Reserve Bank of India
(Exchange Control Department)
Central Office
Mumbai 400 001
Notification No.FEMA.67/2002-RB
dated August 20, 2002
Foreign Exchange Management (Borrowing
and
Lending in Rupees) (Amendment) Regulations, 2002
In exercise of the powers conferred
by clause (e) of sub-section (3) of Section 6 and sub-section (2) of Section
47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial
modification of its Notification
No.FEMA.4/RB-2000, dated May 3, 2000, Reserve Bank of India makes the following
Regulations to amend the Foreign Exchange Management (Borrowing and Lending
in Rupees) Regulations, 2000, as amended from time to time namely :
Short title and commencement
1. (a) These Regulations
may be called the Foreign Exchange Management (Borrowing and Lending in Rupees)
(Amendment) Regulations, 2002.
(b) They shall come into
force from the date of their publication in the Official Gazette.
Amendment of the Regulations
2. In the Foreign Exchange
Management (Borrowing and Lending in Rupees) Regulations, 2000, after Regulation
8, the following Regulation shall be inserted, namely :
'8A Rupee Loans to NRI/PIO
employees of Indian body corporate
A body corporate registered
or incorporated in India may grant rupee loan to its employees who is a
non-resident Indian or a Person of Indian Origin, subject to the following
conditions, namely :
i. The loan shall be granted only for personal
purposes including purchase of housing property in India;
ii. The loan shall be granted in accordance
with the lender's Staff Welfare Scheme/Staff Housing Loan Scheme and
other terms and conditions applicable to its staff resident in India;
iii. The lender shall ensure that the loan
amount is not used for the purposes specified in sub-clauses (i) to
(iv) of clause (1) and in clause (2) of Regulation 6;
iv. The lender shall credit the loan amount
to the borrower's NRO Account in India or shall ensure credit to such
Account by specific indication on the payment instrument;
v. It shall be a term of the loan agreement
that the repayment of loan shall be made by way of remittance from outside
India or from NRE/NRO/FCNR Account of the borrower; and the lender shall
not accept repayment made from any other source.
K.J.Udeshi
Executive Director
blished in the Official Gazette of Government
of India - Extraordinary - Part-II, Section 3,
Sub-Section (i) dated 08.11.2002 - G.S.R.No.754(E)
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