Executive Summary:
This circular from the Reserve Bank of India (RBI) introduces an additional field in the Foreign Exchange Transactions Electronic Reporting System (FETERS) to capture the country code of the ultimate exporter/importer, aiming to facilitate the compilation of bilateral trade in services estimates. The revised reporting format is effective for forex transactions from April 1, 2019, and AD banks must update their systems accordingly. Revised Form A2 and BOP file formats are included.
Key Points / Main Content:
* **FETERS Reporting Enhancement:**
* An additional field is incorporated in the BoP file format under FETERS to capture the country code of the ultimate exporter/importer.
* **Implementation Details:**
* For service exports, banks should use available transaction information to report the country code of the ultimate exporting country.
* Form A2 is revised to capture country information for service imports.
* The country code should be a SWIFT code (Char2).
* **Revised Form A2:**
* For service import payments (Purpose Group Nos. 02, 03, 05, 06, 07, 08, 09, 10, 11, 15, 16, or 17), the "Name of the country providing ultimate services" must be indicated.
* **Reporting Timeline:**
* The revised format is for fortnightly reporting (15th and end of month) of forex transactions performed from April 1, 2019.
* **Regulatory Basis:**
* The circular is issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.
Impact Analysis:
**Authorised Dealer Category I Banks:**
* Impact: Banks need to modify their reporting systems and workflows to accommodate the new country code field in FETERS reporting.
* Action Required: Update information systems to capture the country code of the ultimate exporter/importer and comply with the guidelines for forex transactions performed from April 1, 2019.
**Applicants/Remitters (Using Form A2):**
* Impact: Applicants remitting for import of services under specific purpose groups will need to provide the name of the country providing the ultimate services on Form A2.
* Action Required: Provide the name of the country providing ultimate services when filling Form A2 for relevant service import payments.
Key Entities Referenced
Foreign Exchange Transactions Electronic Reporting System FETERS: A system for reporting foreign exchange transactions.
Form A2: A form used for application for remittance abroad, particularly for payments other than imports of goods.
Foreign Exchange Management Act, 1999: An act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Reserve Bank: The central bank of India, responsible for regulating the banking system and foreign exchange.
Liberalised Remittance Scheme: Scheme under which all resident individuals are allowed to freely remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.
BoP: Balance of Payments, a statement of all transactions made between entities in one country and the rest of the world over a defined period of time
Authorised Dealer Category I banks: Banks authorized by the Reserve Bank of India to deal in foreign exchange.
Ajay Kumar Misra: Chief General Manager in Charge at Reserve Bank of India.
RBI/2018-2019/145
A.P. (DIR Series) Circular No. 25 March 20, 2019
To,
All Authorised Dealers in Foreign Exchange
Madam / Sir,
Compilation of R-Returns: Reporting under FETERS
Attention of Authorised Dealer (Category I) banks is invited to A.P. (DIR Series) Circular No.84
dated February 29, 2012, A.P. (DIR Series) Circular No.15 dated July 28, 2014 and A.P (DIR
Series) Circular No.50 dated February 11, 2016 giving guidelines for compilation of R-Returns
for reporting under the Foreign Exchange Transactions Electronic Reporting System
(FETERS).
2. In order to facilitate compilation of estimates of bilateral trade in services, it has been decided to
incorporate an additional field for capturing the country code of ultimate exporter/importer in the BoP
file-format under FETERS. In case of export of services, bank may use the transaction information
available with them to report country-code of the ultimate exporting country, whereas Form-A2 is
being revised here for capturing the required country information for import of services.
3. The details of the additional field is as follows:
i. BoP file-format under FETERS
Field Format Remarks
Country Code (SWIFT Code) Char(2) To be added at the end of BOP file format
of ultimate exporter/importer
ii. Form A2 - If payment is for import of services (Purpose Group Nos. 02, 03, 05, 06,
07, 08, 09 10, 11, 15, 16 or 17), please indicate:
"Name of the country providing ultimate services: ..................... "
The Form A2 (revised) and the file format (revised) of the BOP file for reporting under FETERS are
given in Annex I and Annex II, respectively.
4. The revised format is for reporting of R-Returns on fortnightly basis (15th and end-month) for forex
transactions performed w.e.f. April 01, 2019. AD Banks should make the required changes in their
work-flows and information systems to capture the required additional data accordingly to comply with
the guidelines.
5. The directions contained in this circular have been issued under Sections 10(4) and 11(1)
of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to
permissions / approvals, if any, required under any other law.
Yours faithfully,
(Ajay Kumar Misra)
Chief General Manager -in -ChargeAnnex I
FORM A2
(To be completed by the applicant)
(For payments other AD Code No.__________________________
than imports of
Form No._____________________________
goods and
remittances (To be filled in by the Authorised Dealer)
covering
Currency_____ Amount ___Equivalent to Rs. _______
intermediary trade)
Application for (To be completed by the Authorised Dealer)
Remittance Abroad
I/We _____________________________________________________________
(Name of applicant remitter)
PAN No. __________________________________________________________
Address___________________________________________________________
authorize
__________________________________________________________________
(Name of AD branch)
To debit my Savings Bank/ Current/ RFC/ EEFC A/c. No. ____________________
together with their charges and
* 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 __________________________________
Amount (specify currency) __________________________________
* (Strike out whichever is not applicable) for the purpose/s indicated below
2) To be filled in by residents only if the remittance is made under LRS
Sr. Whether under LRS Purpose Code Description
No. (Yes/No)
(3) Payment for import of services (Purpose Group Nos. 02, 03, 05, 06, 07, 08, 09
10, 11, 15, 16 or 17), please indicate:
“Name of the country providing ultimate services: …………….”
(Remitter should put a tick (√) against an appropriate purpose code. In case of doubt/
difficulty, the AD bank should be consulted).Declaration
(Under FEMA 1999)
1. I, ………………. …………(Name), hereby declare that the total amount of foreign
exchange purchased from or remitted through, all sources in India during the
financial year including this application is as per the extant FEMA Regulations and
certify that the source of funds for making the said remittance belongs to me and the
foreign exchange will not be used for prohibited purposes / Foreign exchange
purchased from you is for the purpose indicated above.
Details of the remittances made/transactions effected under the Liberalised
Remittance Scheme in the current Financial Year (April-March)…………
Sr. Date Amount Name and address of AD branch/FFMC through
No. which the transaction has been effected
Signature of the applicant
(Name)
Date:
Certificate by the Authorised Dealer
This is to certify that the remittance is not being made by/ to ineligible entities and that
the remittance is in conformity with the instructions issued by the Reserve Bank from
time to time under the Scheme.
Name and designation of the authorised official:
Stamp and seal
Signature:
Date:Annex II
FETERS File Layouts
1. BANKCODE_BOP6.TXT relating to transactions involving sale and purchase of foreign
exchange (excluding inter-office, inter-bank, RBI transactions) during the reporting fortnight
Field Format Remarks
AD Code Char (7) BSR Part-1 Uniform
Code
Fortnight-end Date YYYYMMDD
Transaction Date YYYYMMDD Valid date within
fortnight
Serial No. Num. (4)
Purpose Code Char (5) Purpose code starting
with P/S (Part A/B of
Annex I)
Country Code Char (2) SWIFT code
Currency Code Char (3) SWIFT code
Amount [in Foreign Currency (FC)] Num. (15)
Date of Shipment YYYYMMDD
LC char (1) 1 for Yes; 0 for No
Country of Vostro a/c Holder char (2) SWIFT code
Country Code of ultimate Char (2) SWIFT Code
exporter/importer
2. BANKCODE_QE.TXT for Cover Page Totals
Field Format Remarks
A.D. Code Char (7)
Fortnight-end date YYYYMMDD
Serial Number Num. (4)
Purpose Code Char (5) As per Part C of Annex I
Country of Vostro A/c holder Char (2)
Currency Char (3)
Amount in Currency Num. (15)
Return (Vostro/Nostro) Char (1) V for Vostro; N for Nostro