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CHAPTER
VII
NON-RESIDENT RUPEE ACCOUNTS OF FOREIGN BANK BRANCHES AND CORRESPONDENTS
1. General.
Rupee accounts of all banks' overseas branches or
correspondents are treated as non-resident accounts. The accounts of different branches of
the same bank situated in different countries must be identified separately and the
accounts of each branch or group of branches in one country should be designated as
accounts of that country.
2. New Non-Resident Accounts of Banks.
Authorised Dealers may open new non-resident Rupee accounts in the names of their overseas
branches or correspondents without the prior approval of the State Bank.
3. Operations on Non-Resident Bank Accounts.
Drawings can be made on the non-resident Rupee accounts of overseas banks by their
branches and correspondents located in any other country irrespective of their monetary
area.
4. Transfer to the Credit of Non-Resident
Bank Accounts.
Any payment for credit to non-resident Rupee account of any bank's overseas branch or
correspondent constitutes an outward remittance and is equivalent to a sale of the
appropriate foreign currency. Such payments may be made by the Authorised Dealers against
approved transactions covered by 'T-1', 'I' or 'M' forms approved by the State Bank or by
the Authorised Dealers on behalf of the State Bank as permissible.
5. Transfer to the Debit of Non-Resident Bank
Accounts.
Payment in Rupees to the debit of non-resident Rupee accounts of banks' overseas branches
and correspondents constitutes an inward remittance and is equivalent to purchase of the
appropriate foreign currency. Such payments may be made freely by the Authorised Dealers.
6. Transfer between the Accounts of Non-Resident
Bank Branches or Correspondents.
Transfers between non-resident bank accounts may be freely allowed by the Authorised
Dealers irrespective of their monetary area. In respect of such transfers credits should
be covered by form 'M' in which the name and address of the bank whose account is debited
and the name of the Authorised Dealer with whom that account is maintained should be
given. The form may be approved by the Authorised Dealer on behalf of the State Bank. No
form need to be completed covering debits, details of which should be reported to the
State Bank in the manner prescribed in Chapter XXII.
7. Credits to Non-Resident Bank Accounts against
Foreign Currencies purchased by Authorised Dealers.
Authorised Dealers may freely purchase foreign
currencies from banks' overseas branches and correspondents and credit the Rupee
equivalent to their non-resident Rupee accounts.
8. Debits to Non-Resident Bank Accounts
against Currencies sold by Authorised Dealers.
Prior approval of the State Bank would be required for the sale of foreign
currencies to non-resident bank branches and correspondents against credit balance
available in their non-resident Rupee account.
9. Non-Resident Accounts of Exchange Companies.
Non-resident Exchange Companies may, in addition to opening a foreign currency account
under F.E. Circular No. 25 of 1998, open non-resident rupee account for the purpose of
effecting payment of remittances made by overseas Pakistanis. Such accounts will be fed by
sale of foreign currency by the account holder. Authorised Dealers are permitted to enter
into drawing arrangements with the exchange companies subject to the condition that they
will obtain guarantee of a reputable bank equivalent to one month's aggregate rupee
drawings, and the replenishment from the exchange companies should be called within 4 to 5
days of the drawings.
