RBI allows diplomatic missions to credit visa fees to foreign currency accounts

RBI/2009-10/156 A. P. (DIR Series) Circular No.08 September 14, 2009 To, All Category – I Authorised Dealer Banks Madam / Sir, Foreign Currency Account by diplomatic missions - Credit of Visa Fees Attention of Authorised Dealer Category - I (AD Category – I) banks is invited to clause (a) of sub-regulation 3 of Regulation 4 of the Notification No. FEMA 5/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time, in terms of which proceeds of inward remittances received from outside India through normal banking channels are allowed to be credited to the accounts maintained in foreign currency by diplomatic missions. 2.   In consultation with the Government of India, it has been decided to permit diplomatic missions to credit the visa fees collected in India in Indian rupees by way of transfer from the rupee account to the accounts maintained in foreign currency by the diplomatic missions, in addition to proceeds of inward remittances received from outside India through normal banking channels. 3.  Necessary amendment to the Foreign Exchange Management (Deposit) Regulations, 2000 dated May 3, 2000 has been notified vide Notification No. 193/2009-RB dated June 2, 2009 (G.S.R. No. 442(E) published in the Official Gazette of Government of India dated June 23, 2009) ( copy enclosed ). 4. Accordingly, AD Category –I banks may allow the diplomatic missions to credit the visa fees collected in India in Indian rupees, by way of transfer from the rupee account, to the account maintained in foreign currency by the diplomatic missions. 5.  AD Category - I banks may bring the contents of this circular to the notice of their constituents concerned. 6. 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 is without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge ANNEX [To A.P.(DIR Series) Circular No.08 of 14.09.09] Reserve Bank of India Foreign Exchange Department Central Office Mumbai 400 001 Notification No.FEMA.  193  /2009-RB Date: June 2, 2009 Foreign Exchange management (Deposit) (Amendment) Regulations, 2009 In exercise of the powers conferred by clause (f) of sub section (3) of section 6 and 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 in the Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No.FEMA.5/2000-RB dated May 3, 2000) namely : - 1.Short title and commencement :- (i) These regulations may be called the Foreign Exchange Management (Deposit) (Amendment) Regulations, 2009. (ii) They shall come into force from the date of their publication in the Official Gazette. 2. Amendment of the Regulations: - In the Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No.FEMA.5/2000-RB dated May 3, 2000), Regulation 4, in sub-regulation (3), for clause (a), the following shall be substituted, namely:- “(a) credits to the account shall be only by way of:- (i) proceeds of inward remittances received from outside India through normal banking channels; and (ii) transfer of funds, from the rupee account of the diplomatic mission in India, which are collected in India as visa fees and credited to such account.” (Salim Gangadharan) Chief General Manager-in-Charge Foot Note : The Principal Regulations were published in the Official Gazette vide G.S.R.No.388 (E) dated May 5, 2000 in Part II, Section 3, Sub-Section (i) and subsequently amended vide :- G.S.R.No.262(E) dated April 9, 2002 G.S.R.No.577(E) dated August 19, 2002 G.S.R.No.855(E) dated December 31, 2002 G.S.R.No.494(E) dated August 4, 2004 G.S.R.No.221(E) dated April 7, 2005 G.S.R.No.663(E) dated November 14, 2005 G.S.R.No.28(E) dated January 19, 2006 G.S.R.No.495(E) dated July 23, 2007 G.S.R.No.664(E) dated October 16, 2007 G.S.R.No.714(E) dated November 14, 2007 G.S.R.No.91(E) dated February 15, 2008 Published in the Official Gazette of Government of India – Extraordinary – Part-II, Section 3, Sub-Section (i) dated 23.06.2009 - G.S.R.No. 442 (E)

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/156 · issued 14 Sep 2009. The plain-English explanation above is BankPulse’s own independent summary.

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