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', '1' 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.

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.