AD Cat-II Must Approach RBI for One Time Approval to Operate Nostro Accounts

[RBI Circular No. 109 dated 18^th April 2012]

Sub: Authorised Dealer Category II – Permission for additional activity and opening of Nostro account

Attention of Authorised Persons is invited to Para 3 of A. P. (DIR Series) Circular No. 104 dated April 4, 2012 on the captioned subject.

2. Authorised Dealer Category-II entities desirous of opening Nostro accounts may approach the Reserve Bank for a one time approval to open and operate Nostro accounts.

3. All other instructions contained in the A.P. (DIR Series) Circular No. 104 dated April 4, 2012 shall remain unchanged.

4. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.

5. The directions contained in this Circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals if any, required under any other law.