Foreign Exchange Management (Foreign Currency Accounts by a
Person Resident in India) (Amendment) Regulations, 2001

Notification No. FEMA 34 /2001-RB.

Dated: January 22, 2001

In exercise of the powers conferred by clause (b) of Section 9 and clause (e) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in partial modification of its Notification No.FEMA 10/2000-RB dated May 3, 2000, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, namely:-

1. These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Third Amendment) Regulations, 2001.
2. They shall come into force with immediate effect.

In the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2000, in Regulation 7, after sub-regulation (7), the following sub-regulation shall be added, namely:-

'(8) A national of a foreign state resident in India being an employee of a foreign company on deputation to the office/branch/subsidiary/joint venture in India of such foreign company may open, hold and maintain a foreign currency account with a bank outside India and received the salary payable to him for the services rendered to the office/branch/subsidiary/joint venture in India of such foreign company, by credit to such account;

Provided that,

1. the amount to be credited to such account shall not exceed 75 per cent of the salary accrued to or received by such person from the foreign company;
2. the remaining salary shall be paid in rupees in India;
3. Income tax chargeable under the Income Tax Act 1961 is paid on the entire salary as accrued in India.'

(D.P. Sarda)
Executive Director