Section 5(1) in The Foreign Exchange Management [Withdrawal Of General Permission To Overseas Corporate Bodies (Ocbs)] Regulations, 2003
(1)(a)No fresh account by whatever name called shall be opened or maintained in the name of an OCB;(b)the regulations specified in column 1 of the Schedule shall be amended as mentioned in column 2;(c)an existing NRE (Saving and Current) Account held or maintained in the name of an OCB shall be closed and balances repatriated forthwith;(d)an existing NRO (Saving) Account held or maintained in the name of an OCB shall be closed and balances transferred to non-interest bearing NRO (Current) Account. The disposal of balance in such NRO (Current) Account shall require specific approval of the Reserve Bank except in the following cases:--(i)all local payments in rupees;(ii)remittance outside India of current income in India of the account holder net of applicable taxes;(e)an existing NRE (Recurring/Fixed Deposit) Account or FCNR (B) Account held in the name of an OCB, may be continued till original maturity and on maturity the proceeds shall be repatriated forthwith;(f)an existing NRO (Recurring/Fixed) Account held or maintained in the name of an OCB may be continued till original maturity and on maturity the proceeds shall be credited to NRO (Current) Account;(g)no facility of any nature whatsoever shall be granted on the security of an account held in the name of an OCB;(h)any loan or other facility granted against the security of a Recurring/Fixed Deposit Account held in the name of an OCB, shall not be renewed and shall be closed by adjustment of the proceeds on maturity of the deposit.
