In yet another move on current account liberalisation, the Reserve Bank of India on Wednesday said the balances in the Export Earners' Foreign Currency account and resident foreign currency RFC (D) accounts may be credited to NRE/FCNR-B accounts at the request of the account holders if their residential status is changed from resident to non-resident.
It has also allowed an Indian resident to open, hold and maintain foreign currency account with a bank outside or in India if he is a project/service exporter.
Accordingly, the approving authority of the overseas contract -- be it an authorised dealer or the Exim Bank or a working group -- may approve the proposal of exporter, to open, hold and maintain foreign currency account in India.
Further, it has allowed a foreign embassy/diplomat/consulate general to purchase and sell immovable property in India other than agricultural land, plantation property and farm house provided it gets a clearance from Centre.
Besides, the consideration for acquisition of immovable property in India should be paid out of funds remitted from abroad through banking channel.
In case of an exporter, the person will have to open, hold and maintain a separate foreign currency account for each project under execution abroad.
While the authorised dealers shall not avail of rupee loans against the security of balances held in such accounts and not issue overdraft in the account, the balance in the account will be subject to SLR/CRR requirement as prescribed by RBI from time to time.
At present, project/service exporters are required to obtain specific approval of the RBI for making payment to their Indian suppliers of goods/services in foreign currency in India out of foreign currency accounts opened/maintained in India for execution of projects abroad.
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