Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (First Amendment) Regulations, 2004 - FEMA - 006

Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (First Amendment) Regulations, 2004 RBI/2004-05/59 A.P.(DIR Series) Circular No.6 July 20, 2004 To All Authorised Dealers in Foreign Exchange Madam/Sirs, Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India ) (First Amendment) Regulations, 2004 Attention of Authorised Dealers is invited to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 notified vide Notification No.FEMA.10/2000-RB dated May 3, 2000. In terms of Regulations 5 and 5A of the Notification ibid, eligible entities in India may open, hold and maintain Resident Foreign Currency (RFC) Account and Resident Foreign Currency (Domestic) [RFC(D)] Account with an authorised dealer out of foreign exchange received by them in respect of transactions specified therein. 2. On a review, it has been decided that the foreign exchange received by a resident individual by way of 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 may be credited to RFC Account or RFC (Domestic) Account of the beneficiary as the case may be. 3. The requisite amendments to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 have been issued by Reserve Bank vide Notification No.FEMA.109/2004-RB dated January 1, 2004, a copy of which is enclosed. 4. Authorised Dealers may bring the contents of this circular to the notice of their constituents/customers concerned. 5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, F.R.Joseph Chief General Manager