Master Circular on Memorandum of Instructions
The Reserve Bank of India (RBI) has issued a master circular on the memorandum of instructions for opening and maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses.
The circular provides guidelines for the operation of these accounts, including general instructions and permitted transactions.
Key Points:
The accounts should not be used for cross-border outward remittances from India.
Donations/contributions to charitable institutions should not be routed through Exchange Houses.
No cash disbursement of remittances received is allowed under Rupee/Foreign Currency Drawing Arrangements.
The circular also outlines procedures for Rupee Drawing Arrangement and collateral coverage.
Annexures I to VI provide additional information and formats for reporting and documentation.
Chat with the Master Circular: