**Summary:**
This notification, issued by the Reserve Bank of India (RBI), introduces the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Fourth Amendment Regulations, 2024. (Notification No. FEMA 10(R)/42024-RB dated November 19, 2024). The amendment, enacted under the authority of Section 9 and clause (e) of subsection (2) of Section 47 of the Foreign Exchange Management Act, 1999, modifies the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015.
The key change involves the definition of "startup" within Regulation 5 and Schedule I (Exchange Earners Foreign Currency (EEFC) Account Scheme). The explanation to subregulation (E) of Regulation 5 and paragraph 1(vii) of Schedule I is revised to define a startup as an entity recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) according to notification number G.S.R. 127(E) dated February 19, 2019, as amended from time to time.
These regulations take effect from the date of their publication in the Official Gazette.
The notification was issued by N. Senthil Kumar, General Manager, Reserve Bank of India. The principal regulations were initially published on January 21, 2016, vide G.S.R. No. 96(E) and subsequently amended through G.S.R. No. 570(E) dated June 1, 2016, G.S.R. 160(E) dated February 27, 2019, and Notification No. FEMA. 10(R)/32024-RB dated April 19, 2024.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy and foreign exchange management.
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 promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Foreign Currency Accounts by a Person Resident in India Regulations, 2015: Regulations issued by the Reserve Bank of India pertaining to foreign currency accounts held by individuals residing in India.
Foreign Exchange Management Foreign Currency Accounts by a Person Resident in India Fourth Amendment Regulations, 2024: Amendment to the 2015 regulations concerning foreign currency accounts held by individuals residing in India.
Department for Promotion of Industry and Internal Trade: A department under the Ministry of Commerce and Industry, Government of India, responsible for the formulation and implementation of policies for promotion and growth of industry and internal trade.
Exchange Earners Foreign Currency EEFC Account Scheme: A scheme that allows exchange earners to credit their foreign exchange earnings to an account maintained in foreign currency with an authorized dealer in India.
Mumbai, Maharashtra: The location of the Central Office of the Reserve Bank of India's Foreign Exchange Department.
N. Senthil Kumar: General Manager at Reserve Bank of India.
RESERVE BANK OF INDIA
(FOREIGN EXCHANGE DEPARTMENT)
CENTRAL OFFICE
MUMBAI 400 001
Notification No. FEMA 10 (R)/(4)/2024-RB November 19, 2024
Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India)
(Fourth Amendment) Regulations, 2024
In exercise of the powers conferred by section 9 and clause (e) 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 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:-
1. 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.
2. 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.”
3. 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
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