Section 5 in The Foreign Exchange Management (Deposit) Regulations, 2000
5. Acceptance of deposits by an authorised dealer/authorised bank from persons resident outside India. - (1) An authorised dealer in India may accept deposit--
(i)under the Non-Resident (External) Account Scheme (NRE account), specified in Schedule 1, from a non-resident Indian [* * *];(ii)under the Foreign Currency (Non-Resident) Account Banks Scheme, (FCNR-B account), specified in Schedule 2, from a non-resident Indian [* * *] [ Certain words omitted by G.S.R. 836(E), dated 3.10.2003 (w.e.f. 23.10.2003).];(iii)under the Non-Resident (Ordinary) Account Scheme, (NRO account), specified in Schedule 3, from any person resident outside India;[* * *] [ Clauses (iv) and (v) omitted by G.S.R. 262(E), dated 1.3.2002 (w.e.f. 1.4.2002).](2)Without prejudice to sub-regulation (1), deposits under NRE, NRO and NRSR Account Schemes referred to in [clauses (i) and (iii)] [Substituted by G.S.R. 262(E), dated 1.3.2002 (w.e.f. 1.4.2002).] of that sub--regulation, may also be accepted by an authorised bank, in accordance with the provisions contained in the respective Schedules.[(2-A) Non-resident acquirers may, subject to the terms and conditions specified in Schedule 8, open, hold and maintain Escrow Account and Special Account with Authorised Dealers in India without prior approval of the Reserve Bank, for acquisition/transfer of shares/convertible debentures through open offers/delisting/exist offers, subject to the relevant Security Exchange Board of India (SAST) Regulations or any other applicable Security Exchange Board of India Regulations/provisions of the Companies Act, 1956.] [Inserted by G.S.R. 91(E), dated 18.9.2007 (w.r.e.f. 24.5.2007).](2B)[ Resident or Non-resident acquirers may, subject to the terms and conditions specified in Schedule 9, open, hold and maintain Escrow Account with Authorised Dealers in India without prior approval of the Reserve Bank, towards payment of share purchase consideration. Resident or Non-resident acquirers may, subject to the terms and conditions specified in Schedule 9, open and maintain, without prior approval of the Reserve Bank, Escrow accounts for securities with SEBI authorised Depository Participants. These facilities will be applicable for both issue of fresh shares to the non-residents as well as transfer of shares from / to the non-residents.] [Substituted by Notification No. G.S.R. 822(E), dated 11.4.2012 (w.e.f. 8.5.2000)][(3)(a) On and from 1st April, 2002-- [Added by G.S.R. 262(E), dated 1.3.2002 (w.e.f. 1.4.2000). ](i)no deposit, whether by way of renewal of existing deposit or otherwise, shall be accepted under the Non-Resident (Non--Repatriable) Rupee Account Scheme (NRNR Account) or the Non-Resident (Special) Rupee Account Scheme (NRSR Account);(ii)existing deposits under the NRNR Account Scheme may be continued only up to the date of maturity;(iii)on maturity of the existing deposit under the NRNR Account Scheme, the maturity proceeds shall be credited to the account holder's Non-Resident (External) Account (NRE Account), after giving notice to the account holder;(b)(i)the existing account in the form of a term deposit of the NRSR Account Scheme may be continued till the date of maturity;(ii)on maturity of the existing term deposit under the NRSR Account Scheme, the maturity proceeds shall be credited to the account-holder's Non--Resident (Ordinary) Account (NRO Account);(iii)existing NRSR account, other than a term deposit, shall not be continued after 30th September, 2002, and may at the option of the account holder; be dosed or the balance therein credited to his NRO account on or before that date.Explanation. - For the purpose of this sub-regulation, "existing deposit" or "existing account" means a deposit or an account held on 31st March, 2002.](4)[. A Qualified Foreign Investor (QFI) may open a single non-interest bearing Rupee Account with Authorised Dealer in India without the prior approval of the Reserve Bank, for the limited purpose of routing the receipt and payment for transactions relating to purchase and sale of eligible securities as stipulated by the Reserve Bank, from time to time, subject to the following conditions:(a)The account shall be funded by inward remittance through normal banking channel and by credit of the sale/redemption/buyback proceeds (net of taxes) and on account of interest payment/dividend on the eligible securities for QFIs.(b)The funds in this account shall be utilized for purchase of eligible securities for QFIs or for remittance (net of taxes) outside India.(c)The Qualified Depository Participants (as per the extant SEBI regulations) will operate such non-interest bearing. Rupee Accounts on behalf of the QFIs and at the instructions of the QFIs.]
