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TMI BlogOpening, holding and maintaining a Foreign Currency Account outside IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... les or regulations made or the directions issued thereunder. (2) A branch outside India of a bank incorporated or constituted in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of carrying on normal banking business outside India, subject to compliance with the directions or guidelines issued from time to time by the Reserve Bank, and the regulatory authority in the country where the branch is located. (B) Account by a company/ firm in the name of its office/ branch/ representative outside India A firm or a company or a body corporate registered or incorporated in India (hereinafter referred to as 'the Indian entity') may open, hold and maintain in the name of its office (trading or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... six months, and the balance held in the account shall be repatriated to India; Provided further that the restriction contained in clause (b) of the first proviso shall not apply in a case where - 1) the remittances to the account maintained under this sub-Regulation are made out of funds held in EEFC account of the Indian entity, or 2) the overseas branch/ office is set up or representative posted by a 100% Export Oriented Unit (EOU) or a unit in Export Processing Zone (EPZ) or in a Hardware Technology Park or in a Software Technology Park, within two years of establishment of the Unit. Explanation: For the purpose of this sub-Regulation, 1) Purchase of acquisition of office equipment and other assets required for normal business o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds after adjusting for forward commitments, provided that the realisation and repatriation requirements as specified in Regulation 9 of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 are also met.] (D) For making Overseas Direct Investment An Indian party may open, hold and maintain Foreign Currency Account abroad for the purpose of making overseas direct investments subject to the following terms and conditions: (a) The Indian party is eligible for making overseas direct investment in terms of Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 as amended from time to time (b) The host country regulations stipulate that the investment into the country is required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reign exchange earnings out of exports/ sales made by the said entity and/ or the receivables, arising out of exports/ sales, of its overseas subsidiary. Provided that the balances in the account shall be repatriated to India within the period prescribed in Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 dated January 12, 2016, as amended from time to time, for realization of export proceeds. 5[Explanation: For the purpose of this sub-regulation a 'startup' will mean an entity recognised as a startup by the Department for Promotion of Industry and Internal Trade pursuant to notification number G.S.R. 127(E) dated February 19, 2019, and as amended from time to time.]] 1[(F)] Other Cases 4[(1) Subject to com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India who has gone out of India to participate in an exhibition/ trade fair outside India may open, hold and maintain a Foreign Currency Account with a bank outside India for crediting the sale proceeds of goods on display in the exhibition/ trade fair: Provided that the balance in the account is repatriated to India through normal banking channels within a period of one month from the date of closure of the exhibition/ trade fair. (6) A person resident in India who has gone abroad for studies may open, hold and maintain a Foreign Currency Account with a bank outside India during his stay outside India. Provided that all credits from India into the account shall be made in accordance with the Act, Rules and Regulations made thereunder. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ression 'company' shall include a 'Limited Liability Partnership' as defined under The Limited Liability Partnership Act, 2008. ************* NOTES:- 1. Renumbered as vide Not. 10(R)/(1)/2016-RB - Dated 1-6-2016 before it was read as, "(E)" 2. Substituted vide Not. 10(R)/(1)/2016-RB - Dated 1-6-2016 before it was read as, " (3) Life Insurance Corporation of India or General Insurance Corporation of India and its subsidiaries may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of meeting the expenditure incidental to the insurance business carried on by them and for that purpose, credit to such account the insurance premia received by them outside India. " 3. Inserted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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