NTF. NO. FEMA 80/2003-RB, DT. 08/01/2003

NTF. NO. FEMA 80/2003-RB, DT. 08/01/2003

Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Amendment Regulations, 2003

G.S.R. 531(E).– In exercise of the powers conferred by clause (d) of Sub-section (3) of Section 6 Sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in partial modification of its Notification No. FEMA 3/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, namely:–

1. Short title and commencement

1.These Regulations may be called the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Amendment) Regulations, 2003.

2. They shall come into force from the date of their publication in the Official Gazette.

2. Amendment of the Regulations

In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 in Regulation 5, after sub-Regulations (5), the following Sub-Regulations shall be inserted, namely:–

“(6) Indian companies in India may grant loans in foreign currency to the employees of their branches outside India for personal purposes provided that the loan shall be granted for personal purposes in accordance with the lender’s Staff Welfare Scheme/Loan Rules and other terms and conditions as applicable to its staff resident in India and abroad.”

Sd/-
K. J. Udeshi,

Executive Director

Footnote: The Principal Regulations were published in the Official Gazette vide No. G.S.R. 386(E), dated May 3, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide No. G.S.R. 674(E), dated August 14, 2000, No. G.S.R. 476(E), dated April 29, 2002 and No. G.S.R 854(E), dated November 1, 2002.

(Above Footnote has been added vide Corrg. G.S.R. 262(E), Dt. 01/04/2004 )

(Please refer CIR. NO. 74/2003-04-RB, DT. 20/02/2004 - FEMA 1999 - Grant of Loans by Indian Companies to the Employees of their Branches Outside India)