Project Offices — Foreign Currency Accounts in India RBI clarifies
At present, foreign companies having Project Offices in India are permitted to open only one foreign currency account for each project.
With a view to avoid currency exposures, many foreign companies have been approaching the Reserve Bank for permission to open more than one foreign currency account, usually in their home currency and another in US Dollar.
RBI has decided to liberalise the procedure and allow AD Category–I banks to open an additional foreign currency account for each Project Office (established under the general/specific approval of Reserve Bank) subject to the same terms and conditions as applicable to the existing foreign currency account provided that both the foreign currency accounts are maintained with the same AD Category–I bank. The other conditions shall continue.
RBI Circular NO. 02/ RBI ., Dated: July 31, 2008