Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2025
Summary: The Reserve Bank of India (RBI) has introduced amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 through Notification No. FEMA 14(R)(1)/2025-RB, dated February 10, 2025. The amendment primarily affects Regulation 3(2)(I)(a)(ii), refining payment methods for member countries of the Asian Clearing Union (ACU), except Nepal and Bhutan. Under the revised regulation, payments between residents of ACU member nations must be routed through the ACU mechanism or as per RBI directives to authorized dealers. For other transactions, receipts and payments must align with the guidelines specified in the subsequent sub-clause.
These amendments, issued under Section 47 of the Foreign Exchange Management Act, 1999 (FEMA), take effect from the date of publication in the Official Gazette. The changes aim to streamline cross-border transactions within the ACU framework while maintaining regulatory oversight.
RESERVE BANK OF INDIA
(FOREIGN EXCHANGE DEPARTMENT)
CENTRAL OFFICE
MUMBAI 400 001
Notification No. FEMA 14(R)(1)/2025-RB
February 10, 2025
Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2025
In exercise of the powers conferred by section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes the following amendment in the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 (Notification No. FEMA 14(R)/2023-RB dated December 20, 2023) (hereinafter referred to as ‘the Principal Regulations’), namely:-
1. Short title and commencement:
i. These regulations shall be called the Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2025.
ii. They shall come into force with effect from the date of their publication in the Official Gazette.
2. Amendment to Regulation 3:
In the Principal Regulations, in regulation 3, in sub-regulation (2), in clause (I), in sub-clause (a), for the item (ii) along with its proviso, the following shall be substituted, namely: –
“(ii) Member countries of ACU, other than Nepal and Bhutan – In respect of payments from a resident in the territory of one participant country to a resident in the territory of another participant country, through ACU mechanism, or as per the directions issued by the Reserve Bank to authorised dealers from time to time. For all other transactions, receipt and payment may be made in a manner as specified at (iii) below.”
(Dr Aditya Gaiha)
Chief General Manager-in-Charge
Foot Note: The Principal Regulations were published in the Official Gazette vide Notification No. FEMA 14(R)/2023-RB dated December 20, 2023 (published on December 21, 2023) in Part III, Section 4
