture (JV)/Wholly Owned Subsidiaries (WOS) abroad
  437. Acquisition and Transfer of Immovable Property in India by a person resident outside India
  438. FAQs on the Asian Clearing Union
  439. Features of various deposit schemes available to Non-Resident Indians (NRIs)
  440. Facilities available to NRIs, PIO for investment in India
  441. Foreign Investments in India
 
 
 

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