REPORTING UNDER FETERS (Foreign Exchange Transactions Electronic Reporting System)

By | May 9, 2016

COMPILATION OF R-RETURNS  FOR REPORTING UNDER FETERS

A.P. (DIR SERIES 2015-16) CIRCULAR NO.50, DATED 11-2-2016

Attention of Authorised Dealer (Category I) banks is invited to A.P.(DIR Series) Circular No.84 dated February 29, 2012 giving guidelines for compilation of R-Returns for reporting under the Foreign Exchange Transactions Electronic Reporting System (FETERS), A.P.(DIR Series) Circular No.101 dated February 4, 2014 on Export of Goods and Services: Export Data Processing and Monitoring System (EDPMS) for facilitating banks to submitexport-related information through EDPMS platform and A.P.(DIR Series) Circular No.15 dated July 28, 2014which discontinued separate reporting of information in ENC (Export Bills Negotiated / sent for collection) for acknowledgement of receipt of export documents and Sch.3 to 6 (realization of export proceeds) under FETERS.

Web based data submission by AD banks

2. In order to enhance the security-level in data submission and further improve data quality, the following modifications shall be effected in the guidelines for submission of data under the FETERS from 1st fortnight of April 2016 (i.e., reporting of those transactions which take place from April 1, 2016):

(i) The present email-based submission will be replaced by web-portal based data submission. However, there are no changes in periodicity, file-layout, delimiter, consistency checks, and inter-relationship among BOP6.TXT and QE.TXT files as well as their naming convention.
(ii) Nodal offices of banks have to access the web-portal https://bop.rbi.org.in with the RBI-provided login-name and password, to submit data (Contact and other details are given in the above-mentioned Circular dated February 29, 2012).
(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. Both Java-based and Excel-based validators are provided: Use of Java-based validator is advised for larger files. This portal also gives relevant master files (e.g., country, currency, AD code, purpose code masters).
(iv) On uploading validated files, banks will get acknowledgment. They can view the data-files submitted by them during the previous two fortnights, with download facility. 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

3. 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 underthe purpose code S0023. This would help AD banks in classification of transactions for similar activity undersingle purpose code. Therefore, the purpose code S0023 would be revised as follows to enable reporting of ‘Opening of foreign currency account abroad with a bank’:

Purpose Code Description as per the A.P.(DIR Series) Circular No.84 dated February 29, 2012 and in Form A2 Revised Description
S0023 Remittances made under Liberalised 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 FETERS purpose codes, if transaction is identified under LRS
1 Opening of foreign currency account abroad with a bank under LRS 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 (as per Annex) by introducing a check-box for LRS transactions in the relevant block as follows:
Sr. No. Whether under LRS (Yes/No) Purpose Code Description
As per the Annex
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

4. With a view to facilitating miscellaneous remittances and reducing paperwork associated with payment transactions, it has been decided that 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, if and as may be necessary, to establish the permissibility of the remittances under the extant rules or regulations framed under the Foreign Exchange Management Act, 1999 (FEMA). Remittances that do not require any documentation (e.g. certain transactions under the LRS) may be put through on the basis of the Form A2 alone. 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. It may be noted that the remittance will be subject to satisfaction of the Authorised Dealer banks as laid down in Section 10 (5) of FEMA. Accordingly, Authorised Dealer banks are advised to frame appropriate guidelines for customer interface personnel to ensure ease of transactions for the customers within the ambit of the statutory/regulatory provisions. It may be further noted that reporting of transactions in FETERS shall continue, as hitherto, by the Authorised Dealer banks.

5. Appropriate changes in technology and/or operating procedure may be carried out by Authorised dealer banks immediately and compliance in this regard furnished to RBI.

6. The changes introduced through this circular may be implemented with immediate effect and in any case not later than April 1, 2016.

7. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents.

8. 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.

ANNEX

FORM A2

(To be completed by the applicant)

FORM A2 AD Code No.___________________________
Form No. __________________________
(To be filled in by the Authorised Dealer)
(For payments other than imports and remittances covering intermediary  trade)
Currency____ Amount ___Equivalent to Rs. ____
(To be completed by the Authorised Dealer)

Application for Remittance Abroad

I/We _____________________________________________________________________

(Name of applicant remitter)

PAN No. _________________________________________________________________

(For remittances exceeding USD 25,000 and for all capital account transactions)

Address _________________________________________________________________

authorize

_________________________________________________________________

(Name of AD branch)

To debit my Savings Bank/ Current/ RFC/ EEFC A/c. No. _______________________ together with their charges and

* (a) Issue a draft : Beneficiary’s Name _______________________
Address _______________________
*(b) Effect the foreign exchange remittance directly —
(1) Beneficiary’s Name _______________________
(2) Name and address of the bank _______________________
(3) Account No. _______________________
* (c) Issue travelers cheques for _______________________
* (d) Issue foreign currency notes for Amount (specify currency) _______________________

* (Strike out whichever is not applicable) for the purpose/s indicated below

Sr. No. Whether under LRS (Yes/No) Purpose Code Description
As per the Annex

(Remitter should put a tick (√) against an appropriate purpose code. In case of doubt/ difficulty, the AD bank should be consulted).

Declaration

(Under FEMA 1999)

1. # I, ………………. …………(Name), hereby declare that the total amount of foreign exchange purchased from or remitted through, all sources in India during the financial year including this application is within the overall limit of the Liberalised Remittance Scheme prescribed by the Reserve Bank of India and certify that the source of funds for making the said remittance belongs to me and the foreign exchange will not be used for prohibited purposes.

Details of the remittances made/transactions effected under the Liberalised Remittance Scheme in the current financial year (April- March) ..……..

Sl. No. Date Amount Name and address of AD branch/FFMC through which the transaction has been effected

2. # The total amount of foreign exchange purchased from or remitted through, all sources in India during this calendar year including this application is within USD____________________ (USD ____________________ ) the annual limit prescribed by Reserve Bank of India for the said purpose.

3. # Foreign exchange purchased from you is for the purpose indicated above.

# (Strike out whichever is not applicable)

Signature of the applicant

(Name)

Date:

Certificate by the Authorised Dealer

This is to certify that the remittance is not being made by/to ineligible entities and that the remittance is in conformity with the instructions issued by the Reserve Bank from time to time under the Scheme.

Name and designation of the authorised official:

 

Stamp and seal

Signature:

Date:

Place:

Purpose Codes for Reporting under FETERS

A. Payment Purposes (for use in BOP file)

Gr. No. Purpose Group Name Purpose Code Description
00 Capital Account S0017 Acquisition of non-produced non-financial assets (Purchase of intangible assets like patents, copyrights, trademarks etc., land acquired by government, use of natural resources) –
S0019 Acquisition of non-produced non-financial assets (Purchase of intangible assets like patents, copyrights, trademarks etc., use of natural resources) – Non-Government
S0026 Capital transfers (Guarantees payments, Investment Grand given by the government/international organisation, exceptionally large Non-life insurance claims) – Government
S0027 Capital transfers (Guarantees payments, Investment Grand given by the Non-government, exceptionally large Non-life insurance claims) – Non-Government
S0099 Other capital payments not included elsewhere
Financial Account
Foreign Direct Investments S0003 Indian Direct investment abroad (in branches & wholly owned subsidiaries) in equity Shares
S0004 Indian Direct investment abroad (in subsidiaries and associates) in debt instruments
S0005 Indian investment abroad – in real estate
S0006 Repatriation of Foreign Direct Investment made by overseas Investors in India – in equity shares
S0007 Repatriation of Foreign Direct Investment in made by overseas Investors India – in debt instruments
S0008 Repatriation of Foreign Direct Investment made by overseas Investors in India – in real estate
Foreign Portfolio Investments S0001 Indian Portfolio investment abroad – in equity shares
S0002 Indian Portfolio investment abroad – in debt instruments
S0009 Repatriation of Foreign Portfolio Investment made by overseas Investors in India – in equity shares
S0010 Repatriation of Foreign Portfolio Investment made by overseas Investors in India – in debt instruments
External Commercial Borrowings S0011 Loans extended to Non-Residents
S0012 Repayment of long & medium term loans with original maturity above one year received from Non-Residents
Short term Loans S0013 Repayment of short term loans with original maturity up to one year received from Non-Residents
Banking Capital S0014 Repatriation of Non-Resident Deposits (FCNR(B)/NR(E)RA
S0015 Repayment of loans & overdrafts taken by ADs on their own
S0016 Sale of a foreign currency against another foreign currency
Financial Derivatives and Others S0020 Payments made on account of margin payments, premium payment and settlement amount etc. under Financial derivative
S0021 Payments made on account of sale of share under Employee stock option
S0022 Investment in Indian Depositories Receipts (IDRs)
S0023 Opening of foreign currency account abroad with a bank
External Assistance S0024 External Assistance extended by India. e.g. Loans and advances extended by India to Foreign governments under
S0025 Repayments made on account of External Assistance received by India.
01 Imports S0101 Advance payment against imports made to countries other than Nepal and Bhutan
S0102 Payment towards imports- settlement of invoice other than Nepal and Bhutan
S0103 Imports by diplomatic missions other than Nepal and Bhutan
S0104 Intermediary trade/transit trade, i.e., third country export passing through India
S0108 Goods acquired under merchanting / Payment against import leg of merchanting trade*
S0109 Payments made for Imports from Nepal and Bhutan, if any
02 Transport S 0201 Payments for surplus freight/passenger fare by foreign shipping companies operating in India
S0202 Payment for operating expenses of Indian shipping companies operating abroad
S0203 Freight on imports – Shipping companies
S0204 Freight on exports – Shipping companies
S0205 Operational leasing/Rental of Vessels (with crew) –Shipping companies
S0206 Booking of passages abroad – Shipping companies
S0207 Payments for surplus freight/passenger fare by foreign Airlines companies operating in India
S0208 Operating expenses of Indian Airlines companies operating
S0209 Freight on imports – Airlines companies
S0210 Freight on exports – Airlines companies
S0211 Operational leasing / Rental of Vessels (with crew) – Airline companies
S0212 Booking of passages abroad – Airlines companies
S0214 Payments on account of stevedoring, demurrage, port handling charges etc.(Shipping companies)
S0215 Payments on account of stevedoring, demurrage, port handling charges, etc.(Airlines companies)
S0216 Payments for Passenger – Shipping companies
S0217 Other payments by Shipping companies
S0218 Payments for Passenger – Airlines companies
S0219 Other Payments by Airlines companies
S0220 Payments on account of freight under other modes of transport (Internal Waterways, Roadways, Railways, Pipeline transports and others)
S0221 Payments on account of passenger fare under other modes of transport (Internal Waterways, Roadways, Railways, Pipeline transports and others)
S0222 Postal & Courier services by Air
S0223 Postal & Courier services by Sea
S0224 Postal & Courier services by others
03 Travel S0301 Business travel.
S0303 Travel for pilgrimage
S0304 Travel for medical treatment
S0305 Travel for education (including fees, hostel expenses etc.)
S0306 Other travel (including holiday trips and payments for settling international credit cards transactions)
05 Construction Services S0501 Construction of projects abroad by Indian companies including import of goods at project site abroad
S0502 cost of construction etc. of projects executed by foreign companies in India.
06 Insurance and Pension Services S0601 Life Insurance premium except term insurance
S0602 Freight insurance – relating to import & export of goods
S0603 Other general insurance premium including reinsurance premium; and term life insurance premium
S0605 Auxiliary services including commission on insurance
S0607 Insurance claim Settlement of non-life insurance; and life insurance (only term insurance)
S0608 Life Insurance Claim Settlements
S0609 Standardised guarantee services
S0610 Premium for pension funds
S0611 Periodic pension entitlements e.g. monthly quarterly or yearly payments of pension amounts by Indian Pension Fund
S0612 Invoking of s tandardised guarantees
07 Financial Services S0701 Financial intermediation, except investment banking – Bank charges, collection charges, LC charges etc.
S0702 Investment banking – brokerage, under writing commission
S0703 Auxiliary services – charges on operation & regulatory fees, custodial services, depository services etc.
08 Telecommunic ation, Computer & Information Services S0801 Hardware consultancy/implementation
S0802 Software consultancy / implementation
S0803 Data base, data processing charges
S0804 Repair and maintenance of computer and software
S0805 News agency services
S0806 Other information services- Subscription to newspapers,
S0807 Off-site software imports
S0808 Telecommunication services including electronic mail services and voice mail services
S0809 Satellite services including space shuttle and rockets etc.
09 Charges for the use of intellectual property n.i.e S0901 Franchises services
S0902 Payment for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks and industrial processes etc.
10 Other Business Services S1002 Trade related services – commission on exports / imports
S1003 Operational leasing services (other than financial leasing) without operating crew, including charter hire- Airlines companies
S1004 Legal services
S1005 Accounting, auditing, book-keeping services
S1006 Business and management consultancy and public relations
S1007 Advertising, trade fair service
S1008 Research & Development services
S1009 Architectural services
S1010 Agricultural services like protection against insects & disease, increasing of harvest yields, forestry services.
S1011 Payments for maintenance of offices abroad
S1013 Environmental Services
S1014 Engineering Services
S1015 Tax consulting services
S1016 Market research and public opinion polling service
S1017 Publishing and printing services
S1018 Mining services like on–site processing services analysis of
S1020 Commission agent services
S1021 Wholesale and retailing trade services.
S1022 Operational leasing services (other than financial leasing) without operating crew, including charter hire- Shipping
S1023 Other Technical Services including scientific/space services.
S1099 Other services not included elsewhere
11 Personal, Cultural & Recreational services S1101 Audio-visual and related services like Motion picture and video tape production, distribution and projection services.
S1103 Radio and television production, distribution and transmission services
S1104 Entertainment services
S1105 Museums, library and archival services
S1106 Recreation and sporting activities services
S1107 Education (e.g. fees for correspondence courses abroad)
S1108 Health Service (payment towards services received from hospitals, doctors, nurses, paramedical and similar services etc. rendered remotely or on-site)
S1109 Other Personal, Cultural & Recreational services
12 Govt. not included elsewhere (G.n.i.e.) S1201 Maintenance of Indian embassies abroad
S1202 Remittances by foreign embassies in India
13 Secondary Income S1301 Remittance for family maintenance and savings
S1302 Remittance towards personal gifts and donations
S1303 Remittance towards donations to religious and charitable institutions abroad
S1304 Remittance towards grants and donations to other governments and charitable institutions established by the
S1305 Contributions/ donations by the Government to international institutions
S1306 Remittance towards payment / refund of taxes.
S1307 Outflows on account of migrant transfers including personal
14 Primary Income S 1401 Compensation of employees
S1402 Remittance towards interest on Non-Resident deposits (FCNR(B)/NR(E)RA, etc.)
S1403 Remittance towards interest on loans from Non-Residents (ST/MT/LT loans) e.g. External Commercial Borrowings, Trade Credits, etc.
S1405 Remittance towards interest payment by ADs on their own account (to VOSTRO a/c holders or the OD on NOSTRO a/c.)
S1408 Remittance of profit by FDI enterprises in India (by branches of foreign companies including bank branches)
S1409 Remittance of dividends by FDI enterprises in India (other than branches) on equity and investment fund shares
S1410 Payment of interest by FDI enterprises in India to their Parent company abroad.
S1411 Remittance of interest income on account of Portfolio Investment in India
S1412 Remittance of dividends on account of Portfolio Investment in India on equity and investment fund shares
15 Others S1501 Refunds / rebates / reduction in invoice value on account of
S1502 Reversal of wrong entries, refunds of amount remitted for non-exports
S1503 Payments by residents for international bidding
S1504 Notional sales when export bills negotiated/ purchased/ discounted are dishonored/ crystallised/ cancelled and reversed from suspense account
S1505 Deemed Imports (exports between SEZ, EPZs and Domestic tariff areas)
16 Maintenance and repair services n.i.e S1601 Payments on account of maintenance and repair services rendered for Vessels, ships, boats, warships, etc.
S1602 Payments on account of maintenance and repair services rendered for aircrafts, space shuttles, rockets, military aircrafts,
17 Manufacturing services (goods for processing) S1701 Payments for processing of goods

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