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Date: 23-Apr-2024 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

Issued by Reserve Bank of India · Foreign Exchange Department

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Executive Summary & Key Takeaways

What it means

  • The notification introduces the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Amendment) Regulations, 2024. It amends the 2015 regulations concerning foreign currency accounts held by Indian residents.
  • The amendment allows funds raised through External Commercial Borrowings (ECB), American Depository Receipts (ADRs), Global Depository Receipts (GDRs), or direct listing of equity shares of Indian companies on international exchanges to be held in foreign currency accounts outside India, pending utilization or repatriation to India, provided the conditions related to raising such funds are met.

Key Changes

  • Regulation 5 of the Principal Regulations (Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015) is amended.
  • Specifically, sub-regulation (F)(1) of Regulation 5 is replaced with a new provision.
  • The new provision permits funds raised via ECB, ADRs, GDRs, or direct listing on international exchanges to be held in foreign currency accounts abroad until utilized or repatriated to India, subject to compliance with relevant conditions for raising such funds.

Impact Analysis

Impact on Corporates

  • Action Item: Review current fund-raising strategies and foreign currency account management policies to align with the new regulations. Ensure compliance mechanisms are in place.

Impact on Banks

  • Action Item: Update internal policies and procedures to reflect the amended regulations. Train relevant staff on the new provisions.

Impact on Regulatory Compliance

  • Action Item: Enhance internal audit and compliance functions to ensure adherence to the regulatory requirements for raising and managing funds under these provisions.

Key Entities Referenced

Reserve Bank of India (RBI): The regulatory authority issuing the notification and responsible for overseeing foreign exchange management in India. Foreign Exchange Management Act, 1999: The principal legislation governing foreign exchange transactions in India, under which the regulations are framed. Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015: The original regulations being amended by this notification, concerning foreign currency accounts held by Indian residents. External Commercial Borrowings (ECB): Commercial loans raised by eligible resident entities from recognized non-resident entities. American Depository Receipts (ADR): A certificate representing ownership of shares in a non-US company that trades in US financial markets. Global Depository Receipts (GDR): A certificate representing ownership of shares in a company that trades outside of the company's home country.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-23042024-253829 xxxGIDHxxx CG-MH-E-23042024-253829 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 274] नई ददल्ली, मगं लर्ार, अप्रलै 23, 2024/र्िै ाख 3, 1946 No. 274] NEW DELHI, TUESDAY, APRIL 23, 2024/VAISAKHA 3, 1946 भारतीय ररज़र् व बकैं (जर्देिी मद्रु ा जर्भाग) (केंद्रीय कायालव य) अजधसचू ना मुंबई, 19 अप्रैल , 2024 जर्देिी मद्रु ा प्रबधं (भारत म ेंजनर्ासी व्यजि द्वारा जर्दिे ी मद्रु ा खात)े (सिं ोधन) जर्जनयमार्ली, 2024 अजधसचू ना सख्ं या फेमा.10आर (3)/2024-आरबी.—जर्देिी मुद्रा प्रबंध अजधजनयम, 1999 (1999 का 42) की धारा 9 तथा 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 संख्या FEMA10(R)/2015-RB, ददनांक 21 िनर्री, 2016) (जिसे इसके बाद मूल जर्जनयमार्ली कहा िाएगा) में जनम्नजलजखत संिोधन करता है, अथावत् :- 1. सजं िप्त िीर्कव एर् ंप्रारंभ (i) यह जर्जनयमार्ली जर्देिी मुद्रा प्रबंध (भारत में जनर्ासी व्यजि द्वारा जर्देिी मुद्रा खाते) (संिोधन) जर्जनयमार्ली, 2024 कहलाएगी। (ii) यह जर्जनयमार्ली सरकारी रािपत्र में इसके प्रकािन की तारीख से लागू होगी। 2. मलू जर्जनयमार्ली के जर्जनयम 5 म ेंसिं ोधन मूल जर्जनयमार्ली के जर्जनयम 5 के उप-जर्जनयम (एफ)(1) में, मौिूदा प्रार्धान को जनम्नजलजखत से प्रजतस्ट्थाजपत दकया िाएगा, अथावत्: 2677 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] “यदद बाह्य र्ाजणजययक उधार (ईसीबी) िुटाने या अमेररकी जडपॉजिटरी रसीदों (एडीआर) या ग्लोबल जडपॉजिटरी रसीदों (िीडीआर) अथर्ा भारत में जनगजमत कंपजनयों के साधारण िेयरों को अंतरराष्ट्रीय एक्सचेंिों पर सीधे सूचीबद्ध करते हुए संसाधन िुटाने के संबंध में जनधावररत ितों का पालन दकया गया हो तो, इस प्रकार िुटाई गई धनराजियों को िब तक उपयोग में नहीं लाया िाता या उन्हें भारत में प्रत्यायोजित नहीं कर ददया िाता, तब तक उन्ह ें भारत के बाहर जस्ट्थत दकसी बैंक के जर्देिी मुद्रा खाते में धाररत दकया िा सकता ह।ै ’’ लता राधाकृष्णन, प्रभारी महाप्रबंधक [जर्ज्ञापन-III/4/असा./043/2024-25] फुट नोट: मूल जर्जनयमार्ली भारत सरकार के सरकारी रािपत्र-असाधारण-भाग-II, खंड 3 के उप-खंड (i) में ददनांक 21.01.2016 के िी.एस.आर.सं.96(ई) के माध्यम से प्रकाजित की गयी थी और तदपु रांत इसका संिोधन जनम्नानुसार दकया गया- िी.एस.आर.सं.570(ई), ददनांक 01.06.2016 िी.एस.आर.सं.160(ई), ददनांक 27.02.2019 RESERVE BANK OF INDIA (Foreign Exchange Department) (Central Office) NOTIFICATION Mumbai, the 19th April, 2024 Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Amendment) Regulations, 2024 Notification No. FEMA. 10R(3)/2024-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 amendment in the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 (Notification No. FEMA10(R)/2015-RB dated January 21, 2016) (hereinafter referred to as 'the Principal Regulations'), namely:- 1. Short Title & Commencement (i) These Regulations may be called the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Amendment) Regulations, 2024. (ii) They shall come into force from the date of their publication in the Official Gazette. 2. Amendment to Regulation 5 of the Principal Regulations In sub-regulation (F)(1) of Regulation 5 of the Principal Regulations, the existing provision shall be substituted by the following, namely: “Subject to compliance with the conditions in regard to raising of External Commercial Borrowings (ECB) or raising of resources through American Depository Receipts (ADRs) or Global Depository Receipts (GDRs) or through direct listing of equity shares of companies incorporated in India on International Exchanges, the funds so raised may, pending their utilisation or repatriation to India, be held in foreign currency accounts with a bank outside India.” LATHA RADHAKRISHNAN, General Manager-in-Charge [ADVT.-III/4/Exty./043/2024-25] 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. No.160(E) dated 27.02.2019 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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