KARACHI: State Bank of Pakistan (SBP) on Tuesday allowed non-resident individuals holding Pakistan Origin Card (POC) to open foreign currency account.
The SBP said that as per FE circular No. 02 dated August 05, 2020, a non resident individuals is eligible to open foreign currency account.
The SBP clarified that an individual non-resident, holding Pakistan Origin Card (POC) is also eligible to open FCVA.
Accordingly, the existing Para 2 sub-para (i (a)) of the above Circular has been replaced with the following:
“Individual non-resident Pakistani and non-resident holding Pakistan Origin Card (POC).”
Consequently, all the provisions of FE Circular 2 of 2020 applicable to individual non-resident Pakistani shall also be applicable to non-resident holding Pakistan Origin Card (POC).
Moreover, in terms of Para 7, Chapter 22 of the Foreign Exchange Manual, Authorized Dealers are required to report inward remittance transactions, except for family maintenance and exports, exceeding USD 10,000/- on Form “R” to SBP.
In this regard, it is advised that instead of asking the customer to provide duly filled in Form ‘R’, the bank receiving remittances in FCVA exceeding USD 10,000, or equivalent thereof, may digitally obtain the information, required for filling Form “R”, from the customer/remitting bank, if not already available in the transaction detail, for the purpose of reporting of transactions to SBP.
Through another circular, the SBP clarified that non-resident holding POC also eligible for opening Rupee Value Account (NRVA).
Consequently, all the provisions of FE Circular 01 of 2020 applicable to non-resident Pakistani shall also be applicable to non-resident holding Pakistan Origin Card (POC).
Further, as per Para 7, Chapter 10 of the FE Manual, any person who wishes to purchase foreign exchange must lodge an application with an Authorized Dealer on Form ‘M’ for seeking approval to effect outward remittance.
However, in case of NRVA, since no approval is required to NRVA holder for repatriating the funds from his/her account, therefore Form ‘M’ may not be required for payment/ repatriation of funds from NRVA. Nonetheless, Authorized Dealers shall continue to report outward remittances under the specified purpose code through monthly foreign exchange returns to SBP as per the existing procedure.