All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
FCBCs
AND NDRP
Attention
of the Authorized Dealers in invited to the instructions
contained in paragraph 6 of F.E.
Circular No. 12 dated the 29th May, 1998
regarding enchantment, interalia, of Five Years Foreign
Currency Bearer Certificates at the special rate. It has
now been decided by the Government that such Certificates
may be allowed to be encashed even earlier than the expiry
of the minimum holding period of two years without any penalty,
and where these are encashed after the prescribed holding
period of two years, the penalty @ 1.5% per annum for the
unexpired period, as provided in rule 8 of the Five Years
Foreign Currency Bearer Certificates Rules, shall not be
charged. It is further clarified that no profit shall be
payable for a broken period, if a certificate is encashed
before the next six monthly period.
2. Attention
is also invited to sub-paragraph (viii) of Para-1 F.E. Circular No. 17 dated the 6th June,
1998 wherein it has been clarified that the restrictions
placed on receipt of funds in Foreign Currency Accounts
do not apply to the funds received under National Debt.
Retirement Programme. It is further clarified that both
the original amounts received as Qarz-e-Hasna or for kept
as profit bearing deposits and the profits thereon, shall
be payable in foreign exchange on the due dates.