AP(DIR Series)Circular No. 55, dated 26-11-2002
Foreign Currency Loans in India
AP (DIR Series) Circular No.24 dated September 25,2002
in terms of which they
are permitted to grant foreign currency loans in India against the security of
funds held in FCNR(B) deposit accounts to the account holders only, subject to
the guidelines given in the Annexure thereto.
Yours faithfully,
2. It is clarified that the prohibitions placed on grant of rupee loans against
NRE/FCNR deposits for purpose of relending or carrying on agricultural/
plantation activities or for investment in real estate business shall also be
applicable, to foreign currency loans granted in terms of the above circular.
3. Authorised Dealers may bring the contents of this circular to the notice of
their constituents concerned.
4. The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act,1999(42 of 1999).
Grace Koshie
Chief General Manager