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COVID-19: RBI allows Foreign Inward Remittances from Non-Residents to PM-CARES Fund

Foreign Remittances - PM Cares Fund - tax - Taxscan

The Reserve Bank of India ( RBI ) has allowed the foreign remittances from Non-Residents to PM-CARES Fund to fight against the COVID-19 pandemic.

The RBI has directed Authorised Dealer Category – I (AD Cat – I) banks is invited to Paragraph 4 of the Master Direction – Opening and Maintenance of Rupee/Foreign currency Vostro Accounts of Non-Resident Exchange Houses dated January 01, 2016 (as amended from time to time), regarding permitted transactions under the Rupee Drawing Arrangement (RDA) channel.

In the wake of the outbreak of the novel coronavirus (COVID-19) pandemic, it has been decided in consultation with the Government of India, to permit receipt of foreign inward remittances from non-residents through non-resident exchange houses in favor of the ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund’, subject to the condition that AD Cat-I banks shall directly credit the remittances to the Fund and maintain the full details of the remitters.

The RBI said that, The Master Direction – Opening and Maintenance of Rupee/Foreign currency Vostro Accounts of Non-Resident Exchange Houses dated January 01, 2016, shall accordingly be updated to reflect the above change.

The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

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