**Summary:**
This circular, A.P. DIR Series Circular No. 49 (2015-16/118R) issued by the Reserve Bank of India (RBI) on February 4, 2016, addresses regulations regarding the purchase of foreign exchange via postal orders and money orders. It references and supersedes Notification No. FEMA. 18/2000/RB with Notification No. FEMA. 18(R)/2015-RB, dated December 29, 2015, and notified via G.S.R. No. 1009(E) on the same date. The key provision of the new regulations is the granting of general permission for any person to buy foreign exchange from any post office in India using postal orders or money orders. These regulations, effective December 29, 2015, are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). AD Category I banks are instructed to inform their constituents of these changes. B.P. Kanungo, Principal Chief General Manager, is the contact person at the RBI. The RBI is located in Mumbai, 400 001.
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 in India where the Reserve Bank of India is located.
A.P. DIR Series Circular No.49: A circular series issued by the Reserve Bank of India concerning regulations for authorised persons.
FEMA. 18R/2015-RB: Notification number related to Foreign Exchange Management Act regulations.
G.S.R. No.1009 E: A notification number related to government statutes and rules.
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.
Category I Authorised Dealers: Authorised entities permitted to deal in foreign exchange.
B P Kanungo: Principal Chief General Manager at Reserve Bank of India.
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2015-16/ 314 February 04, 2016
A.P. (DIR Series) Circular No.49/2015-16 [(1)/18(R)]
To
All Category - I Authorised Dealers and Authorised Banks
Madam/ Sir
Post Office (Postal Orders/Money Orders), 2015
Attention of Authorised Dealers (ADs) is invited to Notification No. FEMA. 18(R)/2015-
RB dated December 29, 2015 notified vide G.S.R. No.1009 (E) dated December 29,
2015, which supersedes the Notification No. FEMA. 18/2000-RB.
2. Synopsis of the new regulations is given as under:
General permission has been given to any person to buy foreign exchange from any
post office in India in the form of postal order or money order.
3. The new regulations have been notified vide Notification No. FEMA.18(R)/2015-RB
dated December 29, 2015, c.f. G.S.R. No.1009 (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