MANU/APDR/0028/2016

Ministry : Reserve Bank of India

Department/Board : RBI A.P. DIR (Series)

Circular No. : A. P. (DIR Series) Circular No. 66
                   RBI/2015-2016/386

Date : 28.04.2016

Notification/ Circulars Referred : A. P. (DIR Series) Circular No. 28 MANU/APDR/0009/2008;A. P. (DIR Series) Circular No. 16 MANU/APDR/0079/2009

Citing Reference:
A. P. (DIR Series) Circular No. 28 MANU/APDR/0009/2008  Referred

A. P. (DIR Series) Circular No. 16 MANU/APDR/0079/2009  Referred

To,

All Authorised Dealer Category-I Banks

Madam / Sir,

Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-Resident Exchange Houses: Rupee Drawing Arrangement

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to paragraph (C) 3 vii of the A. P. (DIR Series) Circular No. 28 [A. P. (FL/RL Series) Circular No. 02] dated February 06, 2008 and paragraph No. 3(h) and 5C of Master Direction No.2 dated January 1, 2016 on Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-Resident Exchange Houses: Rupee Drawing Arrangement regarding collateral cover under Speed Remittance Procedure which inter-alia stipulated that the Exchange Houses shall keep with the AD Category - I bank a cash deposit in any convertible foreign currency equivalent to three days' estimated drawings on which market related interest rate may be paid. The Exchange House can also keep the said collateral in the form of guarantees from a bank of international repute. The adequacy of collateral should be reviewed by the AD Category - I bank at regular intervals. These requirements were relaxed vide A. P. (DIR Series) Circular No. 16 [A. P. (FL/RL Series) Circular No. 3] dated November 27, 2009 and the collateral requirement was brought down to one day's estimated drawings.

2. To further streamline the remittance arrangement under the Spee........