The
Head Offices/Principal Offices of all
Authorized Dealers In Foreign Exchange
Dear
Sirs,
Borrowings by Individual Foreign
Nationals
In terms of para 5 Chapter XIX of FE Manual (8th Edition-2002),
Authorised Dealers have general permission to grant Rupee
loans/overdrafts to foreign nationals upto the extent of
their two months salary. Requests for advances in excess
of this are, however, referred to
the State Bank.
2.
Now, with a view to further liberalizing the foreign exchange
regime, it has been decided to allow Authorised Dealers
to grant Rupee loans/overdrafts to foreign nationals upto
the extent of their requirements observing the relevant
Prudential Regulations. Consequently, Para 5, Chapter XIX
of FE Manual (8th Edition-2002) may be replaced with the
following:
Quote
‘Authorised
Dealers have general permission to grant Rupee loans/overdrafts
to foreign nationals upto the extent of their requirement
subject to the observance of relevant Prudential Regulations’.
Unquote
Please
bring the above to the notice of your branches and other
constituents.