Regulation 5A - Opening, holding and maintaining a Resident Foreign Currency (Domestic) Account - Foreign Exchange Management (Foreign Currency Accounts By A Person Resident In India) Regulations, 2000

1 5A.Opening, holding and maintaining a Resident Foreign Currency (Domestic) Account (1) 3 A resident Individual may open, hold and maintain with an Authorised Dealer in India a foreign currency account, to be known as Resident Foreign Currency (Domestic) Account, out of foreign exchange acquired in the form of currency notes, bank notes and travellers cheques : (a) while on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India; or (b) from any person not resident in India and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligation; or (c) by way of honorarium or gift while on a visit to any place outside India; or (d) represents the unspent amount of foreign exchange acquired by him from an authorised person for travel abroad. 2 e. as gift from a close relative; Explanation : For the purpose of this clause, close relative'' means relatives as defined in Section 6 of the Companies Act, 1956. 2 (f) by way of earning through export of goods / services, or as royalty, honorarium or by any other lawful means; 2 (g) representing the disinvestment proceeds received by the resident account-holder on conversion of shares held by him to ADRs / DGRs under the Sponsored ADR / GDR Scheme approved by the Foreign Investment Promotion Board of Government of India. 4 (h) by way of earnings received as the proceeds of life insurance policy claims/maturity/surrender values settled in foreign currency from an insurance company in India permitted to undertake life insurance business by the Insurance Regulatory and Development Authority. (2) Debits to the account shall be for payments towards a current account transaction in accordance with the provisions of the Foreign Exchange Management (Current Account Transactions) Rules, 2000 and towards a capital account transaction permissible under the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000. (3) The account shall be maintained in the form of Current Account and shall not bear any interest. (4) There shall be no ceiling on the balances in the account. ******************************* Note : 1. Has been inserted vide Notification No. 074/2002 dated 1/11/2002 2. Has been added vide Notification No. 090/2003 dated 23/5/2003 3. Words, 'A person resident in India' has been substituted by the words 'A resident Individual' vide Notification No. 109/2004 dated 1/1/2004 4. Has been inserted vide Notification No. Supra