Mumbai: Reserve Bank of India today issued directions to all Category – I Authorised Dealer Banks and informed them that the financial aspects for using the Virtual Private Network (VPN) accounts obtained from National Informatics Centre (NIC) for accessing the e-Biz portal have now been finalised in consultation with Government of India, Department of Industrial Policy and Promotion (DIPP) and NIC.
RBI has drawn attention of Category – I Authorised Dealer Banks to the provisions of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations 2000, notified on May 3, 2000, and amended from time to time. Attention of AD Category – I banks has also been invited to A.P. (DIR Series) Circular of February 12, 2015, advising the enabling of reporting of Advanced Remittance Form and FCGPR Form under the FDI scheme on the e-Biz platform of the Government of India.
The VPN account will be in the name of the individual users and will be coterminous with the lifetime of the Digital Signing (Class 2) certificates (which is for a maximum period of two years) issued by Institute for Development and Research in Banking Technology (IDRBT), Hyderabad; and
the AD Category-I banks will be required to credit (through NEFT/RTGS) the payment in advance for the VPN accounts (@ Rs.9,654/- per account for a block of two years) directly to National Informatics Centre Services Inc’s (NICSI) bank account.
RBI has issued the directions under Sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999).
∗AD Category-I Bank means a bank (Scheduled Commercial, State or Urban Cooperative) which is authorized under Section 10(1) of FEMA (Foreign Exchange Management Act) to undertake all current and capital account transactions according to the directions issued by the RBI from time to time.