y an Authorised Dealer with its branch, head office or correspondent outside India, and a deposit made by a branch or correspondent outside India of an Authorised Dealer, and held in its books in India, will be governed by the directions issued by the Reserve Bank in this regard.
12.2 A shipping or airline company incorporated outside India, can open, hold and maintain a Foreign Currency Account with an authorized dealer for meeting the local expenses in India of such airline or shipping company. The credits permitted to such accounts are only freight or passage fare collections in India or by inward remittances through banking channels from its office outside India.
4312.3 An Authorised Dealer may allow unincorporated joint ventures (UJV) of foreign companies/ entities, with Indian entities, executing a contract in India, to open and maintain non-interest bearing foreign currency account and an SNRR account as specified in Schedule 4 of the Deposit Regulations for the purpose of undertaking transactions in the ordinary course of its business. The debits and credits in these accounts should be incidental to the business requirement of the UJV. The tenure of the account should be concurrent to the tenure of the contract/ period of operation of the UJV and all operations in the account shall be in accordance with the provisions of the Act or the rules or regulations made or the directions issued thereunder. Opening of such accounts by companies/ entities of Pakistan/ Bangladesh ownership/ nationality would require the prior approval of the Reserve Bank.
4412.4 An Authorised Dealer in India may allow a Foreign Portfolio Investor and a Foreign Venture Capital Investor, both registered with the Securities and Exchange Board of India (SEBI) under the relevant SEBI Regulations, to open and maintain a non-interest bearing foreign currency account for the purpose of making investment in accordance 45with Foreign Exchange Management (Non-debt Instruments) Rules, 2019 dated October 17, 2019, and Foreign Exchange Management (Debt Instruments) Regulations, 2019 dated October 17, 2019, as applicable and as amended from time to time.
13. Nomination
Authorised dealers may provide nomination facility in respect of the deposits/ accounts in these regulations maintained by individual account holders.
14. Responsibility of authorised dealers maintaining foreign currency accounts:-
An authorised dealer maintaining accounts under this Master Direction is required to:
a) comply with the directions issued by the Reserve Bank from time to time; and
b) submit periodic return or statement, if any, as may be stipulated by the Reserve Bank.
List of notifications/ circulars which have been consolidated in this Master Direction
| Sl No | Notification/ AP (DIR Series) Circular | Date |
| 1 | 46Notification No. FEMA 10(R)/2015-RB | January 21, 2016 |
| 2 | 47Notification No. FEMA 5(R)/2015-RB | April 1, 2016 |
| 3 | 48Notification No. FEMA 10(R)/(1)/2016-RB | June 1, 2016 |
| 3 | A.P (DIR Series) Circular No. 44 [(1)/10(R)] | February 4, 2016 |
| 4 | A.P (DIR Series) Circular No. 59 | April 13, 2016 |
| 6 | A.P (DIR Series) Circular No. 67/2015-16/ [(1)/5(R)] | May 5, 2016 |
| 7 | A.P (DIR Series) Circular No. 77[(2)/10(R)] | June 23, 2016 |
| 8 | 49Notification No. FEMA 5 (R)(1)/2018-RB | November 9, 2018 |
| 9 | AP (DIR Series) Circular No.28 | March 28, 2019 |
| 10 | 50Notification No. FEMA 10(R)(2)/2019-RB | February 27, 2019 |
| 11 | AP (DIR Series) Circular No.29 | April 11, 2019 |
| 12 | Notification No. FEMA 5(R)(2)/2019-RB | July 16, 2019 |
| 13 | AP (DIR Series) Circular No.06 | August 16, 2019 |
| 14 | 51Notification No.FEMA 5(R)(3)/2019-RB | November 13, 2019 |
| 15 | AP(DIR Series) Circular No.09 | November 22, 2019 |
1 FEM (Foreign Currency Accounts by a person Resident in India) Regulations, 2000 was repealed and replaced by FEM (Foreign Currency Accounts by a person Resident in India) Regulations, 2015 with effect from January 21, 2016.
2 FEM (Deposit) Regulations, 2000 was repealed and replaced by FEM (Deposit) Regulations, 2016 with effect from April 1, 2016.
3 Updated up to April 12, 2019 (cf. AP (DIR Series) circular No 29 dated April 11, 2019). The Original Master Direction No. 14/2015-16 was issued on January 1, 2016.
4 FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000 was repealed and replaced by FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 with effect from January 21, 2016.
5 Inserted by FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 with effect from January 21, 2016. Prior to insertion it read as “section 6 of the Companies Act, 1956”.
6Inserted by Amendment Notification No. FEMA 10(R)/(1)/2016-RB notified vide G.S.R.No.570(E) dated June 1, 2016 intimated vide AP (Dir Series) Circular No. 77[(2)/10(R)] dated June 23, 2016.
7 Inserted by FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 with effect from January 21, 2016. Prior to insertion it read as “ADR/GDR Scheme approved by the Government of India.”
8Inserted by Amendment Notification No. FEMA 10(R)/(1)/2016-RB notified vide G.S.R.No.570(E) dated June 1, 2016 intimated vide AP (Dir Series) Circular No. 77[(2)/10(R)] dated June 23, 2016.
9 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016. Prior to this, PIOs were covered within the definition of NRIs.
10 Inserted by FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 with effect from January 21, 2016. Prior to insertion it read as “ADR/GDR Scheme approved by the Government of India.”
11 Inserted by FEM (Foreign Currency Accounts by a Person resident in India) Regulations, 2015 with effect from January 21, 2016.
12 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 has been superseded by Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 issued by Government on October 17, 2019.
13 Inserted vide Notification No. FEMA 10(R)(2) dated February 27, 2019 and AP (DIR Series) Circular No. 29 dated April 11, 2019.
14Inserted by Amendment Notification No. FEMA 10(R)/(1)/2016-RB notified vide G.S.R.No.570(E) dated June 1, 2016 intimated vide AP (Dir Series) Circular No. 77[(2)/10(R)] dated June 23, 2016. Prior to insertion it read as “Life Insurance Corporation (LIC) of India or General Insurance Corporation (GIC) of India and its subsidiaries.”
15 Inserted by FEM (Foreign Currency Accounts by a person Resident in India) Regulations, 2015 with effect from January 21, 2016. Prior to this it read as “the balance in the account should be repatriated to India on return of the account holder to India.”
16 Inserted by AP (DIR) Series Circular 44 dated February 4, 2016
17 Inserted by Amendment Notification No. FEMA 10(R)/(1)/2016-RB notified vide G.S.R.No.570(E) dated June 1, 2016 intimated vide AP (Dir Series) Circular No. 77[(2)/10(R)] dated June 23, 2016.
18 Inserted by FEM (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 with effect from January 21, 2016.
19 FEM (Deposit) Regulations, 2000 was repealed and replaced by FEM (Deposit) Regulations, 2016 with effect from April 1, 2016.
20 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016. Prior to insertion it read as, “A ‘Non-resident Indian’ (NRI) is a person resident outside India who is a citizen of India or is a ‘Person of Indian Origin’.”
21 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016. Prior to insertion it read as “Person of Indian Origin’ (PIO) means a citizen of any country other than Bangladesh or Pakistan who had (a) at any time held Indian passport or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955; or (c) the person is a spouse of an Indian citizen or a person referred to in (a) or (b).”
22 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016. Prior to insertion it read as, “section 6 of the Companies Act, 1956.”
23 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016.
24 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016. Prior to insertion it read as, “An authorised dealer or its overseas branch/ correspondent can grant loans against security of the funds to the account holder/ a third party in or outside India, respectively without any limits subject to the usual margin requirements. The facility for premature withdrawal of the deposits shall not be available where loans against such deposits are availed of. The term “loan” shall include all types of fund based/ non-fund based facilities.”
25 Modified by insertion of (a) and (b), vide Foreign Exchange Management (Deposit) (Amendment) Regulations, 2018 Notification No. FEMA 5 (R)(1)/2018-RB dated November 09, 2018 and AP (DIR Series) Circular No. 28 dated March 28, 2019. Prior to insertion it read as “Opening of accounts by individuals/ entities of Pakistan nationality/ ownership and entities of Bangladesh ownership requires prior approval of the Reserve Bank. However, individuals of Bangladesh nationality may be allowed to open these accounts subject to the individual/ s holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned.”
26 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016.
27 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016.
28 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016.
29 FEM (Remittance of Assets) Regulations, 2000 repealed and replaced by FEM (Remittance of Assets) Regulations, 2016 vide FEMA Notification No. 13(R)/2016-RB dated April 1, 2016.
30 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016. Prior to insertion it read as: “7. Special Non-Resident Rupee Account - SNRR account.
7.1 A Registered Foreign Portfolio Investor (RFPI) may open an SNRR account with an AD in India for routing the receipt and payment relating to purchase and sale of securities under the Portfolio investment scheme in accordance with Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000, dated May 3, 2000, as amended from time to time. SNRR account shall be a non-interest bearing current account.
7.2 The permitted credits to the account are: (a) Inward remittances; (b) Sale proceeds (net of taxes) of securities in India; (c) Transfers from the foreign currency account of the RFPI.
7.3 The permitted debits are: (a) Purchase of securities in India; (b) Transfers to the foreign currency account of the RFPI”
31 Inserted vide AP (Dir) Circular no. 9 dated November 22, 2019 and vide Notification No. FEMA 5(R)/3/2019-RB dated November 13, 2019.
32 Modified vide AP (Dir) Circular no. 9 dated November 22, 2019 and vide Notification No.FEMA 5(R)/3/2019-RB dated November 13, 2019. Prior to modification, it read as, “The SNRR account shall carry the nomenclature of the specific business for which it is opened and shall not earn any interest.”
33 Modified vide Foreign Exchange Management (Deposit) (Amendment) Regulations, 2018 Notification No.FEMA 5 (R)(1)/2018-RB dated November 09, 2018 and AP (DIR Series) Circular No.28 dated March 28, 2019. Prior to modification it read as, “The tenure of the SNRR account should be concurrent to the tenure of the contract/ period of operation/ the business of the account holder and in no case should exceed seven years. No operations are permissible in the account after seven years from the date of opening of the account.”
34Modified vide AP (Dir) Circular no. 9 dated November 22, 2019 and vide Notification No. FEMA 5(R)/3/2019-RB dated November 13, 2019. Prior to modification, it read as, “purpose of making investment in India in accordance with Foreign Exchange Management (Transfer or Issue of Security By a Person Resident Outside India) Regulations, 2017, as amended from time to time.”
35Modified vide AP (DIR Series) Circular No. 9 dated November 22, 2019 read with Notification No. FEMA 5(R)/3/2019-RB dated November 13, 2019. Prior to modification, it read as, “The amount due/ payable to non-resident nominee from the account of a deceased account holder, will be credited to NRO account of the nominee with an authorised dealer/ authorised bank in India.”
36Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016. Prior to this, the provisions were stipulated in Schedule 8.
37FEM (Transfer or Issue of Security by a person resident Outside India) Regulations, 2017 has been superseded by Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 issued by Government on October 17, 2019
38 FEM (Deposit) Regulations, 2000 repealed and replaced by FEM (Deposit) Regulations, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016.
39 FEM (Deposit) Regulations, 2000 repealed and replaced by FEM (Deposit) Regulations, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016.
40Deleted vide Notification No. FEMA 5(R)(2)/2019-RB dated July 16, 2019 read with AP (DIR Series) Circular No. 06 dated August 16, 2019. Prior to deletion, it read as, “Indian companies can accept deposits from NRIs or PIOs by issue of a commercial paper subject to terms and conditions specified in sub-Regulation (3) of Regulation 6 of Notification No FEMA 5(R)/ 2016-RB dated April 1, 2016.”
41Inserted vide AP (DIR Series) Circular No. 59 dated April 13, 2016. Accordingly, existing paras 11, 12 and 13 re-numbered as 12, 13 and 14, respectively.
42 Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016.
43 Inserted by Inserted by AP (DIR Series) circular No 67/2015-16/ [(1)/5(R)] dated May 5, 2016 vide FEMA Notification No. 5(R)/2016-RB dated April 1, 2016.
44 Inserted vide Notification No. FEMA 5(R)(1)/2018-RB dated November 09, 2018 and AP (DIR Series) Circular No. 28 dated March 28, 2019.
45 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 has been superseded by Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 and Foreign Exchange Management (Debt Instruments) Regulations, 2019, issued on October 17, 2019.
46 Issued in the Gazette of India vide G.S.R.96(E) dated January 21, 2016
47 Issued in the Gazette of India vide G.S.R.389(E) dated April 1, 2016
48Issued in the Gazette of India vide G.S.R.570(E) dated June 1, 2016
49 Issued in the Gazette of India vide G.S.R.1093(E) dated November 9, 2018
50Issued in Gazette of India vide G.S.R. 160(E) dated February 27, 2019
51 Issued in Gazette of India vide S.O.3732(E) dated October 17, 2019
