RBI/2013-14/131
A.P. (DIR Series) Circular No.8

July 11, 2013

To

All Category - I Authorised Dealer Banks

Madam / Sir,

Overseas Investments – Shares of SWIFT

Attention of the Authorised Dealers (AD) is invited to Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 notified by the Reserve Bank vide Notification No. FEMA 120/RB-2004 dated July 07, 2004 and as amended from time to time.

2. As per the extant FEMA provisions, the proposal of acquisition of the shares of Society for Worldwide Interbank Financial Telecommunication (SWIFT), Belgium by the resident bank is considered by the Reserve Bank on case to case basis under the approval route.

3. On a review, it has now been decided to grant general permission to a bank in India, being licensed by the Reserve Bank under the provisions of the Banking Regulation Act, 1949, to acquire the shares of SWIFT as per the by-laws of SWIFT, provided the bank has been permitted by the Reserve Bank for admission to the ‘SWIFT User’s Group in India’ as member.

4. This modification shall come into force with immediate effect. Necessary amendment to the Notification No. FEMA.120/RB-2004 dated July 07, 2004 has been issued vide Notification No. FEMA.271/RB-2013 dated March 19, 2013 and notified vide dated G.S.R.No.345 (E) dated 29.05.2013 (copy enclosed).

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

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

Yours faithfully,

(C. D. Srinivasan)
Chief General Manager