**Executive Summary**
This document, Notification No. FEMA 10(R)(7)/2025-RB, dated October 06, 2025, details the seventh amendment to the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015. The amendments define "International Financial Services Centre" (IFSC) and modify regulations regarding the maintenance and utilization of Foreign Currency Accounts by Indian exporters. The regulations come into force from the date of their publication in the Official Gazette.
**Key Points / Main Content**
* **Short Title and Commencement:**
* These regulations are called the "Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Seventh Amendment) Regulations, 2025."
* They come into force from the date of their publication in the Official Gazette.
* **Definition of International Financial Services Centre (IFSC):**
* "International Financial Services Centre" or ‘IFSC' shall have the same meaning as assigned to it in clause (g) of section 3 of the International Financial Financial Services Centres Authority Act, 2019 (50 of 2019).
* **Foreign Currency Account (FCA) Regulations for Exporters:**
* An Indian resident exporter can open, hold, and maintain an FCA with a bank outside India for export value realization and advance remittance.
* Funds in the FCA can be used for paying for imports into India or repatriated to India.
* Repatriation timelines from the date of receipt of funds (after adjusting for forward commitments):
* Three months for accounts maintained with banks in an IFSC.
* Next month for all other jurisdictions.
* Realization and repatriation requirements as per Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 must be met.
* **Clarification on FCA Location:**
* Foreign currency accounts permitted to be opened outside India/abroad can also be opened in International Financial Services Centre.
**Impact Analysis**
**Indian Exporters**
* **Impact:**
* Clarification on the permitted use and repatriation timelines for Foreign Currency Accounts, with specific terms for accounts held in IFSCs.
* Provides flexibility in managing export proceeds and import payments.
* **Action Required:**
* Comply with the revised repatriation timelines, particularly for accounts maintained in IFSCs.
* Ensure compliance with the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015.
**Banks (Especially those dealing with Foreign Exchange)**
* **Impact:**
* Need to understand and implement the updated regulations regarding FCAs, especially the timelines for repatriation and the rules concerning IFSCs.
* **Action Required:**
* Update internal procedures and systems to reflect the new regulations.
* Inform customers about the changes and ensure compliance.
Key Entities Referenced
Foreign Exchange Management Act, 1999: The governing law that empowers the Reserve Bank of India to make regulations regarding foreign exchange.
Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015: The principal regulations being amended by this notification, concerning foreign currency accounts held by Indian residents.
Reserve Bank of India: The regulatory body issuing the notification and responsible for implementing the Foreign Exchange Management Act.
International Financial Services Centres Authority Act, 2019: Defines the meaning of 'International Financial Services Centre' as used in the amended regulations.
Official Gazette: The official publication where the regulations will be published and become effective.
RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI - 400 001
Notification No. FEMA 10(R)(7)/2025-RB October 06, 2025
Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Seventh
Amendment) Regulations, 2025
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 amendments to 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] (hereinafter referred to as 'the principal regulations'), namely:
1. Short Title and Commencement: -
(i) These regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a person resident
in India) (Seventh Amendment) Regulations, 2025.
(ii) They shall come into force from the date of their publication in the Official Gazette.
2. In the principal regulations, in regulation 2, after clause (iii), the following shall be inserted namely:-
“(iii-a) ‘International Financial Services Centre’ or ‘IFSC’ shall have the same meaning as assigned to it in clause (g) of
section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019).”
3. In the principal regulations, in regulation 5, the sub-regulation (CA) shall be substituted by the following, namely:-
“(CA). A person resident in India, being an exporter, may open, hold and maintain a Foreign Currency Account with a
bank outside India, for realisation of full export value and advance remittance received by the exporter towards export of
goods or services. Funds in this account may be utilised by the exporter for paying for its imports into India or repatriated
into India within a period not exceeding the end of
(a) three months in case of accounts maintained with banks in an International Financial Services Centre; or
(b) next month for all other jurisdictions;
from the date of receipt of the funds after adjusting for forward commitments, provided that the realisation and repatriation
requirements as specified in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015, as
amended from time to time, are also met.”
4. In the principal regulations, at the end of regulation 5, the following shall be inserted namely:-
“Explanation: - For the purpose of regulation 5, the foreign currency accounts permitted to be opened ‘outside India/
abroad’ can also be opened in International Financial Services Centre.”
(N. Senthil Kumar)
Chief General Manager
Footnote: 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 vide the following,
namely;
Notification G.S.R. No.570(E) dated 01.06.2016
Notification G.S.R. No.160(E) dated 27.02.2019
Notification No.FEMA.10R(3)/2024-RB dated 23.04.2024
Notification No.FEMA.10R(4)/2024-RB dated 21.11.2024
Notification No.FEMA.10R(5)/2025-RB dated 14.01.2025
Notification No.FEMA.10R(6)/2025-RB dated 29.04.2025