Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023

Last updated: 22 December 2023

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Quick Summary

The Reserve Bank of India has issued the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, replacing previous rules. These regulations outline the procedures for individuals and entities resident in India when making or receiving payments from those outside India. Generally, transactions must be conducted through an Authorised Bank, with specific guidelines for trade and non-trade transactions involving countries like Nepal, Bhutan, and ACU member states.

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 20th December, 2023 Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 No. FEMA 14(R)/2023-RB.In exercise of the powers conferred by Section 47 of the Foreign Exchange M

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FAQ :

The new regulations are called the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, issued by the Reserve Bank of India.

These regulations apply to any person resident in India making or receiving payments from a person resident outside India.

For trade transactions, payments to Nepal and Bhutan are generally in Indian Rupees, while payments to other countries can be in Indian Rupees or foreign currency. Transactions with ACU member countries follow the ACU mechanism or RBI directions.

Yes, for non-trade transactions, payments to Nepal and Bhutan are generally in Indian Rupees, except for overseas investment in Bhutan which can be in foreign currency. Payments to other countries can be in Indian Rupees or any foreign currency.

Payments and receipts in India for current account transactions (other than trade) between a person resident in India and a person resident outside India visiting India must be made only in Indian Rupees.

Yes, payments or receipts can also be made by debit or credit to a bank account maintained in accordance with the rules, regulations, or directions issued under the Foreign Exchange Management Act.