The foreign nationals on employment in India can maintain accounts in their individual names in the form of SB, Current Account and Term deposit. However, foreign companies are allowed to open and maintain current accounts in the banks. Nevertheless, they may be allowed to keep their surplus money in short-term deposits with a maturity not exceeding three months.
While opening such domestic rupee account of foreign nationals (both individuals and the companies), need to submit a declaration form QA 22 to the authorised dealer bank, where they open and maintain the bank account.In QA 22 form, the prospective account holder of the bank has to declare his/her major sources of rupee funds which he/she is going to deposit in the account. Further, the proposed account holder has to undertake that he/she would submit form A4 in respect of any payment into the account which is not directly connected with his /her employment or profession or occupation or business. The prospective account holder shall also undertake in QA 22 that he/she will not make available of any foreign currency to anyone in India which may be at their disposal against reimbursement in India in rupees or otherwise. The QA 22 form submitted for opening an account of the foreign company shall be signed by all the authorised signatories (irrespective of their nationality) of the account in form QA 22.
Exemptions to submit form QA 22:
In the cases of diplomats attached to foreign Embassies, Legations, Consulates and Trade Representations and other foreign Government officials, in India and (ii) officials of the United Nations Organisations and its subsidiary/affiliate bodies, no need to submit QA 22 forms to open a resident account in India. The above exemption is applicable only to those officials working in the above offices. The accounts maintained in the names of members of families of such officials are required to furnish form QA 22 undertakings. In addition to diplomats and officials stated above, the foreign nationals of non-Indian origin who are permanently resident in India or the foreign nationals of Indian origin are also exempted from submission of form QA 22 to open the resident (domestic) account in India.