Authorized Dealers in
Investment Banks, DFIs
Authorized to accept
Foreign Currency deposits,
of Authorized Dealers is invited to F.E.
Circular No.54 dated the 7th June, 1992 on
the subject noted above.
Queries are being received whether fee is payable on the
amounts of foreign currency deposits only or also on the
amounts of interest. It is clarified that the fee @ 3 %
will be payable on the full amount of forward cover obtained
not with standing whether it is in respect of the amount
of deposit or for both the amount of principal and interest.
It is also clarified that the prescribed fee will be charged
in respect of the existing deposits at the time of renewal
of the forward covers. However, in cases of the deposits
brought up to 30th June, 1992 for longer tenures
at the fixed interest rate, no fee will be charged
for the entire tenure of the deposit.