Reinsurance brokers allowed to open foreign currency a/cs

Last Updated: Fri, Apr 12, 2019 10:03 hrs
FILE PHOTO: Arrangement of various world currencies including Chinese Yuan, US Dollar, Euro, British Pound

New Delhi: The Reserve Bank of India on Thursday allowed reinsurance brokers to open non-interest bearing foreign currency accounts with banks for undertaking transactions.

Earlier, the Insurance Regulatory and Development Authority of India (IRDAI) had issued notification and then RBI issued Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 - Opening of Foreign Currency Accounts by Re-insurance and Composite Insurance brokers.

"The extant Regulations regarding opening of foreign currency accounts in India by persons resident in India have since been reviewed in consultation with the Government of India. As notified earlier, reinsurance and composite insurance brokers registered with IRDA may open and maintain non-interest bearing foreign currency accounts with an AD bank in India for the purpose of undertaking transactions in the ordinary course of their business," RBI said.

Foreign currency account would refer to a bank account held or maintained in currency other than the currency of India or Nepal or Bhutan.