All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
PRIVATE
FOREIGN CURRENCY ACCOUNTS
Please
refer to the instructions issued vide F.E. Circular No 12
of 1998 in terms of which there are restrictions on withdrawal
in foreign currency from foreign currency accounts (FCAs)
except as permitted vide F.E. Circulars issued subsequently.
It has been decided to allow persons holding such accounts
to transfer their accounts from their existing bank to another
bank without involving movement of foreign currency. Such
transfers will be made for the entire balance of the concerned
accounts alongwith accrued interest, if any, and partial
transfer of funds is not permissible. Upon the transfer
of such accounts, the existing accounts with the transferring
bank will stand closed.
2.
Persons wishing to transfer their accounts shall approach
their bankers giving the name of the bank branch where they
wish the account to be transferred, alongwith a letter from
such bank confirming that it is prepared to open the account.
The Head Office/branch of the bank, which had surrendered
the inward remittances to the State Bank of Pakistan, Karachi/Lahore
(as applicable) giving a list of all such requests received
during a day showing the names of the accounts holders,
balances required to be transferred, the names of the banks
where the accounts are being transferred and particulars
of the forward contract, if booked with the State Bank,
the rate at which forward contract was booked and the amount
to be notionally "lifted" against each forward
contract. The State Bank will cancel the forward contract
for the applicable amount and pay the rupee differential
between the booked rate and the rate currently applicable
to encashment of FCA's. The forward cover fee, already recovered,
would also be refunded for the un-expired period of the
contract. The bank which submits the request for transfer
of the account will transfer the rupee equivalent of the
foreign currency amount to the bank where the account is
being transferred. The transferee bank may book fresh forward
contract, if it so wishes, at the current applicable rate,
and pay the applicable forward cover fee, provided that
the forward cover is obtained from the State Bank of Pakistan
simultaneously i.e. on the date of transfer of such account
from the transferring bank. The transferee bank will treat
the account as subject to the same restrictions, as applicable
to the account held by the transferring bank. At the time
of transfering balances, the transferring bank will need
to ensure that the status and title of the account with
the transferee bank remain unchanged.
3.
Please note that the above general permission does not apply
to SWAP (i.e. F.E. 45) deposits, which are being regulated
by separate special arrangements.