Professional Documents
Culture Documents
Payments To Ibarclay Fdindia
Payments To Ibarclay Fdindia
Payments To Ibarclay Fdindia
Contents
INR and Other currencies 2
Introduction 2
Page 1 of 18
INR and Other currencies For all payments remitted to India, the information must be
included are as follow:
Introduction
• A statement describing the Purpose of Payment. This is a
The information contained within this currency guide is designed
mandatory Indian regulatory requirement; failure to provide the
to help you to understand the regulatory requirements when
Purpose of Payment will result in the payment being delayed
sending payments to beneficiaries in India.
or rejected. [Please refer to Payment formatting section for
For domestic currency control reasons the Reserve Bank of detailed requirement for certain specific type of payments]
India (RBI) has strict rules regarding the information that must • Ordering Customer’s name, address and bank details
be provided within the payment instruction in INR or any other (where ordering customer is the party or company instructing
currency in favour of a beneficiary account at an Indian beneficiary the payment) – Field 50 of MT103
bank. If you do not have all of the information required, the payment • If the Ordering Institution is instructing the payment on behalf
will be delayed or rejected. Please use this guide in conjunction with of another party (the underlying remitter), the full name and
the SWIFT formatting User Guide and ensure address of the underlying remitter must be provided. In addition,
all guidelines laid out are followed carefully. the Ordering Institution must provide their Account number,
and if available their SWIFTBIC in the appropriate fields. – Field
Indian Rupee (INR) Currency Restriction 50 of MT103
• Speculation on the INR currency is not permitted. • Indian beneficiary bank details including branch code
• The free flow of foreign exchange funds into and out of India (11 character IFSC code). The IFSC code should be provided
is prevented by the Foreign Exchange Management Act and in the same location you would provide the beneficiary’s
Reserve Bank of India guidelines. National Clearing Code – NCC. A full list of IFSC codes can
• INR payments are not permitted to any accounts held with be found on the Reserve Bank of India website. Information
a beneficiary bank located outside India. should be provided in Field 57 of MT103
• There is no straight-through-processing (STP) in Indian banks • For Export type of payments, the beneficiary contact details
for payments sent from overseas banks. (Full name, telephone number and full address) should be
• Payments can be made to Indian nationals resident in India provided to avoid delay– Field 59 of MT103
for bona fide purposes. • There is additional payment formatting requirements
• No tax payments can be made in INR as Barclays is not for particular payment types. Please refer to the Additional
authorised to process such transactions. Payment Formatting Requirements section below.
• For payments related to Foreign Direct Investment, it is Given the strict regulation by the RBI (Reserve Bank of India),
essential that the remitter is aware of the permissible sectors we strongly advise that you or your client to contact the
under the automatic or approval route and the corresponding beneficiary and ensure all of the relevant paperwork and approval
‘% of equity’ and FDI cap ceilings. The following link can be are in place before sending the payment to India.
referred for further information https://www.rbi.org.in/scripts/
BS_ViewMasCirculardetails.aspx?id=9006 Additional Payment Formatting requirement
– Business activities which are Prohibited for Foreign
As a general rule you should format your payment fields in line
Investments in India – Annexure 2
with the SWIFT formatting User Guide, where more specific
– Business sectors and percentage caps for automatic route
formatting and information is required, we have detailed the
and approval route – Annexure 1
relevant payment information below. Please ensure that you adhere
FDI payments under approval route will need additional
to these additional guidelines when making payment to India.
compliance submissions by the beneficiary before the payment
is processed and hence all FDI payments must be accompanied In addition, please be aware that the RBI (Reserve Bank of India)
mandatorily with beneficiary contact details along with has an extensive list of payment types which are classified as
purpose of payment. Please find additional specific FDI payment Export of Services payments. Please refer to the list at the end
formatting within the table in this guide. of this document to confirm if your payment falls within the
category of an export payment.
INR Payment Information
To ensure you and your client’s payment being processed efficiently,
The required information must be included in the correct fields
Field 70 of MT103 is used to capture majority of the additional
otherwise your payment risks being rejected. At times the
information required. However, for certain payment types, a MT199
beneficiary bank may ask for further evidences in support of the
message is required from you as account holder of the underlying
information provided before applying the funds. The required
remitter to provide KYC information to fulfil local regulatory
payment information/evidences and/or formatting rules include:
reporting requirement by the RBI.
Page 2 of 18
Transfer to Non Resident External Rupee accounts maintained by NRIs in Indian Rupees – NRE/NRO
Personal gifts
Inward remittance from Indian non-residents towards family maintenance and savings
Page 3 of 18
Donations to religious and charitable institutions in India
• Beneficiary must always be a legal entity not an individual Line 1: /PURPOSE OF PAYMENT
Line 2: /FCRA No <XXXXXXXXXR>
• Purpose of Payment (e.g. “Purpose is charity”)
Example: Field 70
• The Payment Beneficiary’s FCRA number Line 1: /PURPOSE IS CHARITY
(as an example: 231660134R). The Beneficiary’s FCRA Line 2: /FCRA No 231660134R
number can be confirmed at the Ministry of Home Affairs
website (http://fcraonline.nic.in/fc8_statewise.aspx).
• Purpose of Payment (e.g. “Loan for personal use”) Line 1: /PURPOSE OF PAYMENT
Line 2: /BENE RELN TO REM <RELATIONSHIP>
• Remitter must always be an individual Line 3: /LOAN MAT IS> 1 YEAR; INTEREST FREE
Line 4: /LOAN AMOUNT <CURRENCY><LOAN AMOUNT>
• Indian Residents can borrow from a NRI and PIO relatives
up to USD 250k provided that: Example: Field 70
– The minimum maturity of the loan is 1 year Line 1: /LOAN FOR PERSONAL USE
– The loan is interest free Line 2: /BENE RELN TO REM BROTHER
Line 3: /LOAN MAT>1 YEAR INTEREST FREE
• The relationship between lender and borrower is as defined Line 4: /LOAN AMOUNT USD200k
as “relative” in section 6 of the Companies Act 1956.
Page 4 of 18
The NRI remitter is repaying a loan that was taken from the beneficiary who is resident Indian and relative
Property Purchase
Page 5 of 18
Foreign direct investment – Fresh equity issuance
• Note: Barclays can only support FDI (Foreign Direct Line 1: /PURPOSE OF PAYMENT
Investment) payments if the Payment Remitter and the Line 2: /INVESTEE: <NAME>
Investor are the same party. Line 3: /BENE CONTACT: <NAME>, <TEL. NO.>, <EMAIL>
(Continue text on the following line if needed)
• Purpose of Payment (e.g. “Purchase of fresh equity”,
“Capital infusion”, or “subscription to equity shares”) Example: Field 70
Line 1: /PURPOSE IS PURCHASE OF FRESH EQUITY
• Payment Beneficiary Contact Details: Name, Telephone Line 2: /INVESTEE ABC LTD
Number, and Email Address Line 3: /BENE CONTACT ASHOK PATEL +912222
Line 4: /222222 ASHOK.PATEL(AT) XYZ.COM
• Name of investee company
The additional information required by you should be sent within
• Beneficiary will be contacted to provide the relevant MT199 together with your payment instruction.
compliance submissions before funds can be credited
to their accounts
Page 6 of 18
Foreign direct investment – Transfer of existing shares
• Note: Barclays can only support FDI (Foreign Direct Line 1: /FDI/ PURCHASE OF <XX> SHARES OF <PARTY OF
Investment) payments if the Payment Remitter and the SHARES BEING SOLD> FROM <SELLER>
Investor are the same party. Line 2: /BENE CONTACT: <NAME>, <TEL. NO.>, <EMAIL>
(Continue text on the following line if needed)
• Purpose of Payment (e.g. “Transfer of shares” or “Purchase
of 100 shares of ABC Ltd from Ashok Patel”) Example: Field 70
Line 1: / PURCHASE OF 200 SHARES OF ABC
• Payment Beneficiary (Seller) Contact Details: Name, Line 2: /LTD FROM ASHOK PATEL
Telephone Number, and Email Address Line 3: /BENE CONTACT ASHOK PATEL +912222
Line 4: /222222 ASHOK.PATEL(AT) XYZ.COM
• Name of the company’s shares which are being sold
The additional information required by you should be sent within
• Beneficiary will be contacted to provide the relevant MT199 together with your payment instruction.
compliance submissions before funds can be credited
to their accounts
Page 7 of 18
Foreign direct investment in India in debt securities (fully, compulsorily and mandatorily convertible debentures)
• Note: Barclays can only support FDI (Foreign Direct SWIFT Format Requirement
Investment) payments if the Payment Remitter and the Line 1: /FDI/PURPOSE OF PAYMENT
Investor are the same party. Line 2: /INVESTEE: <NAME>
Line 3: /BENE CONTACT: <NAME>, <TEL. NO.>, <EMAIL>
• Purpose of Payment (e.g. “FDI in debt securities”) (Continue text on the following line if needed)
Page 8 of 18
Foreign direct investment – All other types not explicitly stated above
• Note: Barclays can only support FDI (Foreign Direct Line 1: /FDI/PURPOSE OF PAYMENT
Investment) payments if the Payment Remitter and the Line 2: /INVESTEE: <NAME>
Investor are the same party. Line 3: /BENE CONTACT: <NAME>, <TEL. NO.>, <EMAIL>
(Continue text on the following line if needed)
• Purpose of Payment (e.g. “FDI in real estate”)
Example: Field 70
• Payment Beneficiary Contact Details: Name, Telephone Line 1: /FDI/FDI IN REAL ESTATE
Number, and Email Address Line 2: /INVESTEE: ABC LTD
Line 3: /BENE CONTACT ASHOK PATEL +912222
• Name of investee company Line 4: /222222 ASHOK.PATEL(AT) XYZ.COM
• Beneficiary will be contacted to provide the relevant The additional information required by you should be sent within
compliance submissions before funds can be credited MT199 together with your payment instruction.
to their accounts
Page 9 of 18
Receipts on account of sale of share under Employee stock option
Long & medium terms loans with original maturity above 1 year from non-resident to India (External Commercial Borrowings)
Page 10 of 18
Inward remittance for maintenance of offices in India
• Purpose of Payment (Office maintenance and Bene is liaison Line 1: /PURPOSE OF PAYMENT
office/Branch office/Project office) Line 2: /UIN: <XXXXXXX>
• UIN allotted by the RBI (Reserve Bank of India). A UIN is a Example: Field 70
12 digit alpha numeric string. Line 1: /OFFICE MAINTENANCE EXPENSES
Line 2: /UIN: AHLO12345678
Some examples of UIN are AHLO06000001/ BGLO07000207A.
The Branch / Liaison offices established with the Reserve Bank’s
approval will be allotted a Unique Identification Number (UIN)
(www.rbi.org.in/scripts/Fema.aspx)
Compensation of employees
• Purpose of Payment (e.g. “Salary for month of Jan”, Line 1: /PURPOSE OF PAYMENT
“Remuneration for employee” or “Compensation
for employee”) Example: Field 70
Line 1: /SALARY FOR MONTH OF JAN
• Payment Remitter is always the employer
Page 11 of 18
Export of Goods - Payments towards exports post shipment– Other than Nepal and Bhutan
Export of Goods – Advance payment towards exports– other than Nepal and Bhutan
Page 12 of 18
Export of Services
Note: The RBI (Reserve Bank of India) has defined a clear list Line 1: /PURPOSE OF PAYMENT
of services which are defined as Export of Services. Please Line 2: /INVOICE/TRANSACTION REF NO <XXXX>
refer to the table below to confirm if your payment falls within Line 3: /INVOICE/TRANSACTION DATE <XXXX>
this category
Example: Field 70
• Purpose of Payment (e.g. “Software consulting services” Line 1: /LEGAL SERVICES
or “Legal Services”) Line 2: /INVOICE REF NO 1233456
Line 3: /INVOICE DATE 13/05/2015
• Invoice/Transaction Reference Number(s)
• Invoice/Transaction Date
Page 13 of 18
Export of Service Payments
The following payment types are categorised as Export of Service payments by the local regulations in India and payments must follow
the Export payment formatting covered in the above table.
Business Services
• Professional services Legal services
• Accounting , auditing and bookkeeping services
• Taxation services
• Architectural services
• Engineering services
• Integrated engineering services
• Urban planning and landscape architectural services
• Medical and dental services
• Veterinary services
• Services provided by midwives, nurses, physiotherapists
and paramedical personnel
• Others
Communication Services Postal services
Courier services
Others
Retailing services
Franchising
Others
Adult education
Page 15 of 18
Sector Sub-Sectors Examples
Environmental Services Sewage services
Refuse disposal services
Others
Financial Services All Insurance and • Life, accident and health insurance services
Insurance-related services • Non-life insurance services
• Reinsurance and retrocession
• Services auxiliary to insurance
(including brokering and agency services)
Other
Page 16 of 18
Sector Sub-Sectors Examples
Health-Related Hospital services
And Social Services
(Not Listed Previously) Other human health services
Social services
Other
Others
Recreational, Cultural Entertainment services (including theatre, live bands and circus services)
And Sporting Services
(Other Than Audio- New agency services
Visual Services)
Libraries, archives, museums and other cultural services
Others
Space Transport
Page 17 of 18
Sector Sub-Sectors Examples
Road Transport Services • Passenger transportation
• Freight transportation
• Rental of Commercial vehicles with operator
• Maintenance and repair of road transport equipment
• Supporting services for road transport services
Reference
• Relatives” - Extract of Section 6 of the Companies Act, 1956 defines a “relative” as;
“a person shall be deemed to be a relative of another if, and only if –
– they are members of a Hindu undivided family; or
– they are husband and wife; or
– they are related to the other in the following manner; Father, Mother (including step-mother), Son (including step-son),
Son’s wife, Daughter (including step-daughter), Father’s father, Father’s mother, Mother’s mother, Mother’s father, Son’s son,
Son’s son’s wife, Son’s daughter, Son’s daughter’s husband, Daughter’s husband, Daughter’s son, Daughter’s son’s wife,
Daughter’s daughter, Daughter’s daughter’s husband, Brother (including step-brother), Brother’s wife, Sister (including step
sister), Sister’s husband”
• ECBs (External Commercial Borrowing) refer to commercial loans in the form of bank loans, securitized instruments
(e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares),
buyers’ credit, suppliers’ credit availed of from non-resident lenders with a minimum average maturity of 3 years.
• NOC – No Objection Certificate
• NRI – Non-Resident Indian
• NRO – (Non-resident Ordinary Rupee account)
• NRSR – (Non-resident Special Rupee account)
• OCI – Overseas Citizen of India
• PIO – Person of Indian Origin
The information in this guide is correct at June2015. It is intended as a general guide only. We recommend you obtain your own independent tax and legal advice tailored to your
individual circumstances.
You must ensure that both you and the person receiving the payment comply with any local and international laws in relation to the payment, including regulatory restrictions, exchange
controls and tax obligations. You have sole responsibility for the management of your legal obligations and tax affairs, including making any applicable filings and payments and complying
with any applicable laws and regulations, including in relation to taxation.
Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority
and the Prudential Regulation Authority. Registered Number is 1026167 and its registered office is 1 Churchill Place, London E14 5HP. Item Ref: BM408200. June 2015.
Page 18 of 18