This Master Direction consolidates the instructions issued by the Reserve Bank of India (RBI) regarding the opening, holding, and maintaining of foreign currency accounts by persons resident in India, as regulated under FEMA. The instructions also cover the maintenance of deposits and accounts between persons resident in India and those resident outside India.

Description:

• The Master Direction outlines the regulatory framework for maintaining foreign currency accounts by persons resident in India. It details the modalities for conducting foreign exchange business by Authorised Persons (such as banks) and their customers, in line with FEMA and the associated regulations.
• The direction incorporates updates from previous amendments to FEMA regulations, particularly those related to foreign currency accounts and deposit regulations.
• It also specifies the procedural instructions and lists the underlying circulars/notifications forming the basis of this Master Direction.

This updated Master Direction is critical for the regulation of foreign currency transactions and the proper maintenance of accounts for residents and non-residents in India. It ensures compliance with the necessary legal framework and provides clarity on transaction processes.