Indian resident can now open resident foreign currency A/C
By Our Banking Bureau | 10 Jun 2003
Mumbai:
A person resident in India can now open, hold and maintain
a Resident Foreign Currency (Domestic) Account, with an
authorised dealer in India, out of the foreign exchange
represented by the disinvestment proceeds on conversion
of shares to American Depository Receipts (ADRs)/Global
Depository Receipts (GDRs) under the Sponsored ADR/GDR
scheme.
Sources say the Reserve Bank of India (RBI) has, through its latest amendments to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, broad-based the scope of transactions on which a resident person can open a Resident Foreign Currency (Domestic) Account.
The central bank has also permitted persons resident in India to open such type of accounts out of earnings through export of goods/services or as royalty, honorarium or by any other lawful means.