13D.1
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Opening and Designation of Blocked Accounts
Section 10 of FERA 1973 confers powers on Reserve Bank to block accounts in India of any person, whether an individual, firm or company resident outside India and to direct that payment of any sums due to that person shall be made to such blocked account. A blocked account means an account opened as a blocked account at any branch or office in India of a bank authorised in this behalf by Reserve Bank or an account blocked by order of the Reserve Bank. All authorised dealers are permitted to maintain blocked accounts subject to the conditions laid down herein. In certain cases, banks other than authorised dealers may also be authorised by Reserve Bank to maintain blocked accounts. No blocked account may be opened by an authorised dealer or an existing free account blocked, except under directions from Reserve Bank. A blocked account may not be opened in the name of a resident of India, except jointly with a non-resident.