Regulation 6 - Acceptance of deposits by persons other than authorised dealer/ authorised bank - Foreign Exchange Management (Deposit) Regulations, 2016

6. Acceptance of deposits by persons other than authorised dealer/ authorised bank:- 1) A company registered under Companies Act, 2013 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 or a person of Indian origin. The company may, however, renew the deposits which had been accepted on repatriation basis from an NRI or a PIO subject to terms and conditions mentioned in Schedule 6. 2) A company registered under Companies Act, 2013 or a body corporate, a proprietary concern or a firm in India may accept deposits from a non-resident Indian or a person of Indian origin on non-repatriation basis, subject to the terms and conditions mentioned in Schedule 7 . 1 [****] ********* Notes 1. Omitted vide NOTIFICATION No. FEMA 5 (R) 2 /2019-RB dated 16-07-2019 before it was read as 3) An Indian company may accept deposits by issue of Commercial Paper to a non-resident Indian or a person of Indian origin or a foreign portfolio investor registered with the Securities and Exchange Board of India subject to the following conditions, namely: a) the issue is in due compliance with the Non-Banking Companies (Acceptance of Deposits through Commercial Paper) Directions, 1989 issued by the Reserve Bank as also any other law, rule, directions, orders issued by the Government or any other regulatory authority, in regard to acceptance of deposits by issue of Commercial Paper; b) payment for issue of Commercial Paper is received by the issuing company by inward remittance from outside India through banking channels or out of funds held in a deposit account maintained by a Non- Resident Indian or a Person of Indian Origin in accordance with the Regulations made by Reserve Bank in that regard; c) the amount invested in Commercial Paper shall not be eligible for repatriation outside India; and d) the Commercial Paper shall not be transferable.