Executive Summary:
This notification issued by the Reserve Bank of India introduces amendments to the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016. The amendments, effective from the date of publication in the Official Gazette, concern the introduction and use of Special Non-Resident Rupee (SNRR) accounts for transactions involving persons resident outside India. The notification was issued on November 13, 2019.
Key Points / Main Content:
SNRR Account Introduction:
* Defines "SNRR account" as a Special Non-Resident Rupee account as referred to in sub-regulation 4 of regulation 5 of Foreign Exchange Management Deposit Regulations, 2016.
Amendments to Regulation 4:
* Allows debit to FCNR/NRE/SNRR account maintained by a person resident outside India/overseas buyer with an Authorised Dealer or an Authorised Bank in India, as specified in Foreign Exchange Management Deposits Regulations, 2016.
* Permits payment in rupees from an SNRR account of a person resident outside India to a person resident in India, provided the underlying transactions comply with the Foreign Exchange Management Act, 1999, and related regulations.
Amendments to Regulation 6:
* Allows credit to an SNRR account maintained by a person resident outside India/overseas seller with an Authorised Dealer or an Authorised Bank in India for imports into India, as specified in Foreign Exchange Management Deposit Regulations, 2016.
* Permits payment in rupees to an SNRR account of a person resident outside India, provided the underlying transactions comply with the Foreign Exchange Management Act, 1999, and related regulations.
Impact Analysis:
Person Resident in India:
* Impact: Can receive payments in rupees from SNRR accounts, provided transactions comply with FEMA 1999.
* Action Required: Ensure compliance of underlying transactions with FEMA 1999, rules, regulations, and directions issued thereunder.
Person Resident Outside India/Overseas Buyer/Seller:
* Impact: Can use SNRR accounts for receipts and payments related to transactions with residents in India.
* Action Required: Maintain SNRR accounts with Authorised Dealers or Banks in India as specified in Foreign Exchange Management Deposits Regulations, 2016 and ensure compliance of underlying transactions with FEMA 1999, rules, regulations, and directions issued thereunder.
Authorised Dealers/Authorised Banks:
* Impact: Need to facilitate transactions through SNRR accounts.
* Action Required: Ensure that transactions through SNRR accounts comply with FEMA 1999 and related regulations and directions.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the foreign exchange market.
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 Manner of Receipt and Payment Regulations, 2016: Regulations pertaining to the manner of receiving and making payments in foreign exchange, as governed by the Foreign Exchange Management Act.
Mumbai, Maharashtra: The city where the notification was issued by the Reserve Bank of India.
Foreign Exchange Management Manner of Receipt and Payment Amendment Regulations, 2019: An amendment to the Foreign Exchange Management Manner of Receipt and Payment Regulations, 2016.
FEMA 14R2016RB: Notification number for Foreign Exchange Management Manner of Receipt and Payment Regulations, 2016.
SNRR account: Special Non-Resident Rupee account referred to in sub regulation 4 of regulation 5 of Foreign Exchange Management Deposit Regulations, 2016.
FCNR NRE: Foreign Currency Non-Resident / Non-Resident External account
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EXTRAORDINARY
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PART III—Section 4
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((((कककक(cid:15)(cid:15)(cid:15)(cid:15)(cid:10)(cid:10)(cid:10)(cid:10)ीीीीयययय ककककााााययययाााालल(cid:17)(cid:17)लल(cid:17)(cid:17) यययय))))
अअअअििििधधधधससससचचूूचचूू ननननाााा
मुंबई, 13 नव(cid:3)बर, 2019
ििििववववददददशशेेशशेे ीीीी मममम(cid:21)(cid:21)ुु(cid:21)(cid:21)ुु ाााा (cid:22)(cid:22)(cid:22)(cid:22)बबबबधधंंधधंं (((((cid:22)(cid:22)(cid:22)(cid:22)ाााािििि(cid:26)(cid:26)(cid:26)(cid:26) एएएएवववव ंं ंंभभभभगगगगुुुु तततताााानननन ककककाााा ततततररररीीीीककककाााा)))),,,, ((((ससससशशंंशशंं ोोोोधधधधनननन)))) ििििववववििििननननययययममममााााववववललललीीीी,,,, 2222000011119999
सससस..ंं..ंं फफफफेेेेममममाााा.... 11114444((((आआआआरररर))))////((((1111))))////2222000011119999----आआआआररररबबबबीीीी....————िवदशे ी मु(cid:14)ा (cid:16)बंध अिधिनयम,1999 (1999 का 42) क(cid:28)
धारा 47 (cid:30)ारा (cid:16)द(cid:31) शि य! का (cid:16)योग करते %ए भारतीय (रज़व* ब+क एत,ारा िवदशे ी मु(cid:14)ा (cid:16)बधं ((cid:16)ाि- एव ं
भुगतान का तरीका) िविनयमावली, 2016 (.दनांक 02 मई 2016 क(cid:28) अिधसचू ना सं. फेमा.14(आर)/2016-
आरबी) (िजसे इसके प:ात “मूल िविनयमावली” कहा गया ह)ै म; िन<ानुसार संशोधन करता ह,ै अथा*त:-
1111.... ससससििंंििंं """"(cid:26)(cid:26)(cid:26)(cid:26) ननननाााामममम औऔऔऔरररर (cid:22)(cid:22)(cid:22)(cid:22)ााााररररंंंंभभभभ
(i) यह िविनयमावली िवदशे ी मु(cid:14)ा (cid:16)बंध ((cid:16)ाि- एवं भुगतान का तरीका) (संशोधन) िविनयमावली, 2019
कहलाएगी ।
(ii) यह िविनयमावली सरकारी राजपB म; उसके (cid:16)काशन क(cid:28) तारीख से लागू होगी ।
2. मूल िविनयमावली म;:
(ए) िविनयम 2 म,; खंड (iv) के बाद िन<िलिखत नया खंड शािमल .कया जाएगा, अथा*त
(v) ‘एसएनआरआर खाते’ से ताGपय* ह ैिवदशे ी मु(cid:14)ा (cid:16)बंध (जमा), िविनयमावली, 2016 के िविनयम 5 के उप-
िविनयम (4) म; संदHभ*त िवशेष अिनवासी Jपया खाता।
(बी) िविनयम 4 म,;
5886 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(i) उप-िविनयम (1) म; खंड (ii) को िन<िलिखत से (cid:16)ितKथािपत .कया जाएगा, अथा*त:
“िवदशे ी मु(cid:14)ा (cid:16)बंध (जमा), िविनयमावली, 2016, म; िविनLदM* .कए गए अनुसार भारत के बाहर के िनवासी
.कसी Nि (समु(cid:14)पारीय खरीदार) (cid:30)ारा भारत म; .कसी (cid:16)ािधकृत Nापारी अथवा (cid:16)ािधकृत ब+क के पास
बनाए रखे गए एफ़सीएनआर/ एनआरई/ एसएनआरआर खाते से डेिबट कर के”
(ii) उप-िविनयम (2) के बाद िन<िलिखत नया उप-िविनयम अंतHवM* .कया जाएगा, अथा*त:
“(3) भारत के िनवासी .कसी Nि (cid:30)ारा भारत के बाहर के िनवासी .कसी Nि के एसएनआरआर खात े स े
भी भगु तान (cid:16)ा- .कया जा सकता ह,ै .कPतु यह सुिनि:त करने के बाद .क अंतHन*िहत लेनदने िवदशे ी मु(cid:14)ा
(cid:16)बंध अिधिनयम, 1999 के (cid:16)ावधान! तथा उसके अंतग*त जारी .कए गए िनयम, िविनयम तथा िनदशे ! के
अनुसार ह”+
(सी) िविनयम 6 म,;
(i) उप-िविनयम (2) म; खंड (iii) के बाद िन<िलिखत नए खंड! को अंतHवM* .कया जाएगा, अथा*त:
“(iv) िवदशे ी मु(cid:14)ा (cid:16)बंध (जमा), िविनयमावली, 2016, म; िविनLदM* .कए गए अनुसार भारत के बाहर के
िनवासी .कसी Nि (समु(cid:14)पारीय िवQेता) (cid:30)ारा भारत म; आयात करने हते ु भारत म; .कसी (cid:16)ािधकृत Nापारी
अथवा (cid:16)ािधकृत बक+ के पास बनाए रखे गए एसएनआरआर खाते म; जमा कर के ”
(v) भारत के बाहर के िनवासी Nि के एसएनआरआर खाते म; Jपये म,; .कPतु यह सुिनि:त करन े के प:ात .क
अंतHन*िहत लेनदने िवदशे ी मु(cid:14)ा (cid:16)बंध अिधिनयम, 1999 के (cid:16)ावधान! तथा उसके अंतग*त जारी .कए गए िनयम,
िविनयम तथा िनदशे ! के अनसु ार ह +।”
अजय कुमार िमR, (cid:16)भारी मSु य महा(cid:16)बंधक
[िवTापन- /4/असा./289/19]
III
फफफफुुुुटटटट ननननोोोोटटटट ::::
िवदशे ी मु(cid:14)ा (cid:16)बंध ((cid:16)ाि- एवं भगु तान का तरीका) िविनयमावली, 2016 (.दनांक 02 मई 2016 क(cid:28) अिधसूचना
सं. फेमा.14(आर)/2016-आरबी) को .दनांक 03.05.2016 के सा.का.िन. सं. 480(अ) के माUयम से सरकारी
राजपB म; (cid:16)कािशत .कया गया तथा तVप:ात िन<िलिखत के माUयम से इसे संशोिधत .कया गया, अथात* :
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 13th November, 2019
Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2019
No. FEMA 14(R)/(1)/2019-RB.—In exercise of the powers conferred by 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 (Manner of Receipt and Payment) Regulations, 2016 (Notification No. FEMA 14(R)/2016-RB
dated May 02, 2016) (hereinafter referred to as 'the Principal Regulations'), namely:-
1. Short title and commencement.
(i) These Regulations may be called the Foreign Exchange Management (Manner of Receipt and Payment)
(Amendment) Regulations, 2019.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(ii) They shall come into effect from the date of their publication in the Official Gazette.
2. In the Principal Regulations:
(a) in regulation 2, after clause (iv), the following new clause shall be inserted, namely, :-
(v) ‘SNRR account’ means a Special Non-Resident Rupee account referred to in sub. regulation (4) of
regulation 5 of Foreign Exchange Management (Deposit) Regulations, 2016.
(b) in regulation 4,
(i) in sub-regulation (1), for clause (ii), the following shall be substituted, namely:
“by debit to FCNR/ NRE/ SNRR account maintained by a person resident outside India
(overseas buyer) with an Authorised Dealer or an Authorised Bank in India, as specified in
Foreign Exchange Management (Deposits) Regulations, 2016;”
(ii) after sub-regulation (2), the following new sub-regulation shall be inserted, namely:
“(3) Payment may also be received in rupees by a person resident in India from SNRR
Account of person resident outside India after ensuring that the underlying transactions are
in conformity with the provisions of the Foreign Exchange Management Act, 1999 and the
rules, regulations and directions issued thereunder. ”
(c) in regulation 6,
(i) in sub-regulation (2), after clause (iii), the following new clauses shall be inserted, namely:
“(iv) by credit to SNRR account maintained by a person resident outside India (overseas
seller) with an Authorised Dealer or an Authorised Bank in India for imports into India, as
specified in Foreign Exchange Management (Deposit) Regulations, 2016.
(v) in rupees to SNRR account of the person resident outside India after ensuring that the
underlying transactions are in conformity with the provisions of the Foreign Exchange
Management Act, 1999 and the rules, regulations and directions issued thereunder. ”
AJAY KUMAR MISRA, Chief General Manager-in-Charge
[ADVT.-III/4/Exty./289/19]
Foot Note:
The Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016, (Notification
No. FEMA 14(R)/2016-RB dated May 02, 2016) was published in the Official Gazette vide G.S.R. No. 480(E)
dated 03.05.2016
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.