This document is a corrigendum issued by the Reserve Bank of India (RBI), Foreign Exchange Department, on September 08, 2016. It amends Notification No. FEMA 5R/2016-RB, dated April 01, 2016, and published in the Gazette of India as G.S.R. 389(E). Specifically, the corrigendum modifies paragraph 6, subparagraph 3 of Schedule 1 of the original notification. The revised subparagraph 3 now states that Authorised Dealers may permit their branches/correspondents outside India to grant loans to or in favour of non-resident depositors or third parties, at the request of the depositor, for bona fide purposes against the security of funds held in Non-Resident External (NRE) accounts in India. This also includes the provision for remittance of funds from India, if required, to liquidate outstanding loan amounts. All other contents of the original Gazette Notification remain unchanged. The corrigendum was published in the Official Gazette of the Government of India, Extraordinary, Part II, Section 3, Subsection (i) dated 08.09.2016, under G.S.R. No. 869(E). Shekhar Bhatnagar, Chief General Manager-in-Charge, is listed as the contact person. The issuing department is the Foreign Exchange Department, Central Office, Reserve Bank of India, Mumbai 400 001.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the monetary policy and foreign exchange.
Foreign Exchange Department: A department within the Reserve Bank of India responsible for managing foreign exchange regulations.
Mumbai, Maharashtra: The location of the Reserve Bank of India's Central Office.
FEMA 5R2016RB: Notification number related to Foreign Exchange Management Act regulations issued by the Reserve Bank of India.
April 01, 2016: Date of the original notification being amended.
G.S.R. 389E: Gazette of India notification number for the original notification.
NRE accounts: Non-Resident External accounts, a type of bank account in India for non-resident Indians.
Shekhar Bhatnagar: Chief General Manager-in-Charge at Reserve Bank of India, signatory of the corrigendum.
Reserve Bank of India
Foreign Exchange Department
Central Office
Mumbai - 400 001
September 08, 2016
CORRIGENDUM
In the Notification of Reserve Bank of India, Foreign Exchange Department, No. FEMA 5(R)/2016-RB, dated
April 01, 2016 bearing G.S.R. 389(E) and published in the Gazette of India, Extraordinary, Part-II, Section 3,
Sub-section (i) (hereinafter referred as Gazette Notification):-
2. In SCHEDULE 1, under paragraph 6, the sub-paragraph (3) shall be substituted by the following -
“Loans outside India - Authorised dealers may allow their branches/correspondents outside India to
grant loans to or in favour of non-resident depositor or to third parties at the request of depositor for
bona fide purpose against the security of funds held in the NRE accounts in India and also agree for
remittance of the funds from India, if necessary, for liquidation of the outstanding.”
3. The other contents of the Gazette Notification shall remain unchanged.
(Shekhar Bhatnagar)
Chief General Manager-in-Charge
Published in the Official Gazette of
Government of India – Extraordinary – Part-
II, Section 3, Sub-Section (i) dated
08.09.2016- G.S.R.No. 869(E)