10C.17
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Opening of Foreign Currency Collection Accounts
(i) In order to facilitate collection of subscriptions from NRIs/OCBs at foreign centres, Reserve Bank may allow Indian companies inviting NRI investments to open temporary foreign currency bank accounts at various foreign centres. After final allotment of shares/debentures to non-resident subscribers to the new issues, refund of excess subscriptions is allowed to be made out of funds lying in the overseas accounts. The temporary bank accounts have to be closed thereafter and the balance repatriated to India.
(ii) Applications for opening temporary foreign currency accounts for the above purpose may be made by letter giving names and addresses of overseas bank branches with whom accounts are to be opened, full details of NRI issue, and number and date of Reserve Banks approval for issue of shares/debentures to NRIs/OCBs, to the concerned office of Reserve Bank if the NRI investment is on non-repatriation basis or where the investment is to be made in 100% Export Oriented Unit and to Central Office of Reserve Bank in other cases.