RBI/2007-08/233
A. P. (DIR Series) Circular No. 28
A. P. (FL/RL Series) Circular No. 02

February   06, 2008

To,

All Authorised Dealer Category - I Banks

Madam / Sir,

Memorandum of Instructions for Opening and Maintenance of  Rupee / Foreign Currency Vostro  Accounts of Non-resident Exchange Houses

Attention of Authorised Dealer Category – I (AD Category – i) banks is invited to the Memorandum of Instructions for opening and maintenance of rupee / foreign currency Vostro accounts of non-resident Exchange Houses, as amended from time to time.

2. In view of the increased number of transactions being handled by the Exchange Houses and the rapid developments in the communication facilities between Exchange Houses and drawee banks, there was a need to rationalise the existing instructions on maintenance of rupee / foreign currency Vostro accounts of non-resident Exchange Houses. Accordingly, the Memorandum of Instructions containing procedural instructions has been rationalized. The revised instructions are annexed (Annex-I).

3. AD Category - I banks may bring the contents of this circular to the notice of their constituents concerned.

4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

                          Yours faithfully,

(Salim Gangadharan)
Chief General Manager

Annex-I

[Annex to A. P. (DIR Series) Circular No. 28 dated February 06, 2008]

MEMORANDUM OF INSTRUCTIONS FOR OPENING AND MAINTENANCE OF RUPEE/ FOREIGN CURRENCY VOSTRO ACCOUNTS OF NON-RESIDENT EXCHANGE HOUSES

Prior approval of the Reserve Bank is required to be obtained by Authorised Dealer Category-I banks for opening and maintaining rupee/ foreign currency vostro accounts of non-resident Exchange Houses. The following is the detailed guidelines for opening and maintenance of rupee/ foreign currency vostro accounts of non-resident Exchange Houses.

(A) Operations of Rupee Vostro Accounts

(B) Permitted Transactions

(C) Rupee Drawing Arrangement Procedures and Collateral Cover

(D) Foreign Currency Drawing Arrangements

(E) Miscellaneous Provisions

(F) Internal Control and Monitoring of Accounts

(G) Reports / Statements 

(A) Operations of Rupee Vostro Accounts

1. Under the Rupee Drawing Arrangements (RDAs), inward remittances are received in India through Exchange Houses situated in Gulf countries, Hong Kong and Singapore.  Prior approval of the Reserve Bank is required for opening and maintaining rupee vostro accounts of non-resident Exchange Houses. Authorised Dealer Category - I (AD Category – I) banks should apply to the Reserve Bank, in the form provided at Annex II with necessary documents for opening and maintaining in India non – resident rupee vostro accounts of Exchange Houses from Gulf countries, Hong Kong and Singapore.

2. This memorandum contains various provisions pertaining to the opening and maintenance of non-resident rupee Vostro accounts of Exchange Houses.

3. General Instructions :-

i. While considering the request of an Exchange House for opening an account, the AD Category - I banks concerned should make necessary enquiries  about the financial standing of the Exchange House, in accordance with  normal banking practice and satisfy themselves fully in all respects.  AD Category - I banks should also ensure that the Exchange Houses hold valid licenses issued by the Local Monetary/ Supervisory Authority concerned and have necessary authority / license to transact currency exchange/ money transfer business.

ii. The arrangement which an AD Category - I bank enters into with an Exchange House should be subject to comprehensive legal documentation and duly registered. It should be ensured that all the partners of the Exchange Houses are jointly and severally bound to honour the obligations devolving on the Exchange Houses under the agreement.

iii. The normal banking requirements of registration of Power of Attorney/ Specimen signatures of signing officials of the Exchange Houses should be observed.

4. Instructions regarding operations in the rupee vostro accounts.

i. The accounts can be used for channeling inward remittances to India primarily on private account. The remitter and the beneficiary (in most cases) should be individuals. Remittances through Exchange Houses for financing of trade transactions are permitted up to Rs 200,000 (Rupees two lakh only) per transaction. The accounts should not be used for outward remittances from India.

ii. The accounts should run on a credit basis. No overdraft should be granted to the account holders. However, in case of Designated Depository Agency (DDA) procedure, the funds lying in the DDA A/c may be taken into account, if need be. AD Category - I banks shall adopt value dating where on-line debit to Rupee Vostro Account is not possible on a real time basis when any payment is made at drawee branches, to check adequacy of funds and detect concealed overdrafts. However, the drawee branches should be networked at the earliest.

iii. Separate Rupee Vostro account shall be maintained for each arrangement. The accounts should be funded by sale of permitted foreign currency to the AD Category - I bank, which maintains the account. Rupee funds transferred from another Authorized Dealer Category-I or from another Vostro account will not be eligible for credit to the account.

iv. Debits of permitted types ( vide item 4 (i) above ) may be made freely and given the same status as remittances made in foreign exchange in an approved manner to India. Thus, such payments will be eligible for credit to Non-Resident (External) Rupee Accounts maintained by Non-resident Indians, or for acceptance under priority allotment etc schemes. In order that tourists (whether Indian or not) receiving remittances through such accounts may prove the external sources of the funds where required (such as for payment of passages in India or for re-conversion of unutilised balances), AD Category - I banks may issue certificates in the same form as for inward remittances received through rupee accounts of overseas banks.

v. Funds in such accounts will not be convertible, nor will they be transferable to other AD Category - I banks or to non-resident accounts of other such institutions or banks with the same AD Category - I bank.

vi. Balances in rupee account will not qualify for payment of interest. 

vii. The branch of the AD Category – I bank maintaining the Rupee Vostro  account of the Exchange House should not credit to the account, rupees purchased by the latter unless confirmation is received to the effect that the Nostro account of the AD Category - I bank has been credited with the counter-value in foreign currency (cf. paragraph 3.3.1 of the Guidelines for Internal Control over Foreign Exchange Business, December, 1996);

viii. AD Category - I banks may like to obtain suitable and adequate collateral either in the form of a cash deposit or guarantee of a bank of international repute, depending on the type of arrangement to take care of credit and operational risks.

ix. The tie-up of an AD Category-I bank with an Exchange House is required to be approved by the Reserve Bank. A cap of 20 on the number of arrangements and 300 on the number of drawee branches has been prescribed by the Reserve Bank as a prudential measure. However, the above restrictions may be relaxed by the Reserve Bank, subject to the AD Category - I banks having sound risk management systems and on-line monitoring of funds position to avoid concealed overdrafts in the vostro accounts.

(B) Permitted Transactions

Drawing Arrangements with Exchange Houses are primarily designed to channel inward personal remittances. Under no circumstances, donations / contributions to charitable institutions should be routed through the Exchange Houses. The following is the list of permissible transactions under Drawing Arrangements with Exchange Houses.

1. Credit to Non-resident (External) Rupee accounts maintained by Non-resident Indians in Indian Rupees.

2. Payments to families of Non-resident Indians.

3. Payments in favour of Insurance companies, Mutual Funds and the Post Master for premia / investments.

4. Payments in favour of bankers for investments in shares, debentures.

5. Payment to Coop. Housing Societies, Govt. Housing Schemes or Estate Developers for acquisition of residential flats in India inindividual names subject to compliance of regulations thereof by the Non-resident Indians.

6. Payments of tuition/ boarding, examination fee etc. to schools, colleges and other educational institutions.

7. Payments to medical institutions and hospitals for medical treatment of NRIs / their dependents and nationals of Gulf Countries in India.

8. Payments to hotels by nationals of Gulf countries / NRIs for their stay. 

9. Payments to travel agents for booking of passages of NRIs and their families residing in India towards their travel in India by domestic airlines / rail, etc.

10. Trade transactions up to Rs. 2 lakhs per transaction.

Note : No cash disbursement of remittances received is allowed under Rupee / Foreign Currency Drawing Arrangements.

(C) Rupee Drawing Arrangement Procedures and Collateral Cover
Rupee Drawing Arrangements can be conducted under Designated Depository Agency (DDA), Non-Designated Depository Agency (Non-DDA) and Speed Remittance procedures.

1. Designated  Depository Agency (DDA)  Procedure

i. The Exchange House will be required to open a bank account in a convertible foreign currency in the name of the drawee bank (a/c- Exchange House) with an international bank (DDA) acceptable to the drawee bank at a centre mutually agreed or with the drawee bank itself at the branch where the corresponding rupee Vostro account is maintained, with the prior approval of the Reserve Bank.

ii. The Exchange House will, at the end of each day arrive at the total drawings in Indian rupees for the day and will convert the same into a foreign currency which sum shall be deposited into the account of the drawee bank (a/c-Exchange House) (as described at 1(i) above) on the next working day before noon.

iii. The Exchange House will send to the drawee bank information about the total number and the aggregate value of drafts drawn and daily deposits in and transfer from the DDA account as frequently as possible.

iv. The DDA account will hold the funds under lien to the drawee bank. The DDA account will allow debits only (a) on account of transfer to the Nostro account of the drawee bank where the DDA account is maintained with a bank other than the drawee bank, (b) for crediting the Rupee vostro account of the Exchange House by selling permitted foreign currency to the drawee bank where the DDA account is maintained with the drawee bank.

v. It will be the responsibility of the Exchange House to arrange for the transfer of the sum collected on any particular day to the DDA account. The float period for the funds with DDA account will be decided by the drawee bank in consultation with the Exchange House subject to a maximum of three days.

vi. The interest earned on the amount deposited by the Exchange House with the DDA as provided for at 1 (ii) above up to the date of transfer to the Nostro account of the drawee bank will accrue to the Exchange House.

vii. To ensure compliance of the above, the drawee bank in India will appoint a firm of practicing Chartered Accountants/ Auditors operating in the country concerned to examine the daily drawings and deposits in the accounts with the DDA as well as transfer to the Nostro account of the drawee bank. For this purpose, the Exchange House will undertake to allow the auditors to inspect the books, pay in vouchers, etc., of the Exchange House in so far as they pertain to rupee drawing arrangement. Such inspections will be done at least once or twice in every week by the auditors.

viii. As an alternative to the appointment of auditors as mentioned in paragraph 1 (vii) above, the AD Category - I bank may depute a suitable official as their representative to the Exchange House to take up such functions so as to safeguard the interests of the AD Category - I bank.

ix. The auditors / representative will promptly report the findings to the drawee bank. In case of default on the part of the Exchange House, the drawee bank will as per terms and conditions of agreement, terminate the agency arrangement under notice to the Exchange House. The termination will also be promptly reported to the Reserve Bank.

x. So long as the Exchange House complies with the guidelines, the drawee bank will ensure that the drafts issued are honoured at the branches mutually agreed to.

xi. The remuneration payable to auditors will be borne by the drawee banks.

xii. Drafts drawn by the Exchange House should have a validity of only three months from the date of issue thereof.

xiii. AD Category - I banks should satisfy themselves that the books of accounts of Exchange Houses are regularly audited by auditors approved by the local supervisory authorities.

xiv. AD Category - I banks should call for periodical credit reports, audited balance sheet and profit and loss account of the Exchange House and other relevant information so as to take a decision regarding continuance of accounts in their books.

xv. Valid copies of all licenses should also be kept on record by the AD Category - I bank.

xvi. Since the books of accounts of the Exchange House cannot be inspected, AD Category - I banks should periodically review the arrangement by paying visits to the Exchange Houses and / or by periodical review of opinion reports. The visits of officials from Authorized Dealers Category-I should be at a sufficiently senior level, fully conversant with the conduct of the Non-resident Rupee Accounts of the Exchange House.

Collateral Cover : For Exchange Houses which have not completed three years of operation, collateral cover in cash deposit or guarantee from a bank of international repute equivalent to one month’s projected drawings may be obtained for DDA/ Non-DDA/ Speed Remittance arrangements.  For Exchange Houses which have completed three years of successful operations, no collateral is prescribed.  However, AD Category - I banks may secure their position by requiring adequate collateral cover.  Cash deposit or a guarantee from a bank of international repute equivalent to 15 days’ estimated drawings may be obtained as collateral cover where it is not possible to appoint auditors as mentioned at 1(vii) above.

2. Non- DDA procedure

As an alternative to maintaining a DDA account and appointment of auditors as above, the AD Category - I bank may opt for Non-DDA procedure.

Under Non – DDA procedure, the Exchange House funds their vostro account with the AD Category - I bank by purchasing Rupees from the AD Category - I bank against USD for the total of drafts issued by them at periodic intervals and sends a weekly statement of drawing and funding to the AD Category - I bank.

Collateral Cover : The Exchange House shall keep a cash deposit of USD equivalent to 15 days drawings on moving average basis in India or abroad. The deposit should be in the name of the AD Category - I bank with interest thereon at market related rates payable to the Exchange House placing the deposits. The Exchange House shall also furnish a bank guarantee from an international bank of repute for an equivalent amount. The amount of deposit and guarantee should be periodically reviewed and properly monitored by the AD Category - I banks to ensure that the collateral covers adequately the drawings and account for the pipeline debits evaluated. If there is a restriction on the bank’s right to depute its own staff for examination of books of the Exchange House, as was in case of Exchange Houses in Kuwait, additional cash deposit/ guarantee from a bank of international repute equivalent to 15 days estimated drawings may be obtained.

3. Speed Remittance Procedure  

AD Category - I banks are permitted to enter into RDA under speed remittance procedure wherein-

i) The Exchange House sends payment instructions with complete details like name address, etc via SWIFT or internet.

ii) The Exchange House funds the rupee account through the Nostro account of the AD Category - I bank well in advance before issuing payment instructions.

iii) On verification of data and availability of balance in the Vostro account of the exchange house the AD Category - I bank issues drafts in favour of the beneficiary or credit the account of the beneficiary.

iv) The Exchange House shall address all payment instructions to the account holding branch of the AD Category - I bank irrespective of the beneficiaries’ centre.

v) The branch shall make no payment unless clear funds are available in the account.

vi) The AD Category - I bank shall obtain date-wise information regarding number and aggregate value of such transfers from the Exchange House.

vii) Where facility of speed remittance is extended to existing rupee drawing arrangements the Exchange House shall open a separate rupee account with the prior approval of the Reserve Bank and no payment instructions shall be executed unless there are clear funds available in this account. However, where the operations in the existing rupee drawing arrangements under DDA/ Non-DDA procedure are satisfactory, ADs Category-I banks can extend the facility of speed remittance to the same Exchange House without prior approval of the Reserve Bank, subject to usual terms and conditions and after obtaining all the necessary documents from the Exchange House. However, the Reserve Bank may be informed immediately.

Collateral Cover : The Exchange House shall keep with the AD Category - I bank a cash deposit in any convertible foreign currency equivalent to 3 days’ estimated drawings on which market related interest rate may be paid. The Exchange House can also keep the said collateral in the form of guarantees from a bank of international repute. The adequacy of collateral should be reviewed by the AD Category - I bank at regular intervals.

(D) Foreign Currency Drawing Arrangements

AD Category - I banks may enter into foreign currency drawing arrangements under DDA or Non-DDA procedure with those Exchange Houses with whom they have Rupee Drawing Arrangements (RDAs).

i) Exchange Houses shall draw drafts in any convertible currency on ‘A’ or ‘B’ category branches of AD Category - I bank. No ‘C’ category branch is allowed to participate in the arrangement.

ii) The foreign currency arrangement shall be kept distinct from the rupee drawing arrangement.

iii) A separate foreign currency vostro account of the Exchange House shall be opened with the account maintaining branch. Payment of such drafts shall be made by debit to this account maintained by the Exchange House and not to the Nostro Account of the AD Category - I bank.

iv) The aggregate amount of drafts drawn in foreign currency by the Exchange House on any day should be credited to the Nostro Account of the drawee bank latest by close of business on the second working day.

v) The account maintaining branch of the drawee AD Category - I bank should credit foreign currency vostro account of the Exchange House on receipt of confirmation regarding credit to their nostro account.

vi) AD Category - I banks should ensure that foreign currency accounts are funded at all times.

If the arrangement is under Non-DDA procedure, the Exchange House should communicate to the account maintaining branch by any electronic mode, before close of the following working day, the number and aggregate value of drafts drawn in foreign currency. Under DDA procedure, such information may be obtained frequently, at least on a bi-weekly basis.

Collateral cover : Exchange Houses should keep a deposit of not less than USD 50000/- with the drawee AD Category - I bank. Adequacy of quantum of deposit kept with the bank should be reviewed every six months on the basis of operations under this arrangement and if necessary the Exchange House should increase the quantum of deposit. AD Category - I banks should allow interest on this deposit at an appropriate rate.

AD Category - I banks are allowed to keep the amount of deposit required to be kept under foreign currency draft drawing arrangements and Non-DDA procedure of Rupee Drawing Arrangement in India with the Account maintaining branch.

(E) Miscellaneous Provisions

(i) AD Category-I banks should adhere to the KYC/ AML Guidelines issued by the Reserve Bank, as applicable, while undertaking any transaction under Rupee/ Foreign Currency Drawing Arrangements.

(ii) AD Category - I banks should include in their concurrent audit the Rupee/ Foreign Currency Drawing Arrangement to ensure that credit of funds to the vostro account of the Exchange House takes place before payments are made to the beneficiaries.

(iii) AD Category - I banks should undertake a ‘due diligence’ exercise in respect of remittances received through Rupee/ Foreign Currency Drawing Arrangements so that regulations relating money laundering are complied with scrupulously. AD Category - I banks should call for an annual compliance report from the Exchange Houses duly certified by their auditors that they are adhering to the home country regulations on Anti Money Laundering.

(iv) AD Category - I banks should keep the Reserve Bank informed of the unusual feature(s) in the operations of the Rupee/ Foreign Currency Drawing Arrangement exercising constant vigil in the matter.

(v) AD Category - I banks shall ensure that licenses of the Exchange Houses which have expired are renewed and copies of authenticated English versions placed with them for their record.

(vi) The Exchange Houses should not enter into any arrangement with service providers for their back office operations in India such as issuance of drawing advices and stop payment instructions on their behalf and AD Category - I banks should not act on the instructions of such service providers. However, Exchange Houses can establish liaison offices in India and their back office operations in India such as printing of drafts, issuance of drawing advices and stop payment instructions can be conducted by the liaison offices in India with prior approval of the Reserve Bank.

(vii) AD Category - I banks should obtain approval of the Reserve Bank for maintaining accounts of such Exchange Houses whose name and constitution etc. undergo change.

(F) Internal Control and Monitoring of Accounts

(i)  AD Category - I banks should put in place adequate internal control and a system of monitoring of accounts as per the extant instructions. Dealings with Exchange Houses should be strictly on a credit basis at all times.

(ii) Self-inspection of the vostro accounts of Exchange Houses :- AD Category - I banks are required to cause inspection of the vostro accounts of Exchange Houses on a half-yearly basis through experienced officers. The inspection reports should be carefully gone through by the competent authorities in ADs Cat-I so that prompt corrective action is initiated. Observations thereon shall be included in the annual review of the accounts submitted to the Board.

(G) Reports / Statements

(i) Statement A : This statement (as at Annex-III) is designed to elicit details of operations in rupee/ foreign currency vostro accounts of Exchange Houses and has to be prepared every month Exchange House-wise. This statement should be critically examined to ascertain whether funds held in the account are adequate to cover estimated pipeline debits. The Top Managements of the ADs Cat-I may work out the pipeline data and set their own limits, the adherence to the limits set should be informed to the Top Management on a quarterly basis.

(ii) Statement B : A consolidated half-yearly statement(as at Annex-IV)  showing position of rupee/ foreign currency vostro accounts of Exchange Houses which are to be closed/ are in the process of closure.

(iii)Statement C : A monthly statement (as at Annex- V) giving information regarding Exchange House’s account held at overseas branches of Indian banks under DDA/ Non-DDA procedures for holding collection proceeds and additional collaterals.

(iv) Statement D : This monthly statement(as at Annex- VI)  provides information about operations in the foreign currency vostro account of the Exchange House.

Note :- While statements A to D are not required to be submitted to RBI, ADs Cat-I should prepare these statements and cause inspections at the prescribed periodicities. The relative statements/ reports should invariably be submitted to their respective Top Managements with suitable explanatory notes indicating corrective measures taken/ being initiated.

(v) Statement E : This statement (as at Annex- VII) is designed to collect statistical information on total remittances every quarter and growth of business. This quarterly statement is required to be submitted to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Central Office, Forex Markets Division, Mumbai- 400001 before 15th of succeeding month to which the quarter relates.

(vii) Annual Review : AD Category - I banks should submit to the Chief General Manager, Reserve Bank of India, Foreign Exchange Department, Central Office, Forex Markets Division, Mumbai- 400001 by 30th June every year an annual review note covering the period January 1 to December 31 of the previous year, on the vostro accounts of the Exchange Houses maintained by them under the Rupee/ Foreign Currency Drawing Arrangements (RDAs) duly approved by their Board. The Review Note should cover various aspects like (a) credit-worthiness of the Exchange House (based on financial statements and market reports), (b) validity of licenses of Exchange Houses and compliance of home country KYC/ AML Guidelines by Exchange Houses  (c) financial losses suffered if any on account of transactions, events, disputes etc., (d) business turnover separately under each arrangement, (e) funding arrangements in respect of vostro accounts, (f) half-yearly inspection of the account of the Exchange House, (g) supervision (system in vogue to monitor operations in the account), (h) internal control and risk management system, (i) overdrafts and interest collected. An extract of directions, if any issued by the Board should be forwarded to the Reserve Bank along with the Annual Review note. While submitting the annual review note, the particulars such as (a) complete particulars of Drawing Arrangements (DDA/ Non-DDA / Speed Remittance) AD Category - I banks have with Exchange Houses with the date of approval by RBI and opening of the vostro accounts (b) dates of termination of Drawing Arrangements, if any (including Drawing Arrangements which could not be concluded), (c) number of drawee branches under each arrangement should be included.

Annex- II

[Annex to A. P. (DIR Series) Circular No. 28 dated  February 06, 2008]

Application for obtaining permission to enter into
Rupee / Foreign Currency Drawing Arranements with Exchange Houses

(a) The application for obtaining permission to enter into Rupee / Foreign Currency Drawing Arrangements with Exchange Houses should be completed and submitted in the prescribed format (given below), to the Chief General Manager, Foreign Exchange Department, Forex Markets Division, Reserve Bank of India, Central Office, Mumbai- 400001. The application should be signed by the General Manager (or an officer of equivalent rank), International Banking Division/ Foreign Department of the applicant AD Category - I bank.

(b) Documentation :

AD Category - I banks should submit the following documents along with the application:

(i) Certified copy of the license (English version) issued by the Central Bank/ any other Supervisory Authority of the country where the Exchange House is situated.

(ii) Certified copy/ ies of license(s) issued by Municipal Authorities and / or any other Government regulatory/ controlling authority in the country of the Exchange House. (applicable to the Exchange Houses in U.A.E.)

(iii) A Certificate from a Chartered Accountant, regarding compliance with anti money laundering norms in the home country by the Exchange House.

(iv) Certified copies of confidential opinion/ report recorded by (a) Embassy of India in the country concerned and (b) two bankers of the Exchange House.

(v) Audited Balance Sheets and Profit and Loss Account Statements of the Exchange House for the previous three years.

(vi) Copy of the Board Resolution of the AD Category - I bank for entering into the arrangement.

(vii) Copy of letter from the Exchange House regarding the proposal to enter into the Rupee/ Foreign Currency Drawing Arrangement along-with the provision of collateral, whereever necessary. 

Part  A-   Particulars  of  the applicant  bank  and  its  existing  arrangement(s),  if  any

Part  B -  Particulars  of  the  Exchange House  for  the  proposed  drawing  arrangement

Part  C- Details  of  the proposed  arrangement

We hereby certify that -

i) the proposed  arrangement  with…………………………….  has  been  considered  by  us  carefully  taking  into  account  the means and standing  of  the  aforesaid  EH  and  we  are  fully  satisfied  about the  credentials  and  competence  of  the persons / firms / companies associated  with  the  EH.

(ii)  our  branches already  having  DD  drawing  arrangements  with  other EH(s)  and  which  are  now  proposed  to  be  covered  under  the proposed arrangement  with  the  above  EH viz………………………
have sufficient  expertise  to  handle  business  emanating  from  one more EH.

iii) We  have  put  in  place  adequate  internal  control  and risk management system which are working satisfactorily.

iv) The  particulars  given  above  are  true  and  correct  to  the  best  of  our knowledge  and  belief.

 (            )
General  Manager
Address

Place
Date

Annex-III

[Annex to A. P. (DIR Series) Circular No. 28 dated  February 06, 2008]

Statement A

Name of the Authorized Dealer Cat-I :

Full address : 

Name of Exchange House :

Particulars of operations in the account in the month of

1. Opening balance in the account (Cr/Dr) at the start of       ___________ : _______________

2. Total credits during the month                                         :_________________

3. Total debits during the month                                                     :_________________

4. Closing balance (Cr/Dr) as on__________                                       :_________________

5. Estimated value of pipeline debits                                           :_________________

(average 15 days drawings determined by progressive                  
annual debit summations or by item No.3 above,
whichever estimate is higher)

5a. The amount of actual payments made by the principal              :__________________
encashing branches/offices during the last one week
(for adding to estimated pipeline)

6. Funds held abroad as collateral by the bank or under      :__________________
DDA procedure.

7. Surplus /deficit in balances/collaterals in the account to          :__________________
cover item No.5

8. State amount of counter-value foreign currency                  : Date     Amount of foreign currency recovered
recovered from the Exchange House against each specific
foreign  credit afforded to the account during the month
corresponding to the sale of rupees made by the bank to the Exchange House

A) All payment advices received during the month from our paying branches have been taken into account for raising debits in the rupee accounts  of the Exchange House.

B) We have received confirmation from our Nostro account maintaining banks abroad for having credited counter value (foreign currency) funds to our Nostro account before crediting rupee funds to the account of the Exchange House.

C) We confirm that the rupee accounts of the Exchange Houses are conducted strictly in accordance with the guidelines issued by RBI and in terms of the relative agreements with the Exchange Houses concerned.

D) Copy of the statement has been sent to the General Manager-in-charge, Foreign correspondent relationship and department / Officer in Charge, Nostro Account of our bank.

E) We confirm that we have not received any adverse report / warning signals from the General Manager of our International Department whose accounts are maintained by us at the time of submitting the statement. 

Statement countersigned by certifying that it has been internally reviewed in the bank and the conduct of the account is considered satisfactory.

_________________________                      ______________________________________
Chief Manager of the Account                      Signature of the General Manager – in-Charge of
Maintaining Branch                                      International Division /International Operations in 
                                                                  the bank.

Annex- IV

[Annex to A. P. (DIR Series) Circular No. 28 dated  February 06, 2008]

Statement B

Consolidated statement of position of Exchange Houses’ accounts to be closed/ under closure (to be submitted by the Account maintaining office through the International Division)

________________
Chief Manager of                                   Statement countersigned certifying that
Account Maintaining                              all the accounts reported above are
Branch                                                  under the concerned Exchange Houses
                                                            have been duly suspended and closure of the accounts is being followed up.

                                                             __________________________
                                                            General Manager-in-Charge of International Division/ International Operations in the AD Cat-I

Annex- V

[Annex to A. P. (DIR Series) Circular No. 28 dated  February 06, 2008]

Statement C

Monthly statement regarding particulars of Exchange House account held at overseas branches of Indian banks (ADs Cat-I)

Name of the AD Cat-I :

Annex- VI

[Annex to A. P. (DIR Series) Circular No. 28 dated  February 06, 2008]

Statement D

Name of the AD Cat-I :___________________       No. of drawee branches : ___

Full Address : ____________________    Type of Account : ____________
                                                              RBI Approval No. and date : _______

Name of the Exchange House : ________________________  

Particulars of operations in the Account during the month of __________  

8(a) All payment advices received during the month from our paying branches have been taken into account for raising debits in the USD/ GBP accounts of Exchange House.

(b) We confirm that the USD/ GBP accounts of Exchange Houses are conducted strictly in accordance with the guidelines issued by RBI and in terms of the relative agreements with the Exchange Houses concerned.

(c) Copy of the statement has been sent to the General Manager-in-Charge foreign correspondent relationship and Department/ Office-in-Charge- Nostro account of our bank.

(d) We confirm that we have not received any adverse report/ warning signals from the General Manager of our International Department about the Exchange House whose accounts are maintained by us at the time of filing the statement to RBI.

________________
Chief Manager of                                  Statement countersigned certifying that
Account Maintaining                             it has been internally reviewed in the 
Branch                                                bank and that the conduct is considered
                                                          satisfactory.

                                                           __________________________
                                                          Signature of the General Manager-in-Charge of International Division/ International Operations of the AD Cat-I

Annex- VII

[Annex to A. P. (DIR Series) Circular No. 28 dated  February 06, 2008]

Statement E

Statement showing inflows of foreign currency through Exchange Houses
during the quarter ended_______
(Amount in US Dollars)

Notes:(a)  In columns (5) to (8) inflows during the relevant quarter may be shown for the period beginning from the month of January each year. Just below these figures, please furnish in brackets data for the corresponding period of the previous year. The data in respect of Drawing Arrangements should cover inflow of funds both through RDA and Foreign Currency Drawing Arrangement.

(b) Foreign currency should be shown in US dollars only.

(c) Furnish amount (+) or (-) accompanied by an expression in percentage
terms in  column (9).

(d)  This statement should be signed by Chief of International Banking Department / Division of the Bank at Head Office, but not less than the grade of a DGM.

(e)  Please attach separate sheets furnishing details of deviations from the
requirements as per declaration at sr.no.(v), (vi), (vii), (viii), (ix) and (x) of (C) 1 of Annex-I wherever necessary.

We hereby certify that

i)  The above information has been compiled with reference to actuals and excludes the transactions in the pipeline. 

ii) The number of branches covered has increased from _______to _______since the submission of the last statement in view of the following reasons:

iii) The growth/deceleration in the inflows of foreign currency is due to the following reasons:

iv) The outflows reported above are on account of _______________ and have the approval of RBI vide its letter No. ________________dated ________________.

v) The above accounts had all through in credit balances during the quarter under report.

vi) Funds in the accounts were sufficient to cover estimated pipeline transactions.

vii) Our overseas branches have not extended any line of credit / advances to above/ any of the above exchange houses

viii) We are regularly submitting the statements 'A', 'B',  'C',  and 'D' , as at Annex- III, Annex-IV, Annex-V and Annex-VI, respectively to the top management.

ix) We have not come across any adverse features about operations in the account of the above / any of the above exchange houses and / or the Rupee and/ or Foreign Currency Drawing arrangement with these Exchange Houses:

x) We are keeping a close watch on the means and financial standing of the above exchange houses(s) and as on the date of this report we have no adverse observations on record with us to report to the Reserve Bank.

Name of bank

Signature

Address

Name

Designation

Date