PART F - OTHER FOREIGN CURRENCY ACCOUNTS |
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Escrow Accounts |
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14F.1 |
Under a Counter trade proposal involving adjustment of value of goods imported into India against |
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value of exports from India in terms of an arrangement voluntarily entered into between the Indian party and the overseas party, there is need for an Escrow Account to be opened with a bank in India. Proposals for opening such accounts designated in a foreign currency will be considered by Reserve Bank. Application for permission for opening such an account in the name of the overseas party should be made by the overseas exporter/organisation through the authorised dealer with whom the account is proposed to be opened to the concerned office of Reserve Bank (See paragraph 6A.13). |
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Foreign Currency Accounts by Exporters |
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Foreign Currency Accounts by Airline/Shipping Companies |
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14F.3 |
Authorised dealers may open foreign currency accounts in the names of airline/shipping companies |
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or their agents in India for crediting freight collections from local exporters/importers (cf. paragraph 8C.4). Withdrawal of funds from such accounts may be permitted for meeting local expenses of the concerned airline/shipping company, payment of taxes, etc. or for making remittances abroad towards surplus passage/ freight collections, operating expenses, etc. to the extent permitted by Reserve Bank (cf. Part B of Chapter 8). |
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Foreign Currency Accounts of Overseas Companies executing Projects in India |
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14F.4 |
Overseas companies executing projects in India will be permitted, on application, to open foreign |
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currency accounts with authorised dealers in India for meeting local expenses in connection with the projects in India. Applications for the purpose should be submitted to Reserve Bank, through an authorised dealer, with full details and copies of the approvals obtained from Government of India/Reserve Bank for the concerned project. |
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Foreign Currency Accounts of Overseas Buyers |
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14F.5 |
Reserve Bank may consider applications from overseas buyers for opening foreign currency |
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accounts with authorised dealers in India provided they are funded by remittances in any permitted currency from abroad for making payments to Indian exporters. Authorised dealers should refer such requests to Reserve Bank with full particulars viz., name and address of the overseas party, sources of credits and the purpose of opening the account, etc. |
Foreign Currency Accounts of Foreign Embassies/Missions/Diplomats
14F.6 Authorised dealers may open foreign currency accounts in India in the names of Foreign Embassies/Missions/ Diplomats without the approval of Reserve Bank subject to the following conditions:
- The accounts should be funded by inward remittance in convertible currencies.
- Funds from such accounts can be utilised for payments for import of goods, purchases from Bonded Stores, payment of passage fare, etc.
- Funds held in these accounts, if converted in rupees cannot be reconverted into foreign currency for credit to the accounts.
- The balances in the account may be repatriated/transferred abroad without the approval of Government of India/Reserve Bank.
- While the accounts of Diplomatic Missions may be maintained in the form of Current/Fixed Deposit accounts, Foreign Diplomats may maintain Current/Savings Bank/Fixed Deposit accounts subject to usual terms and conditions of operating these accounts.
- Rate of interest to be paid on Savings/Term Deposit accounts may be determined by the banks as in the case of EEFC/RFC accounts.
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