In exercise of
the powers conferred by clause (b) of section 9 and clause (e) of
sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42
of 1999), Reserve Bank of India makes the following amendment to the Foreign
Exchange Management (Foreign Currency Accounts by a Person Resident in India)
Regulations, 2000, Notification No. FEMA 10/2000-RB dated 3rd May, 2000 as
amended from time to time, namely :—
1. Short title and
commencement.—
(i) These Regulations may be called the
Foreign Exchange Management (Foreign Currency Accounts by a person resident in
India (Amendment) Regulations, 2008.
(ii) They shall be deemed to have come into
force with effect from April 30,2007. @
2. Amendment of the
Regulations.—
In the Foreign
Exchange Management (Foreign Currency Accounts by a person resident in India)
Regulations, 2000, regulation 6 shall be substituted by the following, namely
:—
“6.
Opening, holding and maintaining a Foreign Currency Account in India in certain
other cases :
(1) A shipping or airline company
incorporated outside India or its agent in India, may open, hold and maintain a
Foreign Currency Account with an authorized dealer in India for meeting the
local expenses in India of such airline or shipping company:
Provided
that the credits to such accounts are only by way of freight or passage fare
collections in India or by inward remittances through normal banking channels
from its office outside India and, in the case of agent, from his principal
outside India.
(2) An authorized dealer in India may,
subject to the directions as may be issued by the Reserve Bank, allow ship-manning/crew
managing agencies in India to open and maintain non-interest bearing foreign
currency accounts in India for the purpose of undertaking transactions in the
ordinary course of their business.”
[F.
No. l/23/EM/2000-Vol.-IV]