30 June 2009
Is this necessary to get declaration signed by Managing director in case o foreign payments. Is there any circular amended to supercede circular 759.
20 July 2024
In India, the requirement for a declaration signed by the Managing Director (MD) for foreign remittances depends on the nature and purpose of the remittance. Here’s an overview based on current regulations:
### Declaration Requirement for Foreign Remittances:
1. **Form A2 and Declaration**: For certain types of foreign remittances, particularly those exceeding a specified limit or for specific purposes, authorized dealers (banks) may require Form A2 along with a declaration signed by the MD or an authorized signatory of the company. This declaration typically confirms the purpose and nature of the remittance.
2. **Circular 759**: Circular 759 issued by the Reserve Bank of India (RBI) pertains to the submission of Form A2 for various types of current account transactions, including foreign remittances. It outlines the documentation requirements and procedures for such transactions.
3. **Amendments or Circulars**: The RBI periodically issues amendments or new circulars to update regulations related to foreign remittances. These amendments may specify changes in documentation requirements or procedural aspects.
### Compliance and Documentation:
- **Authorized Signatory**: The declaration required for foreign remittances can typically be signed by an authorized signatory of the company. This signatory may include the MD, a director, or another authorized officer depending on the company’s internal delegation of authority.
- **Purpose and Nature**: The declaration affirms the purpose of the remittance, ensuring compliance with foreign exchange regulations and preventing misuse or unauthorized transfers.
### Checking Updated Circulars:
To ascertain whether there have been any recent amendments superseding Circular 759 or introducing new requirements:
- **RBI Website**: Visit the Reserve Bank of India’s official website and check under the 'Notifications' or 'Circulars' section for the latest updates related to foreign exchange transactions.
- **Authorized Dealer (Bank)**: Consult with the authorized dealer through which the remittance is being processed. They should have the most current information on documentation requirements and procedural changes.
### Conclusion:
While a declaration signed by the MD may be required for certain foreign remittances as per current regulations and Circular 759, it’s important to stay updated with any amendments or new circulars issued by the RBI. Compliance with these regulations ensures smooth processing of foreign exchange transactions and adherence to legal requirements.
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