Compilation of R-Returns: Reporting under FETERS - FEMA - 50

RBI/2015-16/317 A.P. (DIR Series) Circular No. 50 February 11, 2016 To, All Authorised Dealers in Foreign Exchange Madam / Sir, Compilation of R-Returns: Reporting under FETERS Attention of Authorised Dealer (Category I) banks is invited to A.P.(DIR Series) Circular No.84 dated February 29, 2012 giving guidelines for compilation of R-Returns for reporting under the Foreign Exchange Transactions Electronic Reporting System (FETERS), A.P.(DIR Series) Circular No.101 dated February 4, 2014 on Export of Goods and Services: Export Data Processing and Monitoring System (EDPMS) for facilitating banks to submit export-related information through EDPMS platform and A.P.(DIR Series) Circular No.15 dated July 28, 2014 which discontinued separate reporting of information in ENC (Export Bills Negotiated / sent for collection) for acknowledgement of receipt of export documents and Sch.3 to 6 (realization of export proceeds) under FETERS. Web based data submission by AD banks 2. In order to enhance the security-level in data submission and further improve data quality, the following modifications shall be effected in the guidelines for submission of data under the FETERS from 1st fortnight of April 2016 (i.e., reporting of those transactions which take place from April 1, 2016): The present email-based submission will be replaced by web-portal based data submission. However, there are no changes in periodicity, file-layout, delimiter, consistency checks, and inter-relationship among BOP6.TXT and QE.TXT files as well as their naming convention. Nodal offices of banks have to access the web-portal https://bop.rbi.org.in with the RBI-provided login-name and password, to submit data (Contact and other details are given in the above-mentioned Circular dated February 29, 2012). Banks may download RBI-provided validator template from this portal on their computer and perform off-line check of their FETERS data-file for error, if any, before its submission on the portal. Both Java-based and Excel-based validators are provided: Use of Java-based validator is advised for larger files. This portal also gives relevant master files (e.g., country, currency, AD code, purpose code masters). On uploading validated files, banks will get acknowledgment. They can view the data-files submitted by them during the previous two fortnights, with download facility. They can also revise the purpose codes for transaction submitted earlier, if required, which will be authenticated by RBI in the system. Banks may report (a) addition of AD code for their bank and (b) update AD category, which will be incorporated in the AD-master database by RBI after due authentication. With the discontinuation of ENC.TXT and SCH 3 to 6.TXT files in FETERS, the purpose codes P0105 [Export bills (in respect of goods) sent on collection other than Nepal and Bhutan] and P0107 [Realisation of NPD export bills (full value of bill to be reported) other than Nepal and Bhutan] have become defunct and are, therefore, discontinued. Revision in Form A2 3. Further, in-order to streamline the reporting of the transactions relating to the Liberalised Remittance Scheme (LRS) in FETERS and On-line Return Filing System (ORFS), it has been decided that transactions relating to LRS may be reported under respective FETERS purpose codes (e.g. travel, medical treatment, purchase of immovable property, studies abroad, maintenance of close relatives; etc.) instead of reporting collectively under the purpose code S0023. This would help AD banks in classification of transactions for similar activity under single purpose code. Therefore, the purpose code S0023 would be revised as follows to enable reporting of Opening of foreign currency account abroad with a bank : Purpose Code Description as per the A.P.(DIR Series) Circular No.84 dated February 29, 2012 and in Form A2 Revised Description S0023 Remittances made under Liberalised Remittance Scheme (LRS) for Individuals Opening of foreign currency account abroad with a bank i. For facilitating the existing monthly reporting of LRS transactions under ORFS, AD banks may use the following purpose codes only: Sr. No. Items under LRS Corresponding FETERS purpose codes, if transaction is identified under LRS 1 Opening of foreign currency account abroad with a bank under LRS S0023 2 Purchase of immovable property S0005 3 Investment in equity, debt, JV, WoS, ESOPs, IDRs S0001, S0002, S0003, S0004, S0021, S0022 4 Gift S1302 5 Donations S1303 6 Travel (business, pilgrimage, medical treatment, education, employment, personal) S0301, S0303, S0304, S0305 S0306 7 Maintenance of close relatives S1301 8 Medical Treatment S1108 9 Studies abroad S1107 10 Emigration S1307 11 Others such as loan to NRI close relatives and health insurance S0011, S0603 ii. AD banks should also ensure that the data pertaining to LRS transactions reported by them in FETERS tallies with that reported by them in ORFS. iii. The Form A2 is also being revised (as per Annex ) by introducing a check-box for LRS transactions in the relevant block as follows: Sr. No. Whether under LRS (Yes/No) Purpose Code Description As per the Annex iv. Further, the Application cum Declaration for purchase of foreign exchange under the Liberalised Remittance Scheme of USD 250,000 has been clubbed with Form A2 in order to reduce multiplicity of forms to be filled in by the customers. Online submission of Form A2 by the remitter 4. With a view to facilitating miscellaneous remittances and reducing paperwork associated with payment transactions, it has been decided that Authorised Dealer banks, offering internet banking facilities to their customers may allow online submission of Form A2. Besides, they may also enable uploading/submission of documents, if and as may be necessary, to establish the permissibility of the remittances under the extant rules or regulations framed under the Foreign Exchange Management Act, 1999 (FEMA) . Remittances that do not require any documentation (e.g. certain transactions under the LRS) may be put through on the basis of the Form A2 alone. To start with, remittances on the basis of online submission alone will be available for transactions with an upper limit of USD 25,000 (or its equivalent) for individuals and USD 100,000 (or its equivalent) for corporates. It may be noted that the remittance will be subject to satisfaction of the Authorised Dealer banks as laid down in Section 10 (5) of FEMA. Accordingly, Authorised Dealer banks are advised to frame appropriate guidelines for customer interface personnel to ensure ease of transactions for the customers within the ambit of the statutory/regulatory provisions. It may be further noted that reporting of transactions in FETERS shall continue, as hitherto, by the Authorised Dealer banks. 5. Appropriate changes in technology and/or operating procedure may be carried out by Authorised dealer banks immediately and compliance in this regard furnished to RBI. 6. The changes introduced through this circular may be implemented with immediate effect and in any case not later than April 1, 2016. 7. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents. 8. 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) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (B.P.Kanungo) Principal Chief General Manager