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Date: 15-Jan-2025 Category: Extra Ordinary State: Union Government Country: India

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

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This gazette notification introduces the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Fifth Amendment) Regulations, 2025.
  • It amends the existing Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015.
  • The amendment allows resident Indian exporters to open, hold, and maintain foreign currency accounts outside India.

Key Changes

  • A new sub-regulation (CA) is added to Regulation 5 of the principal regulations.
  • Resident Indian exporters can now open, hold, and maintain foreign currency accounts with banks outside India.
  • These accounts are for the realization of full export value and advance remittances received for export of goods or services.
  • Funds in these accounts can be used for import payments into India or repatriated to India.
  • The funds must be utilized or repatriated within the end of the next month from the date of receipt, after adjusting for forward commitments.
  • The realization and repatriation requirements as specified in Regulation 9 of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 must also be met.

Impact Analysis

Exporters

  • Action Item: Exporters need to ensure compliance with the repatriation timelines and other conditions.

Banks

  • Action Item: Banks in India should update their processes to ensure compliance with the new regulations.

Government & Regulators

  • Action Item: Regulators may need to update reporting and compliance requirements for exporters using foreign currency accounts.

Economy

  • Action Item: The government should monitor the impact of these regulations on the trade balance and foreign exchange reserves.

Key Entities Referenced

Reserve Bank of India (RBI): The central bank of India, responsible for issuing the notification and amending the regulations. Foreign Exchange Management Act, 1999: The principal act under which the regulations are framed. Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015: The principal regulations being amended by this notification. Foreign Exchange Management (Export of Goods and Services) Regulations, 2015: Regulations that define the realization and repatriation requirements for export proceeds, which must be followed by exporters. G.S.R. No.96(E) dated 21.01.2016: Original publication of the principal regulations. G.S.R. No.570(E) dated 01.06.2018: Previous amendment to the principal regulations. G.S.R. No. 498(E) dated 27.02.2019: Previous amendment to the principal regulations. Notification No.FEMA.10R(3)/2024-RB dated 23.04.2024: Previous amendment to the principal regulations. Notification No.FEMA.10R(4)/2024-RB dated 21.11.2024: Previous amendment to the principal regulations.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-15012025-260250 xxxGIDHxxx CG-MH-E-15012025-260250 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 40] नई ददल्ली, बुधर्ार, िनर्री 15, 2025/पौष 25, 1946 No. 40] NEW DELHI, WEDNESDAY, JANUARY 15, 2025/PAUSHA 25, 1946 भारतीय ररज़र् वबकैं (जर्दिे ी मद्रु ा जर्भाग) (केंद्रीय कायालव य) अजधसचू ना मुंबई, 14 िनर्री, 2025 जर्देिी मद्रु ा प्रबधं (भारत म ेंजनर्ासी व्यजि द्वारा जर्दिे ी मद्रु ा खात)े (पाचं र्ा ंसिं ोधन) जर्जनयमार्ली, 2025 स.ं फेमा. 10 (आर)(5)/2025-आरबी.—जर्देिी मुद्रा प्रबंध अजधजनयम, 1999 (1999 का 42) की धारा 9 और धारा 47 की उप-धारा (2) के खंड (ई) द्वारा प्रदत्त िजियों का प्रयोग करते हुए भारतीय ररज़र्व बैंक जर्देिी मुद्रा प्रबंध (भारत में जनर्ासी व्यजि द्वारा जर्देिी मुद्रा खाते) जर्जनयमार्ली, 2015 (अजधसूचना सं.फेमा. 10 (आर)/2015-आरबी, ददनांक 21 िनर्री 2016) (जिसे इसके बाद ‘मूल जर्जनयमार्ली’ कहा गया ह)ै में जनम्नजलजखत संिोधन करता है, यथा: - 1. सजं िप्त नाम और प्रारंभ i) यह जर्जनयमार्ली जर्देिी मुद्रा प्रबंध (भारत में जनर्ासी व्यजि द्वारा जर्देिी मुद्रा खाते) (पााँचर्ााँ संिोधन) जर्जनयमार्ली, 2025 कहलाएगी। ii) यह सरकारी रािपत्र में इसके प्रकािन की तारीख से लागू होगी। 2. मूल जर्जनयमार्ली में, जर्जनयम 5 में, उप जर्जनयम (सी) के बाद जनम्नजलजखत उप जर्जनयम (सीए) अतं र्र्वष्ट दकया िाएगा, यथा: - “सीए. भारत में जनर्ासी व्यजि, िो दक एक जनयातव क है, माल और सेर्ाओं के जनयावत के बदले जनयावतक द्वारा प्राप्त दकए गए पूणव जनयातव 385 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] मूल्य तथा अजिम जर्प्रेषण की र्सूली के जलए भारत के बाहर दकसी बैंक में जर्देिी मुद्रा खाता खोल सकता है, धारण कर सकता ह ैऔर बनाए रख सकता है। इस खाते में प्राप्त जनजधयों का उपयोग प्राजप्त के अगले माह के अंत तक भारत में अपने आयात के जलए भुगतान या भार्ी प्रजतबद्धताओं के समायोिन के बाद भारत में प्रत्यार्तवन के उद्देश्य से दकया िा सकता है, बित े जर्देिी मुद्रा प्रबंध (माल और सेर्ाओं का जनयावत) जर्जनयमार्ली, 2015 के जर्जनयम 9 में यथा जर्जनर्दवष्ट र्सूली और प्रत्यार्तवन संबंधी अपेिाएाँ भी पूरी होती हों।“ डॉ. आददत्य गेहा, प्रभारी मुख्य महाप्रबंधक [जर्ज्ञापन-III/4/असा./896/2024-25] मूल जर्जनयमार्ली भारत सरकार के सरकारी रािपत्र- असाधारण – भाग- II, खण्ड 3, उप-खण्ड (i) ददनांक 21.01.2016- िीएसआर संख्या 96 (ई), में प्रकाजित की गयी थी और इसे बाद में जनम्नजलजखत द्वारा संिोजधत दकया गया, यथा: - िीएसआर संख्या 570 (ई) ददनांक 01.06.2018 िीएसआर संख्या 498 (ई) ददनांक 27.02.2019 अजधसूचना सं. फेमा 10(R)(3)/2024-आरबी, ददनांक 23.04.2024 अजधसूचना सं. फेमा 10(R)(4)/2024-आरबी, ददनांक 21.11.2024 RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 14th January, 2025 Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Fifth Amendment) Regulations, 2025 No. FEMA 10(R)(5)/2025-RB.—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) (Fifth 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 5, after sub-regulation (C) the following sub-regulation (CA) shall be inserted , 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 the next month from the date of receipt of the funds after adjusting for forward commitments, provided that the realisation and repatriation requirements as specified in Regulation 9 of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 are also met.” Dr. ADITYA GAIHA, Chief General Manager-in-Charge [ADVT.-III/4/Exty./896/2024-25] 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; G.S.R. No.570(E) dated 01.06.2018 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 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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