Master Direction for Non-resident Exchange Houses
This Master Direction outlines the guidelines for opening and maintaining Rupee/Foreign Currency Vostro accounts of non-resident exchange houses.
General Instructions: The accounts should not be used for cross-border outward remittances from India.
Operations in Rupee Vostro Accounts: The accounts should only be used for permitted transactions, which exclude donations/contributions to charitable institutions.
Permitted Transactions: The accounts can be used for inward remittances, payment of import bills, and other permitted transactions under the Foreign Exchange Management Act, 1999.
Important Note: Cash disbursement of remittances received is not allowed under Rupee/Foreign Currency Drawing Arrangements.
This Master Direction is effective from January 1, 2016, and has been updated several times, with the latest update being on December 22, 2022.
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