Reserve Bank of India issued a notification on May 6th, 2024, amending the Foreign Exchange Management (FEM) (Deposit) Regulations of 2016. The amendment, titled Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024, allows authorized dealers in India to permit non-residents to open interest-bearing accounts in Indian Rupees and/or foreign currency for the purpose of posting and collecting margin in India for permitted derivative contracts.
RESERVE BANK OF INDIA
(Foreign Exchange Department)
NOTIFICATION
Mumbai, the 6th May, 2024
Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024
F. No. FEMA 5(R)/(4)/2024-RB.—In exercise of the powers conferred by sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Deposit) Regulations, 2016 (Notification No. FEMA 5 (R)/2016-RB dated April 01, 2016) (hereinafter referred to as ‘the Principal Regulations’), namely:-
1. SHORT TITLE AND COMMENCEMENT:
(i) These regulations shall be called the Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024.
(ii) They shall come into force with effect from the date of their publication in the Official Gazette.
2. Amendment to Regulation 7 of the Principal Regulations:
In the Principal Regulations, in Regulation 7, after sub-regulation 5, the following new sub-regulation shall be inserted, namely:-
“6) An authorised dealer in India may allow a person resident outside India to open, hold and maintain an interest-bearing account in Indian Rupees and / or foreign currency for the purpose of posting and collecting margin in India, for a permitted derivative contract entered into by such person in terms of Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020, dated October 23, 2020, as amended from time to time, subject to directions issued by the Reserve Bank in this regard.”
LATHA RADHAKRISHNAN, General Manager (Officer-in-Charge)
[ADVT.-III/4/Exty./084/2024-25]
Foot Note: The Principal Regulations were published in the Official Gazette vide No. G.S.R. 389(E) dated April 01, 2016 in Part II, Section 3, sub-section (i) and subsequently amended vide
G.S.R.1093 (E) dated 09.11.2018
G.S.R. 498 (E) dated 16.07.2019
No. FEMA 5(R)/(3)/2019-RB dated November 13, 2019
