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Reserve Bank of India
Exchange Control Department
Central Office
Mumbai - 400 001
A.P. (DIR Series) Circular No.17
September 20, 2003
To
All Authorised Dealers in Foreign Exchange
Madam/Sirs,
Remittance of Salary - Relaxation
Attention of Authorised Dealers
is invited to Regulation No.7(8) of the Notification
No.FEMA 10/2000-RB dated May 3, 2000 as amended by the Notification
No.FEMA 34/2001-RB dated January 22, 2001, in terms of which foreign nationals
employed in India are permitted to receive upto 75 per cent of their salary
by credit to their accounts outside India.
2. On a review of the matter,
it has been decided to extend the existing facility of remittance of salary
available to foreign nationals to Indian nationals employed by a foreign company
outside India on deputation to India. Reserve Bank has now issued a Notification
No.FEMA 89/2003-RB dated April 29, 2003. Accordingly, it will
be in order for a national of a foreign state, resident in India being an employee
of a foreign company or a citizen of India employed by a foreign company outside
India and in either cases on deputation to the office/branch/subsidiary/joint
venture in India of such foreign company, to open, hold and maintain a foreign
currency account with a bank outside India and receive the salary payable to
him for services rendered to the office/branch/subsidiary/joint venture in India
of such foreign company, by credit to such account subject to the following
conditions :
- the amount to be credited to such account shall
not exceed 75 per cent of the salary accrued to or received by such person
from the foreign company;
- the remaining salary shall be paid in Rupees
in India; and
- subject to applicable taxes on the entire salary
as accrued in India.
- Authorised Dealers may bring the contents of
this circular to the notice of their constituents concerned.
- The directions contained in this circular have
been issued under Section 10(4) and Section 11(1) of the FEMA 1999 (42 of
1999).
Yours faithfully,
Grace Koshie
Chief General Manager
Reserve Bank Of India
(Exchange Control Department)
Central Office
Mumbai 400 001
Notification No.FEMA.89/2003-RB
dated April 29, 2003
Foreign Exchange
Management (Foreign Currency Account by a
Person Resident in India)(Second Amendment) Regulations, 2003
In exercise of the powers conferred
by clause (b) of Section 9 and clause (e) of sub-section (2) of Section 47 and
in partial modification of its Notification No.FEMA 10/2000-RB dated 3rd
May 2000 the Reserve Bank of India makes the following amendments in the Foreign
Exchange Management (Foreign Currency Account by a Person Resident in India)
Regulations 2000 namely:
1. Short title and commencement
(a) These Regulations
may be called the Foreign Exchange Management (Foreign Currency Account by
a Person Resident in India) (Second Amendment) Regulations, 2003.
(b) They shall come into
force from the date of their publication in the Official Gazette.
2. Amendment of the Regulation
In the Foreign Exchange Management
(Foreign Currency Account by a Person Resident in India) Regulations 2000, in
sub-regulation 8 of Regulation 7, for the words 'A national of a foreign State
resident in India being an employee of a foreign company on deputation', the
words 'A national of a foreign State resident in India being an employee of
a foreign company or a citizen of India employed by a foreign company outside
India and in either case on deputation' shall be substituted.
Sd/-
( K.J. Udeshi )
Executive Director
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