**Summary:**
This circular, A.P. DIR Series Circular No. 48 / 2015-16 / 115, issued by the Reserve Bank of India (RBI) on February 4, 2016, addresses the definition of "currency" under the Foreign Exchange Management Act (FEMA), 1999. It draws attention to Notification No. FEMA. 15(R)/2015-RB dated December 29, 2015, which supersedes Notification No. FEMA 15/2000-RB. The new regulations, effective December 29, 2015, define debit cards, ATM cards, and similar instruments that can create a financial liability as "currency". The circular directs all Category I Authorised Dealers and Authorised Banks to inform their constituents of these changes. The directions are issued under Sections 10(4) and 11(1) of FEMA, 1999 (42 of 1999) and do not override other legal requirements. Contact person for this circular is B. P. Kanungo, Principal Chief General Manager, Reserve Bank of India.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office mentioned in the document is located.
A.P. DIR Series Circular No.48: A circular issued by the Reserve Bank of India (RBI) related to Authorised Persons Directions.
Notification No. FEMA. 15R/2015-RB: A notification issued by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA).
G.S.R. No.1008 E: A government notification number related to regulations issued under the law.
Authorised Dealers: Entities authorized by the Reserve Bank of India to deal in foreign exchange.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India enacted 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.
B P Kanungo: Principal Chief General Manager at Reserve Bank of India, as indicated by the signature at the end of the document.
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2015-16/ 313 February 04, 2016
A.P. (DIR Series) Circular No.48/2015-16 [(1)/15(R)]
To
All Category - I Authorised Dealers and Authorised Banks
Madam/ Sir
Definition of "Currency", 2015
Attention of Authorised Dealers (ADs) is invited to Notification No. FEMA. 15(R)/2015-
RB dated December 29, 2015 notified vide G.S.R. No.1008 (E) dated December 29,
2015, which supersedes the Notification No. FEMA 15/2000-RB.
2. Synopsis of the new regulations is given as under:
Debit cards, ATM cards or any other instrument which can be used to create a financial
liability may be defined as currency.
3. The new regulations have been notified vide Notification No. FEMA. 15(R)/2015-RB
dated December 29, 2015, c.f. G.S.R. No.1008 (E) dated December 29, 2015 and shall
come into force with effect from December 29, 2015.
4. AD Category- I banks may bring the contents of the circular to the notice of their
constituents concerned.
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,
(B P Kanungo)
Principal Chief General Manager