Attention of the Authorized Dealers is invited to Para 35 (iii) & Para 36, Chapter 12 of FE Manual – 2018 which set out instructions regarding opening and maintenance of exporters’ special foreign currency accounts.
2. In this regard, it is reiterated that the above accounts can only be opened by genuine exporters, fed with prescribed portion of export proceeds and utilized by the exporters for permissible/legitimate purposes related to exports only. Therefore, the balances held in such accounts cannot be utilized for any other purpose.
3. Authorized Dealers must follow their standard operating procedures for opening and maintenance of such accounts and ensure compliance of all related KYC and CDD requirements/ foreign exchange regulations.
4. In case of non-compliance of the above instructions, the State Bank may initiate regulatory action under Section 23K of the Foreign Exchange Regulation Act, 1947 against the respective Authorized Dealer.
5. Authorized Dealers are advised to ensure meticulous compliance of the above instructions.