Western India Regional Council of
The Institute of Chartered Accountants Of India

Law Update Details

 
January 2017 CA. Manoj Shah, CA. Sudha G. Bhushan & CA. Mitesh Majithia
 
Exchange facility to foreign citizensA.P. (DIR Series) Circular No. 20 dated November 25, 2016

A.P. (DIR Series) Circular No. 22 dated December 16, 2016

RBI had vide A.P. (DIR Series) Circular No. 16 dated November 9, 2016 given certain exemptions to foreign tourists visiting India for use of banknotes in the denominations of ` 500 and ` 1,000 until November 11, 2016.

In supersession of aforesaid instructions, RBI has vide circular dated November 25, 2016 allowed foreign citizens (i.e., foreign passport holders) to exchange foreign exchange for Indian currency notes up to a limit of ` 5,000/- per week till December 15, 2016 subject to the tenderer submitting a self-declaration that this facility has not been availed of during the week. This timeline has further been extended till December 31, 2016 vide circular dated December 16, 2016.

The authorized person is required to keep the passport details and the above declaration on record. The authorized person may also ensure that the total value of such exchange to Indian currency notes does not exceed ` 5,000/- during the week.

Amendments to Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000

Notification No. FEMA.372/2016-RB dated October 27, 2016

Notification No. FEMA.373/2016-RB dated October 24, 2016

Notification No. FEMA.379/2016-RB dated November 4, 2016

Notification No. FEMA.381/2016-RB dated December 7, 2016

The RBI has issued following regulations to amend the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000 to give effect to various amendments announced by the Government of India from time-to-time:

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Tenth Amendment) Regulations, 2016;

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Eleventh Amendment) Regulations, 2016;

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Sixteenth Amendment) Regulations, 2016;

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Eighteenth Amendment) Regulations, 2016.

 

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