Foreign Exchange Management (Foreign Currency Account by a Person Resident in India) (Amendment) Regulations, 2007 - 154-RB-2007 - Foreign Exchange Management

Foreign Exchange Management (Foreign Currency Account by a Person Resident in India ) (Amendment) Regulations, 2007 Notification No. 154-RB-2007 dated 7 June 2007 [G.S.R.455(E)] In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) the Reserve Bank of India makes the following amendments to Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations 2000 (Notification No. FEMA 10/2000-RB dated 3rd May, 2000), as amended from time to time, namely: 1. Short Title and Commencement:- (i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Amendment) Regulations, 2007. (ii) They shall be deemed to have come into force from the date(s) specified hereunder. 2. Amendment of the Regulations:- In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India), Regulations, 2000 (hereinafter called the principal regulations'), (1) in the Schedule, for paragraph (1), the following paragraph shall be substituted, namely: "(1) A person resident in India may credit to the EEFC Account with an Authorised Dealer in India 100 per cent of the foreign exchange earnings as specified in sub-paragraph (1A)." This shall be deemed to have come into force with effect from 30th November, 2006. (2) in regulation 7, in sub-regulation 4A the proviso, in clause (b) (a) in sub-clause (i) for the figure "2" the figure "10" shall be substituted. (b) in sub-clause (ii) for the figure "1" the figure "5" shall be substituted. This shall be deemed to have come into force with effect from 21st April, 2006. (3) in regulation 7, in sub-regulation 4A, in the proviso, in clause (b), sub-clause (i) and sub-clause (ii)— shall be substituted by the following, namely— "(i) 15 per cent of the average annual sales income or turnover of the Indian entity during the last two financial years or up to 25 per cent of the net worth, whichever is higher, where the remittances are made to meet initial expenses of the branch or office or representative. and (ii) 10 per cent of such average annual sales/income or turnover during the last financial years where the remittances are made to meet recurring expenses of the branch or office or representative;" This shall be deemed to have come into force with effect from 4th December, 2006. Sd/- Salim Gangadharan Chief General Manager F.No. 1/23/EM/2000-Vol.IV Footnote:- (i) It is clarified that no person will be adversely affected as a result of retrospective effect being given to these Regulations. (ii) The Principal Regulations were published in the Official Gazette vide No. G.S.R. 393(E) dated May 5, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide Nos.- G.S.R. 675(E) dated August 25, 2000; G.S.R. 89(E) dated February 12, 2001; G.S.R. 103(E) dated February 19, 2001; G.S.R. 200(E) dated March 21, 2001; G.S.R. 5(E) dated January 2, 2002; G.S.R. 261(E) dated April 9, 2002; G.S.R. 465(E) dated July 2, 2002; G.S.R. 474(E) dated July 8, 2002; G.S.R. 755(E) dated November 8, 2002; G.S.R. 756(E) dated November 8, 2002; G.S.R. 224(E) dated March 18, 2003; G.S.R. 398(E) dated May 14, 2003; G.S.R. 452(E) dated June 3, 2003; G.S.R. 453(E) dated June 4, 2003; G.S.R. 11(E) dated January 7, 2004; G.S.R. 13(E) dated January 7, 2004; and G.S.R. 209(E) dated March 23, 2004.