Payment in foreign exchange by an authorised dealer shall be:

♦ Either by debit to Asian Clearing union dollar account in India; or

♦ Payment in freely convertible currency as specified in regulation 5 of Foreign Exchange Management (Manner of Receipt and Payment) Regulation, 2016

Import Payments through International Cards:

Payments for import can be made by person resident in India from international card against charge slip signed by the importer in form prescribed by the RBI- Regulation 6(1) of Foreign Exchange Management (Manner of Receipt and Payment) Regulation, 2016.

Money transfer services Scheme:

Money transfer services Scheme (MTSS) is quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourist visiting in India are permissible. No outward remittance from India is permissible under MTSS.

RBI has issued various guidelines for permitting India agents under MTSS, such as guidelines for entry norms to become Indian agent, overseas principals etc.

Online Payment Gateways:

It is the popular mode of facilitating e-commerce transactions. Some of the Online Payment Gateway Service Providers (OPGSPs) facilitates cross-border transactions also. In order to ensure that these OPGSPs do not violate FEMA provisions, RBI has decided to allow authorised dealer category I banks to offer facility of repatriation of export related remittances by entering into standing arrangement with such OPGSPs. This facility will be available for export of goods and services not exceeding USD 10,000. The facility of online payment has been extended for payment of import also.

OPGSPs providing such services should open liaison office in India after finalizing arrangements with AD Category I Banks and obtaining permission from RBI.

Making Payment in Indian Rupees in some transactions:

Any Person resident outside in India can make any payment in rupees in following cases:

SL. No. Cases Transactions
1. Meeting expenses of visitor from abroad Payment in rupees can be made towards meeting expenses on account of boarding, lodging and service related thereto or travel to, from and within India of a person resident outside India who is on visit to India.
2. Meeting of Medical Expenses of NRI close relatives by resident individuals in India Where the medical expenses in respect of NRI close relative (relative as defined in Companies Act, 2013) are paid by a resident individual, such a payment being in the nature of resident-to-resident transaction may be covered the term “service related thereto”.
3. Payment of purchase of Gold & Silver Payment in rupees can be made by means of a crossed cheque or draft as consideration for purchase of gold and silver in any form imported by such person in accordance with the terms and conditions imposed under any order issued by central government under the Foreign Trade (Development and Regulation) Act, 1992 or under any other law, rules and regulations for the time being in force.
4. Payment of Non- wholetime Director in rupees A Company in or resident in India can make payment in rupees to its non-wholetime director who is resident outside India for the Company’s work and is entitled to payment if remuneration, sitting fees, commission and travel expenses to and from and within India, in accordance with the provision contained in the company’s articles or agreement with the director. The requirements of any law, rules, regulations, directions applicable for making such payments should be duly complied with regulation 6(2)(iii) of Foreign Exchange Management (Manner of Receipt and Payment) Regulation, 2016. The director can apply repatriation of this amount abroad.
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