**Summary:**
This notification, issued by the Reserve Bank of India (RBI), amends the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015. The amendment, titled "Foreign Exchange Management (Export and Import of Currency) Amendment Regulations, 2020," was issued under the authority of Section 47(2)(ga) of the Foreign Exchange Management Act, 1999.
The key changes are:
1. **Removal of Restrictions:** Regulation 3(1) of the Principal Regulations is amended to remove the existing stipulations regarding the export and import of currency notes of the Government of India and/or the Reserve Bank of India.
2. **RBI's Discretionary Power:** A new Regulation 9 is inserted, granting the Reserve Bank the power to permit the export or import of Indian currency notes. This is contingent upon an application made to the RBI and the RBI's satisfaction that such export or import is warranted, and is subject to terms and conditions stipulated by the RBI.
The amendment came into effect on the date of its publication in the Official Gazette. The notification is identified as No. FEMA 6/R/2020-RB and is dated August 11, 2020. The notification was published in the Official Gazette of the Government of India, Extraordinary, Part III, Section 4, dated August 18, 2020.
The principal regulations were published in the Official Gazette vide GSR No.1004(E) dated December 29, 2015, and subsequently amended vide G.S.R. No. 151(E) dated 26.02.2019. The issuing authority is the Reserve Bank of India, Foreign Exchange Department, Central Office, Mumbai. Ajay Kumar, Regional Director, New Delhi.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for managing the country's monetary policy and currency.
Foreign Exchange Management Act, 1999: An act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for matters connected therewith or incidental thereto.
Foreign Exchange Management Export and Import of Currency Regulations, 2015: Regulations pertaining to the export and import of currency as governed by the Foreign Exchange Management Act.
Foreign Exchange Management Export and Import of Currency Amendment Regulations, 2020: Amendments made in 2020 to the regulations concerning the export and import of currency under the Foreign Exchange Management Act.
Section 47 of the Foreign Exchange Management Act, 1999: This section likely grants the Reserve Bank of India the power to make regulations under the Foreign Exchange Management Act.
Official Gazette: A government publication where official notifications and regulations are published.
New Delhi: The location of the Regional Director of the Reserve Bank of India.
Ajay Kumar: Regional Director at Reserve Bank of India, New Delhi
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(Central Office)
Mumbai – 400001
Notification No. FEMA 6 (R)/(2)/2020-RB August 11, 2020
Foreign Exchange Management (Export and Import of Currency) (Amendment) Regulations,
2020
In exercise of the powers conferred by clause (ga) 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 (Export and Import of Currency) Regulations,
2015 (Notification No. FEMA 6 (R)/RB-2015 dated December 29, 2015) (hereinafter referred to as 'the
Principal Regulations'), namely: —
1. Short title & Commencement:
(i) These Regulations may be called the Foreign Exchange Management (Export and Import of
Currency) (Amendment) Regulations, 2020.
(ii) They shall come into force from the date of their publication in the Official Gazette.
2. Amendment to Regulation 3
In the Principal Regulations, in Regulation 3, sub- regulation 1, the portion beginning with “Without
prejudice to the provisions of sub-regulation (1)” and ending with “currency notes of Government of
India and/or of Reserve Bank of India subject to the terms and conditions as the Bank may stipulate”
shall be omitted.
3. Insertion of new Regulation 9
In the Principal Regulations, after Regulation 8, the following new regulation shall be inserted,
namely, -
“9. Reserve Bank’s power to permit export or import of currency: Notwithstanding
anything contained in these regulations, the Reserve Bank may, on an application
made to it and on being satisfied that it is necessary to do so, allow any person to take
or send out of India to any country or bring into India from any country currency notes
of Government of India and /or of Reserve Bank of India subject to such terms and
conditions as the Reserve Bank may stipulate.”
(Ajay Kumar)
Regional Director, New Delhi
Published in the Official Gazette of Government of India
Extraordinary Part III, Section 4, dated August 18, 2020
Foot Note:
The Principal Regulations were published in the Official Gazette vide GSR No.1004(E) dated
December 29, 2015 in Part II, Section 3, sub-section (i) and subsequently amended vide:
G.S.R. No. 151(E) dated 26.02.2019