RBI/2004/ 95 A.P.(DIR Series) Circular No. 77 Dated 13/3/2004

Attention of Authorised Dealers (ADs) is invited to A.P.(DIR Series) Circular No.76 dated February 3, 2003, in terms of which they are required to submit R-Return (NOSTRO) and R-Return (VOSTRO) in hard copy together with transaction details in (FET-ERS - Version 5.0) in floppy.

2. The R-Return formats have been updated and enclosed as Annexures I (NOSTRO) and IA (VOSTRO). Authorised Dealers may please note the changes involving the deletion of Items Nos. I-H & II-H - Notional sale & Notional purchase and Item No. V - Aggregate Balance in R-Return (NOSTRO). They may also note that on crystallisation/cancellation of Export Bills Purchased/Negotiated/Discounted, the transaction has to be included under Item IC (i)/(ii). The list of revised purpose codes for purchase, sale transactions and also a list of purpose codes to be used for filling up the cover page of R-Return are enclosed as Annexure II, Annexure III & Annexure IV.

3. It has also been decided to simplify the procedures and documentation formalities in respect of non-import remittances. Accordingly, in consultation with FEDAI, the A-2 form has been modified to incorporate the application form and the declaration in terms of Section 10(5) of FEMA, 1999 and the specimen form is enclosed as Annexure V. The customer will be required to submit only this form in respect of permissible transactions pertaining to individuals up to a limit of USD 5000 as per our AP DIR circular No 55 dated 23 Dec 2003. For undertaking transactions under the Liberalised Remittance Scheme of USD 25000 for resident individuals, ADs may be guided by the instructions conveyed in our AP DIR No 64 dated February 4, 2004. As regards other transactions, apart from Form A2 as at Annexure V, the AD may call for additional information and documents as may be required. In respect of regular corporate customers, the bank may like to obtain one-time declaration under FEMA as per the proforma given in Annexure VI. The objective behind these steps is to extend hassle-free service to all customers.

4. Authorised Dealers are required to submit R-Return (NOSTRO) and R-Return (VOSTRO) as per the updated formats in hard copy along with FET-ERS floppy on fortnightly basis with effect from April 1, 2004.

5. The officials of the Authorised Dealers have been imparted training by the Reserve Bank on the new FET-ERS (Version 6.1) package, which has been revised comprehensively incorporating new purpose codes for various foreign exchange transactions. The package containing the new version will be made available / distributed to all ADs by the Bank shortly. Authorised Dealers may please arrange for training the officials of the remaining branches so that the foreign exchange transactions may be reported with new purpose codes through the revised FET-ERS (Version 6.1) from April 1, 2004.

6. 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).

Yours faithfully, 

Grace Koshie 

Chief General Manager

Annexure I

(CURRENCY NAME) (SWIFT Currency Code)                    

A. Sales to Public against Imports into India

     (i) Below equivalent of Rs. 5 lakh            ___________________

     (ii) Equivalent of Rs. 5 lakh and above     ___________________

               Total of IA (i) and IA (ii)             _________________

B. Sales to Public against Imports into other countries
___________________
          (i.e. Intermediary Trade)

C. Sales to Public for purposes other than Imports

     (i) Below equivalent of Rs. 5 lakh            ___________________

     (ii) Equivalent of Rs. 5 lakh and above     ___________________

               Total of IC (i) and IC (ii)             ___________________

D. Sales to other Authorised Dealers in India
____________________
Total Outflows (Total of IA, IB, IC and ID) ___________________
  ____________________________________________________________________________________________
(For ‘A’ Category Branches only)
*
* E. Sales to Reserve Bank of India
___________________

*
* F. Sales to overseas banks and branches
___________________
*
* G. Aggregate sales at Branches (Reporting directly to Reserve Bank)
*     by adjustment through Head Office/Link Office
__________________
*____________________________________________________________________________________



Total of I A to I G     ___________________       

A. Purchases from Public against exports


(i) Against GR/PP/SOFTEX Forms/SDF of which

(a) Bills negotiated under L/C and
     bills purchased & discounted _________________

(b) Bills for collection realised     _________________


(ii) Advance receipts which will be covered
     later by GR/PP/SOFTEX Forms/SDF _________________

Total of II A(i)(a), II A(i)(b) & II A(ii) __________________


B. Purchases from Public against third country exports (i.e.
     intermediary trade not covered by GR/PP/SOFTEX Forms/SDF )
_________________

C. Purchases from Public other than against exports

(i) Below equivalent of Rs.5 lakh         __________________

(ii) Equivalent of Rs. 5 lakh and above __________________

Total of II C (i) and II C (ii)            __________________

D. Purchases from other Authorised Dealers in India
__________________

Total Inflows (Total of IIA, IIB, IIC and IID ) __________________

_______________________________________________________________________________

(For ‘A’ Category Branches only)
*
* E. Purchases from Reserve Bank of India
__________________

*
* F. Purchases from overseas banks and branches
__________________

*
* G. Aggregate purchases at branches (Reporting directly to
*     Reserve Bank) by adjustment through Head Office/Link Office
__________________

____________________________________________________________________________________



Total of IIA to IIG     _______________          

Items III C to III H and IV C to IV H on the following page are for ‘A’ category branches only.

Balances against various accounts are to be shown as per respective mirror accounts maintained locally.

(a) the figures reported in the above Return are true and correct;

(b) all the transactions effected by us and by our branches not submitting independent Returns during the reporting period to which this Return relates have been reported in this Return;

(c) no remittance forms and GR/PP/SOFTEX forms/SDF pertaining to any of the previous reporting periods or the current reporting period are outstanding with us;

(d) all the Returns pertaining to the earlier periods have been submitted to the Reserve Bank and

(e) the transactions of the offices/branches which are independently submitting Returns and adjusting through Head Office/Link Office account with us have been incorporated as branch sales/purchases in our Return.

#

(Signature)

Designation

Annexure IA

(Currency Name) (SWIFT Currency Code)

Return of operations of VOSTRO ACCOUNTS for the period ended .
(DD-MM-YYYY in Numerals)
(To be submitted, as at the close of business on the 15th and the last day of each month)

Name and address__________________________________ A.D.Code No. _______________________
of the Authorised __________________________________ Licence No. ________________________
Dealer  ___________________________________________ Serial No. of the Return_______________

# Signature_________________________________
Name and Designation of Authorised Official
Name of the AD & Branch

[ # This certificate must invariably be signed by the official holding charge
of the branch o r by a person of status not lower than Scale IV Officer]

Annexure II

Annexure III

Annexure-IV

Annexure - V

a. Name ____________________________
b. Address ____________________________________________
c. Account No. _____________________

1. Amount (Specify currency) ___________________
2. Purpose __________________________________

* a) Issue a draft : Beneficiary's Name________________________
                           Address ________________________________
* b) Effect the foreign exchange remittance directly -


1. Beneficiary's Name _________________________________
2. Name and address of the Bank _______________________
3. Account No. ____________________


*c) Issue travellers cheques for _____________________________
*d) Issue foreign currency notes for _________________________
(Strike out whichever is not applicable)

Signature

Signature                    
Name _____________

Annexure -VI

____________________________
Signature of the Applicant
for Foreign Exchange