The Reserve Bank of India (RBI) issued the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Fourth Amendment) Regulations, 2024, effective upon publication in the Official Gazette. These amendments modify Regulation 5 and Schedule I of the Foreign Exchange Management Regulations, 2015. The revisions redefine the term “startup” in alignment with the Department for Promotion of Industry and Internal Trade (DPIIT) notification G.S.R. 127(E) dated February 19, 2019, including any subsequent amendments. Specifically, the amendments affect sub-regulation E of Regulation 5 and paragraph 1(vii) of Schedule I in the Exchange Earner’s Foreign Currency (EEFC) Account Scheme, ensuring consistency in defining startups across related foreign exchange frameworks. The changes aim to provide clarity for entities categorized as startups, facilitating smoother adherence to regulatory requirements. These updates continue the RBI’s efforts to refine the FEMA framework, with prior amendments issued in 2016, 2019, and April 2024.
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE )
NOTIFICATION
Mumbai, the 19th November, 2024
Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Fourth Amendment) Regulations, 2024
No. FEMA 10 (R)/(4)/2024-RB.— In exercise of the powers conferred by section 9 and clause (e) of subsection (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 (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 [Notification No. FEMA 10(R)/2015-RB dated January 21, 2016] namely:-
4. SHORT TITLE AND COMMENCEMENT:-
i. These regulations shall be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Fourth Amendment) Regulations, 2024.
ii. They shall come into force with effect from the date of their publication in the Official Gazette.
5. Amendment to Regulation 5:
In Regulation 5, the explanation to the existing sub-regulation E shall be substituted as follows:-
“Explanation: For the purpose of this sub-regulation a ‘startup’ will mean an entity recognised as a startup by the Department for Promotion of Industry and Internal Trade pursuant to notification number G.S.R. 127(E) dated February 19, 2019, and as amended from time to time.”
6. Amendment to Schedule I of Exchange Earner’s Foreign Currency (EEFC) Account Scheme: The explanation to para 1 (vii) of Schedule I shall be substituted as follows:-
“Explanation: For the purpose of this schedule a ‘startup’ will mean an entity recognised as a startup by the Department for Promotion of Industry and Internal Trade pursuant to notification number G.S.R. 127(E) dated February 19, 2019, and as amended from time to time.”
N. SENTHIL KUMAR, General Manager
[ADVT.-III/4/Exty./694/2024-25]
Foot Note: 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 as under:
G.S.R. No.570(E) dated 01.06.2016
G.S.R. 160(E) dated 27.02.2019
Notification No. FEMA. 10R(3)/2024-RB dated April 19, 2024
