Home India Ministry of Finance Amendment to FEMA Rules...
Date: 16-May-2023 Category: Extra Ordinary State: Union Government Country: India

Amendment to FEMA Rules

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

What it means

  • The notification issued by the Ministry of Finance, Department of Economic Affairs, amends the Foreign Exchange Management (Current Account Transactions) Rules, 2000.
  • The amendment is made under the powers conferred by Section 5 and Section 46 of the Foreign Exchange Management Act, 1999, and in consultation with the Reserve Bank of India.
  • The amendment is considered necessary in the public interest.

Key Changes

  • The notification is called the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023.
  • The amendment rules come into force on the date of their publication in the Official Gazette, which is May 16, 2023.
  • Rule 7 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, is omitted.

Impact Analysis

Businesses involved in current account transactions

  • Action Items: Legal and finance teams should review the original Rule 7 and assess how its removal affects existing processes and compliance requirements. Update internal policies and procedures accordingly.

Reserve Bank of India (RBI)

  • Action Items: RBI will likely issue further guidance or clarifications regarding the omission of Rule 7. Monitor RBI communications and incorporate any new directives into compliance frameworks.

General Public

  • Action Items: Stay informed about changes in foreign exchange regulations, as they can affect international transactions and investments.

Key Entities Referenced

Ministry of Finance (Department of Economic Affairs): The issuing authority for the notification, responsible for economic policy and regulations. Reserve Bank of India (RBI): The central bank of India, consulted in the amendment process. Foreign Exchange Management Act, 1999: The principal legislation governing foreign exchange management in India. Foreign Exchange Management (Current Account Transactions) Rules, 2000: The set of rules being amended by this notification.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-16052023-245899 xxxGIDHxxx CG-DL-E-16052023-245899 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 297] नई दिल्ली, मगं लिार, मई 16, 2023/ििै ाख 26, 1945 No. 297] NEW DELHI, TUESDAY, MAY 16, 2023/VAISAKHA 26, 1945 जित्त मत्रं ालय (आर्थकि काय ि जिभाग) अजधसचू ना नई दिल्ली, 16 मई, 2023 सा. का. जन. 369(अ).—केंद्रीय सरकार, जििेिी मुद्रा प्रबंध अजधजनयम, 1999 (1999 का 42) की धारा 5 और उप-धारा (1) तथा धारा 46 की उपधारा (2) के खंड (क) द्वारा प्रित्त िजियों का प्रयोग करत े हुए और भारतीय ररज़ि ि बैंक के परामि ि स,े लोकजित म ें आिश्यक समझत े हुए, जििेिी मुद्रा प्रबंध (चाल ू खाता संव्यििार) जनयम, 2000 म ें जनम्नजलजखत संिोधन करती ि,ै अथाित्:— 1. (1) इन जनयमों का सजं िप्त नाम जििेिी मुद्रा प्रबंध (चालू खाता संव्यििार) (संिोधन) जनयम, 2023 ि।ै (2) ये रािपत्र म ेंउनके प्रकािन की तारीख स े प्रिृत िोंगे। 2. जििेिी मुद्रा प्रबंध (चाल ू खाता संव्यििार) जनयम, 2000 म ें जनयम 7 का लोप दकया िाएगा। [फा. स.ं 1/5/2023-ईएम] सुरजभ िैन, संयक्ु त सजचि (जित्तीय बािार) 3155 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] रिप्पण: मूल जनयम भारत के रािपत्र, असाधारण, भाग II, खंड 3, उप-खंड (i) म ें सा.का.जन. 381(अ), तारीख 3 मई, 2000 द्वारा प्रकाजित दकए गए थ ेऔर तत्पश्चात अजधसूचना सखं यांकों के द्वारा संिोजधत दकए गए थ:े- (i) सा.का.जन. 663 (अ), तारीख 09.08.2000; (ii) का.आ. 301 (अ), तारीख 30.03.2001; (iii) सा.का.जन. 831 (अ), तारीख 17.12.2002; (iv) सा.का.जन. 33 (अ), तारीख 15.1.2003; (v) सा.का.जन. 397 (अ), तारीख 01.05.2003; (vi) सा.का.जन. 731 (अ), तारीख 05.09.2003; (vii) सा.का.जन. 849 (अ), तारीख 27.10.2003; (viii) सा.का.जन. 608 (अ), तारीख 13.09.2004; (ix) सा.का.जन. 512 (अ), तारीख 27.07.2005; (x) सा.का.जन. 412 (अ), तारीख 10.07.2006; (xi) सा.का.जन. 349 (अ), तारीख 22.05.2009; (xii) सा.का.जन. 382 (अ), तारीख 05.05.2010; और (xiii) सा.का.जन. 426 (अ), तारीख 26.05.2015. MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 16th May, 2023 G.S.R. 369(E).—In exercise of the powers conferred by section 5 and sub-section (1), clause (a) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in consultation with the Reserve Bank of India, the Central Government having considered it necessary in the public interest, makes the following amendment to the Foreign Exchange Management (Current Account Transactions) Rules, 2000, namely:— 1. (1) These rules may be called the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Foreign Exchange Management (Current Account Transactions) Rules, 2000, rule 7 shall be omitted. [F. No. 1/5/2023-EM] SURBHI JAIN, Jt. Secy. (Financial Market) Note: The principal rules were published in Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. 381(E), dated the 3rd May, 2000 and subsequently amended vide notification numbers - (i) G.S.R.663(E), dt 09-08-2000; (ii) S.O.301(E) dt 30-03-2001; (iii) G.S.R.831(E), dt 17-12-2002; (iv) G.S.R.33(E), dt 15-01-2003; (v) G.S.R.397(E), dt 01-05-2003; (vi) G.S.R.731(E), dt 05-09-2003; (vii) G.S.R.849(E), dt 27-10-2003; (viii) G.S.R.608(E), dt 13-09-2004; (ix) G.S.R.512(E), dt 27-07-2005; (x) G.S.R.412(E), dt 10-07-2006; (xi) G.S.R.349(E), dt 22-05-2009; (xii) G.S.R.382(E), dt 05-05-2010; and (xiii) G.S.R.426(E), dt 26-05-2015. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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