Foreign Exchange Developments
September 2009

i) Foreign Currency Account by diplomatic missions - Credit of Visa Fees

In consultation with the Government of India, it has been decided to permit diplomatic missions to credit the visa fees collected in India in Indian rupees by way of transfer from the rupee account to the accounts maintained in foreign currency by the diplomatic missions, in addition to proceeds of inward remittances received from outside India through normal banking channels.

Accordingly, AD Category –I banks have been permitted to allow the diplomatic missions to credit the visa fees collected in India in Indian rupees, by way of transfer from the rupee account, to the account maintained in foreign currency by the diplomatic missions.

[A. P. (DIR Series) Circular No. 08 dated September 14, 2009]

ii) Exim Bank’s Line of Credit of USD 17.34 million to the Government of Republic of Mozambique

Export-Import Bank of India (Exim Bank) has concluded an Agreement dated May 6, 2009 with the Government of the Republic of Mozambique making available to the latter, a Line of Credit (LOC) of USD 30 million (USD Thirty million) for financing eligible goods and services, machinery and equipment including consultancy services from India for rural electrification projects in the provinces of Gaza, Zambezia and Nampula in Mozambique.

[A. P. (DIR Series) Circular No. 09 dated September 24, 2009]