What changed
Previously, only inward remittances from outside India could be credited to foreign currency accounts of diplomatic missions. Now, visa fees collected in India in rupees can also be transferred from the mission's rupee account to its foreign currency account.
What it means for you
This simplifies forex management for diplomatic missions by allowing them to convert rupee visa fee collections into foreign currency without separate remittances. Banks must update their procedures to permit such transfers, ensuring compliance with FEMA regulations.
What you must do
- Update internal guidelines to allow transfer of visa fee collections from rupee accounts to foreign currency accounts of diplomatic missions.
- Train staff on the new provision under FEMA (Deposit) Amendment Regulations, 2009.
- Inform diplomatic mission clients about this facility and ensure proper documentation.
- Monitor transactions to ensure only visa fees are credited via this route.
Who it affects
AD Category-I banks, Diplomatic missions in India
Can diplomatic missions credit any rupee receipts to their foreign currency accounts?
No, only visa fees collected in India and credited to their rupee account can be transferred to their foreign currency account, as per the amendment.
What is the effective date of this change?
The amendment was notified on June 2, 2009, and came into force from the date of publication in the Official Gazette on June 23, 2009.