Know More before Opening a Foreign Currency Account in Banks

 

Reserve bank of India or the RBI has come out with lots of new range of policies that are beneficial for all categories of people, especially those who are interested in the financial growth of the country as well as self. Banks play a vital role in boosting the financial condition of the country. There are many circulars that are being released in order to create awareness among all the bankers, and in turn all the banks are given permission to publish the circular readings to its constituents as well as customers.

Among all the released circulars, we will talk about the Notification No. FEMA 5 / 2000–RB as of 3rd May 2000. Through this circular the RBI has gained attention of all the authorized dealer (AD) banks to the paragraph 2 of schedule 2. The above mentioned circular is being amended time to time in various sections viz., foreign exchange (deposit) regulations, 2000. Thus, it is advised that you need to read the above circular along with Notification No. FEMA 14 / 2000 – RB dated 3rd May 2000.

Along with the aforesaid section, the foreign exchange management (manner of receipt and payment) regulations, 2000 is also being amended on a timely basis. According to these two circulars and the amendments, the deposit of funds in the foreign currency (non – resident) account (banks) scheme accounts may be accepted.

The currencies that are permissible through these transitions are designated by the Reserve Bank of India on a timely basis. According to the current version of circular, following currencies are permitted for the transactions:

  • US dollar
  • Pound sterling
  • Euro
  • Japanese Yen
  • Australian Dollar
  • Canadian Dollar

There has been a detailed study conducted to understand and review the amenities for people FEMA, 1999. Based on the reports published, it is suggested that FCNR (B) accounts can allowed to be opened in any freely exchangeable currency. This facility has benefited to lots of non – resident people to invest their money and get good returns out…

Read the full article from the Source…

Back to Top