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June 2009

Foreign Exchange Management (Deposit) Regulations, 2000 — Loans to Non-Residents/Third Party against security of Non-Resident (External) Rupee Accounts [NR(E)RA]/Foreign Currency Non-Resident (Bank) Accounts [FCNR(B)] — Deposits

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
Reading Time 1 mins
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Part C : RBI/FEMA


Given below are the highlights of certain RBI Circulars

  1. A. P. (DIR Series) Circular No. 66, dated April 28, 2009

Foreign Exchange Management (Deposit) Regulations,
2000 — Loans to Non-Residents/Third Party against security of Non-Resident
(External) Rupee Accounts [NR(E)RA]/Foreign Currency Non-Resident (Bank)
Accounts [FCNR(B)] — Deposits

Presently, loans up to Rs. 20 lakh can be availed by the
account holder/third party against security of deposits in NR(E)RA and FCNR(B)
accounts.

This Circular has increased this limit from Rs. 20 lakh to Rs. 100 lakh.
Hence, account holder/third party can avail loans up to Rs. 100 against
security of deposits in NR(E)RA and FCNR(B) accounts.

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