CHAPTER
VII
NON-RESIDENT
RUPEE ACCOUNTS OF FOREIGN BANK BRANCHES AND CORRESPONDENTS
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General.
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New
Non-Resident Accounts of Banks.
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Operations
on Non-Resident Bank Accounts.
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Transfer
to the Credit of Non-Resident Bank Accounts.
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Transfer
to the Debit of Non-Resident Bank Accounts.
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Transfer
between the Accounts of Non-Resident Bank Branches or Correspondents.
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Credits
to Non-Resident Bank Accounts against Foreign Currencies purchased
by Authorised Dealers.
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Debits
to Non-Resident Bank Accounts against Currencies sold by Authorised
Dealers.
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Non-Resident
Accounts of Exchange Companies.
1.
General.
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. |