Functions

Conduct of Foreign Exchange Transactions

SINCE the procedures have been simplified and powers have been delegated to the Authorised Persons under the FEMA, 1999, the role of the Foreign Exchange Department is minimum so far as the citizens are concerned. Persons resident in India have to simply approach the Authorised Persons to meet their foreign exchange needs. The Authorised Persons are guided by the Current Account Rules notified by the Government of India and Capital Account Regulations notified by the Reserve Bank, from time to time.

RESIDENT individuals can also make permissible capital and current account remittances or a combination of both, under the Liberalised Remittance Scheme. The facility under the Scheme is in addition to those already available for private travel, business travel, studies, medical treatment, etc., as described in Schedule - III of Foreign Exchange Management (Current Account Transactions) Rules, 2000.

IN relation to the needs of the common person, the Foreign Exchange Department of the Reserve Bank, thus, has a limited role as it now considers only those applications which require prior approval of the Reserve Bank under Foreign Exchange Management (Current Account Transactions) Rules and (Capital Account Transactions) Regulations.

Compounding Authority for FEMA Contraventions

AS the Compounding Authority, the Reserve Bank has put in place a procedure for compounding of contraventions under the FEMA, since February 2005. The procedure envisages making an application for compounding with the prescribed fee of Rs. 5,000 along with relevant facts and supporting documents, to the Reserve Bank. The Reserve Bank disposes of the applications within 180 days from the date of receipt of the application.

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Time Limits for Disposal of Applications

THE Foreign Exchange Department of the Reserve Bank is committed to dispose of the applications received within a certain time limit. The time limits for disposal of various applications are:

Type of application	Maximum number of working days for disposal of application
	Central Office	Regional Office
FOREIGN INVESTMENT IN INDIA
Refund of advance remittance	–	5
Transfer of shares (requiring prior RBI approval)	30	–
FC-GPR to be taken on record	–	30
Pledge of shares	30	–
Allotment of Unique Identification Number (UIN)	–	7
Issue of licence for Branch / Liaison Office	30	–
INDIAN INVESTMENT ABROAD
Investment in Overseas Joint Ventures and WOS (not covered by automatic route)	25	–
Disinvestment of shares in Overseas Joint Ventures / Subsidiaries	15	–
Allotment of Unique Identification Number (UIN)	15	–
Other overseas Investment under approval route	25	--
EXPORTS
Permission for waiving GR Form formalities for exports	–	5
Set Off / Write Off	–	5
Export receivables / payables outside ACU mechanism	–	5
Refund / retention of advance	–	5
IMPORTS
Direct imports	–	5
Third country / Merchanting trade / Warehousing	–	5
Import receivables / payables outside ACU mechanism	–	5
Items under Schedule III of Current Account Transaction (CAT) Rules – release of exchange beyond the stipulated limits
(i) Travel related purposes	–	5
(ii) Non-travel related purposes	–	5
OTHERS
Issue / Renewal of Money Changer’s licence	–	30
Compounding of contraventions of FEMA	180 (calendar days)	180 (calendar days)
ECBD related transactions :
Trade credit under approval route	5	-
Post servicing of automatic cases	10	-
ECB / FCCB under approval route upto to USD 100 million	10	-
ECB / FCCB under approval route above USD 100 million	20	-