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An authorised dealer in India may allow a person resident outside India to open an interest-bearing account in Indian Rupees or foreign currency. The person uses this account to post and collect margin in India for a permitted derivative contract. The contract follows the Foreign Exchange Management Margin for Derivative Contracts Regulations 2020. The operation of the account remains subject to Reserve Bank directions.
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RESERVE BANK OF INDIA (FOREIGN EXCHANGE DEPARTMENT) CENTRAL OFFICE MUMBAI 400 001
Notification No. FEMA 5(R)/(4)/2024-RB
May 06, 2024
Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024
In exercise of the powers conferred by sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Deposit) Regulations, 2016 (Notification No. FEMA 5 (R)/2016-RB dated April 01, 2016) (hereinafter referred to as 'the Principal Regulations'), namely:-
“6) An authorised dealer in India may allow a person resident outside India to open, hold and maintain an interest-bearing account in Indian Rupees and / or foreign currency for the purpose of posting and collecting margin in India, for a permitted derivative contract entered into by such person in terms of Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020, dated October 23, 2020, as amended from time to time, subject to directions issued by the Reserve Bank in this regard.”
(Latha Radhakrishnan) General Manager (Officer-in-Charge)
Published in the Official Gazette of Government of India Extraordinary Part III, Section 4, dated May 06, 2024
Foot Note: The Principal Regulations were published in the Official Gazette vide No. G.S.R. 389(E) dated April 01, 2016 in Part II, Section 3, sub-section (i) and subsequently amended vide G.S.R.1093 (E) dated 09.11.2018 G.S.R. 498 (E) dated 16.07.2019 No. FEMA 5(R)/(3)/2019-RB dated November 13, 2019
