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CHAPTER VII NON-RESIDENT RUPEE ACCOUNTS OF FOREIGN BANK BRANCHES AND CORRESPONDENTS
Rupee
accounts of all banks' overseas branches or correspondents are treated as
non-resident accounts. The accounts of different branches of the same bank
situated in different countries must be identified separately and the
accounts of each branch or group of branches in one country should be
designated as accounts of that country. 2.
New Non-Resident Accounts of Banks. Authorised
Dealers may open new non-resident Rupee accounts in the names of their
overseas branches or correspondents without the prior approval of the State
Bank. 3.
Operations on Non-Resident Bank Accounts. Drawings
can be made on the non-resident Rupee accounts of overseas banks by their
branches and correspondents located in any other country irrespective of
their monetary area. 4.
Transfer to the Credit of Non-Resident Bank Accounts. Any
payment for credit to non-resident Rupee account of any bank's overseas
branch or correspondent constitutes an outward remittance and is equivalent
to a sale of the appropriate foreign currency. Such payments may be made by
the Authorised Dealers against approved transactions covered by 'T-1', 'I'
or 'M' forms approved by the State Bank or by the Authorised Dealers on
behalf of the State Bank as permissible. 5.
Transfer to the Debit of Non-Resident Bank Accounts. Payment
in Rupees to the debit of non-resident Rupee accounts of banks' overseas
branches and correspondents constitutes an inward remittance and is
equivalent to purchase of the appropriate foreign currency. Such payments
may be made freely by the Authorised Dealers. 6.
Transfer between the Accounts of Non-Resident Bank Branches or
Correspondents. Transfers
between non-resident bank accounts may be freely allowed by the Authorised
Dealers irrespective of their monetary area. In respect of such transfers
credits should be covered by form 'M' in which the name and address of the
bank whose account is debited and the name of the Authorised Dealer with
whom that account is maintained should be given. The form may be approved by
the Authorised Dealer on behalf of the State Bank. No form need to be
completed covering debits, details of which should be reported to the State
Bank in the manner prescribed in Chapter XXII. 7.
Credits to Non-Resident Bank Accounts against Foreign Currencies
purchased by Authorised Dealers. Authorised
Dealers may freely purchase foreign currencies from banks' overseas branches
and correspondents and credit the Rupee equivalent to their non-resident
Rupee accounts. 8.
Debits to Non-Resident Bank Accounts against Currencies sold by
Authorised Dealers. Prior
approval of the State Bank would
be required for the sale of foreign currencies to non-resident bank branches
and correspondents against credit balance available in their non-resident
Rupee account. 9.
Non-Resident Accounts of Exchange Companies. Non-resident Exchange Companies may, in addition to opening a foreign currency account under F.E. Circular No. 25 of 1998, open non-resident rupee account for the purpose of effecting payment of remittances made by overseas Pakistanis. Such accounts will be fed by sale of foreign currency by the account holder. Authorised Dealers are permitted to enter into drawing arrangements with the exchange companies subject to the condition that they will obtain guarantee of a reputable bank equivalent to one month's aggregate rupee drawings, and the replenishment from the exchange companies should be called within 4 to 5 days of the drawings. |
