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Temporary Foreign Currency Accounts
The Reserve Bank has delegated to authorised dealers (ADs), the authority of allowing opening of temporary foreign currency accounts for organisers of international seminars, conferences, conventions, etc. Organisers who have already obtained the prior approval of the concerned administrative ministry of the Government of India for the conduct of an event, can now approach ADs with their requests for opening of temporary foreign currency accounts.

Facilities:
Credit : Credits to the account would be limited to all inward remittances in foreign currency towards registration fees payable by overseas delegates, grant, sponsorship fees and donations, received from abroad, in connection with the conference, convention, etc.
Debits would be allowed for :
(a) Payment to foreign/special invitees attending the conference, etc., on the specific      invitation of the organisers, towards travel, hotel charges, etc., and honorarium to      foreign guest speakers.
(b) Remittance towards refund of registration fees to foreign delegates and unutilised      sponsorship/grant amount, if any.
(c) Bank charges, if any.
(d) Conversion of funds into rupees.
     All other credits/debits would require the Reserve Bank's prior approval. The account should be closed immediately after the conference/event is over.

Earlier, the Reserve Bank used to consider requests from organisers of international seminars, conferences, conventions, etc., for opening temporary foreign currency accounts. These accounts are operated for the receipt of delegate fees and payment towards expenses including payment to special invitees from abroad. The Reserve Bank has with a view to facilitating expeditious disposal of such applications, delegated the authority to ADs.

Facilities to SEZ Units It has been decided to extend the following facilities to units located in SEZs.

Realisation of Export Proceeds
Now there is no time limit for realisation of exports made by units in SEZs. Earlier, units situated in SEZs had to realise and repatriate to India the full value of goods or software within a period of twelve months from the date of export.

Job Work Abroad
To promote international operations, units in SEZs have been permitted to undertake job work abroad and export goods from that country itself subject to fulfilment of the following conditions :

Processing/manufacturing charges are suitably loaded in the export price and are borne by the ultimate buyer.
The exporter has made satisfactory arrangements for realisation of full export proceeds subject to the usual GR procedure.

Receipt of Payment in Precious Metals
Gem and jewellery units in SEZs and export oriented units (EOUs) can now receive their export payments in the form of precious metals, i.e., gold/silver/platinum equivalent to the value of jewellery exported if, the sale contract provides for it and the approximate value of the precious metal is indicated in the relevant GR/SDF/PP forms.

Export Receivables against Import Payments
SEZs can now 'net off' their export receivables against import payments. Such 'netting off' would, however, be permitted subject to the following conditions :

The 'netting off' of export receivables against import payments is in respect of the same Indian entity and overseas buyer/supplier(bilateral netting). The netting may be done as on the date of balance sheet of the unit in SEZ.
The details of export of goods is documented in GR(O) forms/ DTR as the case may be while details of import of goods/ services is recorded through A1/A2 form as the case may be The relative GR/SDF forms will be treated as complete by designated AD only after the entire proceeds are adjusted/ received.
Both the transactions of sale and purchase in 'R' Returns under FET-ERS are reported separately.
) Export/import transactions with Asian Clearing Union (ACU) countries are kept outside the arrangement.
All the relevant documents are submitted to the concerned who should comply with all the regulatory requirements relating to the transactions.

Capitalisation of Import Payables
Units in SEZs can now issue equity shares to non-residents against import of capital goods, provided :
(a) The valuation is verified by a committee consisting development commissioner and the appropriate customs officials

(b) SEZ units should report the particulars of the shares issued form 'FC-GPR' to the concerned regional office of the Reserve Bank, under whose jurisdiction the SEZ falls, along with a copy of the valuation certificate. A copy of the report should forwarded to the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India, Udyog Bhavan, New Delhi-110 001.

Export Credit
Pursuant to the announcement made in the EXIM Policy March 31, 2003, that goods and services going to SEZ from domestic tariff area (DTA) would be treated as exports, the Reserve Bank has advised that supply of goods and services from DTA SEZ would be eligible for export credit facilities.

**Rate of Return of RNBC Deposits**
The minimum rate of return, which residuary non-banking companies (RNBCs) can pay to their depositors has been revised. The present and the revised minimum rates of return are :
Type of Deposit Scheme	Present Rate	Revised Rate
Daily deposit schemes	Not less than 4 per cent per annum	Not less than 3.5 per cent per annum
Deposits received in lump sum or at monthly or longer intervals	Not less than 6 per cent per annum	Not less than 5 per cent per annum

Taking into account the market conditions and changes in interest rates in the entire financial system, the rates have been revised. The revised rates are applicable to deposits accepted/ renewed by RNBCs on and from April 1, 2003.