Sponsored
    Follow Us:
Sponsored

Reserve Bank of India (RBI) has introduced amendments to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015, through Notification No. FEMA 10(R)(5)/2025-RB. Effective upon publication in the Official Gazette, the changes enable Indian exporters to open, hold, and maintain foreign currency accounts with overseas banks. These accounts may be used for the realisation of export earnings, advance remittances, and import payments. However, exporters must repatriate any remaining funds to India by the end of the subsequent month after adjusting for forward commitments. The amendments ensure compliance with the realisation and repatriation requirements outlined in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015. These updates aim to facilitate smoother international trade transactions while maintaining regulatory oversight. The amendments build upon prior updates to the principal regulations, which were originally published in January 2016 and subsequently modified in 2018, 2019, and 2024.

RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
Mumbai 400 001

Notification No. FEMA 10(R)(5)/2025-RB

January 14, 2025

Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Fifth Amendment) Regulations, 2025

In exercise of the powers conferred by Section 9 and clause (e) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendments to the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 [Notification No. FEMA 10(R)/2015-RB dated January 21, 2016] (hereinafter referred to as ‘the principal regulations’), namely:

1. Short Title and Commencement: –

i. These regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Fifth Amendment) Regulations, 2025.

ii. They shall come into force from the date of their publication in the Official Gazette.

2. In the principal regulations, in regulation 5, after sub-regulation (C) the following sub-regulation (CA) shall be inserted, namely:-

“CA. A person resident in India, being an exporter, may open, hold and maintain a Foreign Currency Account with a bank outside India, for realisation of full export value and advance remittance received by the exporter towards export of goods or services. Funds in this account may be utilised by the exporter for paying for its imports into India or repatriated into India within a period not exceeding the end of the next month from the date of receipt of the funds after adjusting for forward commitments, provided that the realisation and repatriation requirements as specified in Regulation 9 of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 are also met.”

(Dr. Aditya Gaiha)
Chief General Manager-in-Charge

The Principal Regulations were published in the Official Gazette of Government of India – Extraordinary – Part-II, Section 3, Sub-Section (i) dated 21.01.2016 – G.S.R.No.96(E) and subsequently amended vide the following, namely;

G.S.R. No.570(E) dated 01.06.2018
G.S.R. No.160(E) dated 27.02.2019
Notification No.FEMA.10R(3)/2024-RB dated 23.04.2024
Notification No.FEMA.10R(4)/2024-RB dated 21.11.2024

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Ads Free tax News and Updates
Sponsored
Search Post by Date
February 2025
M T W T F S S
 12
3456789
10111213141516
17181920212223
2425262728