Cir. No.43/1998-RB, dt. 03/11/1998
- Document type
- Circular
- Dated
- Category
- ADMA (Series) Circular
Foreign Exchange,Money Changers,Restricted Money Changers
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
A.D.(M.A. Series) Circular No.43 November 3, 1998
A.M.(F.L. Series) Circular No.3
A.M.(R.L. Series) Circular No.3
To
All Authorised dealers in Foreign Exchange
All Authorised Full-fledged Money Changers
All Authorised Restricted Money Changers
Dear Sirs,
Amendments to Exchange Control Manual (ECM)and Memorandum RLM
It has been decided to amend/modify the Exchange Control Regulations as stated in the following paragraphs.
1. Reporting of transactions by Exchange Bureaux
In terms of paragraph 3E.17(ii) of the ECM, Exchange Bureaux of authorised dealers have to submit monthly statements of purchases and sales of foreign currency notes and coins in form FLM-8. To avoid double accounting of transactions undertaken by Exchange Bureaux, it has now been decided to discontinue the submission of this statement. The link branches should, however, include the transactions of Exchange Bureaux in item 1.C/11.C of R-Returns (Nostro).
2. Transactions between authorised dealers/full-fledged money changers/restricted money changers
In terms of paragraph 18 of Memorandum RLM, restricted money changers are required to surrender their collection of foreign currency notes, coins and travellers cheques to authorised dealers or full-fledged money changers in India. It has now been decided that the transactions between authorised dealers, full-fledged money changers and restricted money changers should not be settled in cash. Accordingly, henceforth, all such transactions should be settled by way of crossed cheques/demand drafts.
3. The following consequential amendments may be carried out in Exchange Control Manual/Memorandum RLM.
ECM, Volume I
i) Sub-paragraph (ii) of paragraph 3E.17 may be deleted.
Memorandum RLM
ii) The following sentence may be added at the end of existing paragraph 18 of Memorandum RLM:
"The transactions between authorised dealers, full-fledged money changers and restricted money changers should, however, be settled by way of crossed cheques/demand drafts. Under no circumstances settlement should be made in cash."
4. Authorised dealers may bring the contents of this circular to the notice of their concerned constituents.
5. The directions contained in this circular have been issued under Section 73(3) of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any contravention or non-observance thereof is subject to the penalties prescribed under the Act.
Yours faithfully,
B. MAHESHWARAN
Chief General Manager