Foreign Exchange Management Act (FEMA), 1999 – Current Account Transactions – Remittance of Hiring Charges of Transponders – Procedural Changes - FEMA - 020

Foreign Exchange Management Act (FEMA), 1999 - Current Account Transactions - Remittance of Hiring Charges of Transponders - Procedural Changes RBI/2004-05/234 A.P.(DIR Series) Circular No.20 October 25, 2004 To All Banks Authorised to Deal in Foreign Exchange Madam/ Sirs, Foreign Exchange Management Act (FEMA), 1999 - Current Account Transactions - Remittance of Hiring Charges of Transponders - Procedural Changes Attention of Authorised Dealer (AD) banks is invited to item 2 (viii) of A.P.(DIR Series) Circular No.76 dated February 24, 2004 in terms of which, proposals for remittance of hiring charges of transponders by TV Channels and Internet Service Providers would require prior approval of the Ministry of Information Broadcasting. 2. On a review, it has been decided by the Government that applications for remittance of hiring charges of transponders by TV Channels and Internet Service Providers will require the approval of Ministry of Information and Broadcasting and Ministry of Communication and Information Technology, respectively. 3. Accordingly, Authorised Dealer banks may allow the remittances towards hiring of transponders by TV Channels and Internet Service Providers, after obtaining the approval of the Ministries concerned without reference to the Reserve Bank (copy of the relevant Notification enclosed). Accordingly, item No. 6 of Schedule II to the Foreign Exchange Management (Current Account Transactions) Rules, 2000 may please be amended to read as under: Purpose of remittance Ministry/Dept. of Govt. of India whose approval is required 6. Remittance of hiring charges of transponders by: (a) TV Channels (b) Internet service providers Ministry of Information and Broadcasting Ministry of Communication and Information Technology 4. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents and customers. 5. The direction contained in this circular has been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, Grace Koshie Chief General Manager