Notification No.FEMA.140/2005-RB

Dated October 31, 2005

Foreign Exchange Management (Deposit) (Second Amendment) Regulations, 2005

In exercise of the powers conferred by clause (f) of Sub-section (3) of Section 6, Sub-Section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Deposit) Regulations, 2000 (Notification No. FEMA.5/2000-RB dated May 3, 2000) namely:-

(i) These Regulations may be called the Foreign Exchange Management (Deposit) (Second Amendment) Regulations, 2005.

(ii) They shall come into force from July 26, 2005.@

In the Foreign Exchange Management (Deposit) Regulations, 2000, in Schedule 2,

i. for paragraph 2, the following shall be substituted:-

'2. Designated Currencies : Deposit of funds in the account may be accepted in such permissible currencies as may be designated by the Reserve Bank from time to time'.

ii. for paragraph 3, the following shall be substituted:-

'3. Type of account : These accounts may be opened only in the form of term deposit with maturity of such period as may be specified by the Reserve Bank from time to time'.

(Vinay Baijal)
Chief General Manager

(i) The Principal Regulations were published in the Official Gazette vide G.S.R.No.388 (E) dated May 5, 2000 in Part II, Section 3, Sub-Section (i) and subsequently amended vide No.G.S.R.262(E) dated April 9, 2002, No.G.S.R. 577(E) dated August 19, 2002, No.G.S.R. 855(E) dated December 31, 2002, No.G.S.R.494(E) dated August 4, 2004 and No.G.S.R. 221(E) dated April 7, 2005:

(ii) @ It is clarified that no person will be adversely affected as a result of retrospective effect being given to such regulations.