Saturday, February 13, 2016

Compilation of R-Returns: Reporting under FETERS



Web based data submission by AD banks

The following modifications shall be effected in the guidelines for submission of data under the FETERS from 1st fortnight of April 2016:

i)        The present email-based submission will be replaced by web-portal based data submission.

ii)      Nodal offices of banks have to access the web-portal https://bop.rbi.org.in with the RBI-provided login-name and password.

iii)    Banks may download RBI-provided validator template from this portal on their computer and perform off-line check of their FETERS data-file for error, if any, before its submission on the portal.

iv)    On uploading validated files, banks will get acknowledgment. They can also revise the purpose codes for transaction submitted earlier, if required, which will be authenticated by RBI in the system.

v)      Banks may report (a) addition of AD code for their bank and (b) update AD category, which will be incorporated in the AD-master database by RBI after due authentication.

vi)    With the discontinuation of ENC.TXT and SCH3to6.TXT files in FETERS, the purpose codes P0105 [Export bills (in respect of goods) sent on collection – other than Nepal and Bhutan] and P0107 [Realisation of NPD export bills (full value of bill to be reported) – other than Nepal and Bhutan] have become defunct and are, therefore, discontinued.

Revision in Form A2

Further, in-order to streamline the reporting of the transactions relating to the Liberalised
Remittance Scheme (LRS) in FETERS and On-line Return Filing System (ORFS), it has been decided that transactions relating to LRS may be reported under respective FETERS purpose codes (e.g. travel, medical treatment, purchase of immovable property, studies abroad, maintenance of close relatives; etc.) instead of reporting collectively under the purpose code S0023. The purpose code S0023 would be revised as follows to enable reporting of ‘Opening of foreign currency account abroad with a bank’:
Purpose Code
Current Description
Revised Description
S0023
Remittance Scheme (  LRS) for Individuals
Opening of foreign currency account abroad with a bank

i.          For facilitating the existing monthly reporting of LRS transactions under ORFS, AD banks may use the following purpose codes only:
Sr No
Items under LRS
Corresponding FETTERS purpose codes if under LRS
1
Opening of Foreign currency account abroad
S0023
2
Purchase of Immovable property
S0005
3
Investment in equity, debt, JV, WoS, ESOPs, IDRs
S0001,  S0002,  S0003,  S0004,  S0021, S0022
4
Gift
S1302
5
Donations
S1303
6
Travel(business, pilgrimage, medical treatment, education, employment, personal)
S0301, S0303, S0304 ,S0305 & S0306
7
Maintenance of close relatives
S1301
8
Medical Treatment
S1108
9
Studies abroad
S1107
10
Emigration
        S1307
11
‘Others’ such as loan to NRI close relatives and health insurance
S0011, S0603


ii.         AD banks should also ensure that the data pertaining to LRS transactions reported by them in FETERS tallies with that reported by them in ORFS.

iii.        The Form A2 is also being revised by introducing a check-box for LRS transactions in the relevant block.

iv.         Further, the ‘Application cum Declaration for purchase of foreign exchange under the Liberalised Remittance Scheme of USD 250,000’ has been clubbed with Form A2 inorder to reduce multiplicity of forms to be filled in by the customers.

Online submission of Form A2 by the remitter

Authorised Dealer banks, offering internet banking facilities to their customers may allow online submission of Form A2. Besides, they may also enable uploading/submission of documents wherever required, to establish the permissibility of the remittances. To start with, remittances on the basis of online submission alone will be available for transactions with an upper limit of USD 25,000 (or its equivalent) for individuals and USD 100,000 (or its equivalent) for corporates. Authorised Dealer banks are advised to frame appropriate guidelines for customer interface. It may be further noted that reporting of transactions in FETERS shall continue, as hitherto, by the Authorised Dealer banks.

Based on RBI Circular dt 11/02/16. Please visit www.rbi.org.in for any further clarification if required…..       Poppy