Ozg FEMA Consultant
Phone # 09811415831-37-61-72-84-92-94
(a) The application for obtaining permission to enter into Rupee / Foreign
Currency Drawing Arrangements with Exchange Houses should be completed and
submitted in the prescribed format (given below), to the Chief General Manager,
Foreign Exchange Department, Forex Markets Division, Reserve Bank of India,
Central Office, Mumbai- 400001. The application should be signed by the General
Manager (or an officer of equivalent rank), International Banking Division/
Foreign Department of the applicant AD Category - I bank.
(b) Documentation :
AD Category - I banks should submit the following
documents along with the application:
(i) Certified copy of the license (English version)
issued by the Central Bank/ any other Supervisory Authority of the country
where the Exchange House is situated.
(ii) Certified copy/ ies of license(s) issued
by Municipal Authorities and / or any other Government regulatory/ controlling
authority in the country of the Exchange House. (applicable to the Exchange
Houses in U.A.E.)
(iii)
A Certificate from a Chartered Accountant, regarding compliance with anti money
laundering norms in the home country of the Exchange House.
(iv)
Certified copies of confidential
opinion/ report recorded by (a) Embassy of India in the country concerned and
(b) two bankers of the Exchange House.
(v) Audited Balance Sheets and Profit and Loss
Account Statements of the Exchange House for the previous three years.
(vi) Copy of the Board Resolution of the AD Category
- I bank for entering into the arrangement.
(vii) Copy of letter from the Exchange House
regarding the proposal to enter into the Rupee/ Foreign Currency Drawing
Arrangement along-with the provision of collateral, whereever necessary.
Part A- Particulars of the
applicant bank and
its existing arrangement(s), if any
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1.
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Name
of the applicant bank
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2.
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Existing arrangements(s)
(i) Name of Exchange House (EH)
(ii) Since
(iii) No. of drawee branches
(iv)
Business turnover for the previous three calendar years
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3(a)
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Details
of branches having
multiple EH drawing arrangements
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3(b)
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Furnish
comments with regard to
adequacy of internal control
systems put in place
at those branches. (Attach a sheet if
necessary)
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4.
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Financial losses sustained if any during
last five years
(April-March)
(i) Year
(ii) Name of the EH
(iii) Amount of loss
(iv) Particulars of loss
(v) Ref. Nos. and dates lodged with RBI and
RBI’s permission to write off
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5.
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Financial
disputes if any
with EH(s) pending
settlement
(i)
Name of EH
(ii) Expected amount of loss
(iii) Particulars of loss
(iv) Ref. No. & dated of report lodged
with RBI
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6.
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Furnish
an EH-wise summary
of the major irregularities observed
in the existing drawing
arrangements during inspections by
Internal Auditors, RBI
Inspectors as also
Overseas Auditors indicating
the corrective measures initiated by
the bank
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Part B
- Particulars of
the Exchange House for
the proposed drawing
arrangement
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1(a)
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Name
and address of
the Exchange House with
which the bank
proposes to enter into RDA
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(b)
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Date
of establishment of
the EH
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(c)
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Furnish
details of other
Group companies of EH
viz. name, management control, financial means
and standing, etc.
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2(a)
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Whether
the EH has
operative RDA with
any
other bank in
India?
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(b)
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If
yes, state the
name/s of the
bank/s
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3.
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Furnish
details of the
management structure of
the EH
(a) Status of EH (company, firm, joint-ventures,
etc.)
(b) With
whom the management
vests
(c) Name, nationality
and line of
business of the promoters
of the EH
(d) Capital
holding pattern
(e)
Whether the applicant bank
will have any
investment in EH? Furnish
complete details
(f)
Whether the applicant
bank will have
any
role in
management of EH.?
Furnish details
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4.
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Profit
earned/loss sustained by
the EH during the previous
three calendar years
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5.
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Particulars
of license issued
by the Central
Bank/ Supervisory Authority of
the country concerned :
a) License
no
b) Date
of issue
c) Validity
period
d) Special conditions,
if any
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6.
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Particulars
of licenses issued
by Municipal Authorities
and/or any other
Government regulatory/
controlling authority (Applicable to
EHs in UAE)
a)
Licence No
b)
Date of issue
c)
Validity period
d) Special conditions
if any
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7.
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Confidential opinion
in brief recorded
by
a) Embassy
of India in
the country
b) Bankers
of the EH
i)
--------------------------------------
Name of
the banker
ii)
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Name of
the banker
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8.
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Is
the applicant bank
fully satisfied about
a)
the competence of
the company/firm/people managing
the EH
b)
the financial strength
of the shareholders of the
EH
c)the
financial strength of the
EH
d)the
internal control systems
operating in EH with
regard to issue of
drafts?
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9.
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Furnish
details of collateral arrangements negotiated
with the EH
(viz.. amount of deposit,
bank guarantee, etc.) and
the justification thereof
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Part
C- Details of the proposed
arrangement
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1.
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Details/description of
proposed arrangement
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2(a)
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Reasons
for entering into
RDA
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(b)
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Projections
of business turnover (quantify monthly projections)
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3.
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The
procedure under which
the proposed
RDA
will be conducted (DDA/Non-DDA/Speed)
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4.
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Name
and address of
the account maintaining Branch
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5.
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No
of drawee branches
to be included
in the proposed RDA
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6.
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Whether
EH is prepared
to provide additional collateral cover equivalent to
one month’s projected drawings
?(Applicable to EHs
which have not
completed three years
of its operations)
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7.
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Any
other information which
the bank wishes
to furnish
in support of
this application
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We hereby certify that -
i) the proposed arrangement
with…………………………….
has
been considered by
us carefully taking
into account the means and
standing of the
aforesaid EH and we are
fully satisfied about the credentials
and competence of the
persons / firms / companies associated
with the EH.
ii) our
branches already having DD
drawing arrangements with
other EH(s) and which
are now proposed
to be covered
under the proposed arrangement with
the above EH viz………………………. have sufficient expertise
to handle business
emanating from one more EH.
iii) We
have put in
place adequate internal
control and risk management
system, which are working satisfactorily.
iv) The
particulars given above
are true and
correct to the
best of our knowledge
and belief.
( )
Place General Manager
Date Address
Date Address
Ozg FEMA Consultant
Phone # 09811415831-37-61-72-84-92-94
