JKNP & ASSOCIATES

10. Blocked accounts

10. (i) Where an exemption from the provisions of section 9 is granted by the Reserve Bank in respect of payment of any sum to any person resident outside India and the exemption is made subject to the condition that the payment is made to a blocked account -

the payment shall be made to a blocked account in the name of that person in such manner as the Reserve Bank may, by general or special order, direct;

the crediting of that sum to that account shall, to the extent of the sum credited, be a good discharge to the person making the payment.

(ii) No sum standing at the credit of a blocked account shall be drawn on except in accordance with any general or special

permission, which may be granted conditionally or otherwise by the Reserve Bank.

(iii) In this section, ';blocked account'; means an account opened, whether before or after the commencement of this Act, as a

blocked account at any office or branch in India of a bank authorised in this behalf by the Reserve Bank, or an account blocked, whether before or after such commencement, by order of the Reserve Bank.