Apr 28, 2025

Amendments to Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015

The RBI has, by way of a Notification dated January 14, 2025, amended the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 (‘Foreign Currency Accounts Regulations’) allowing an exporter resident in India to open a foreign currency account outside India for receiving payment or advances in relation to the exported goods. Further, the exporter can utilize the funds held in this account for making their respective import payments. These funds can also be repatriated to India by the end of the next month from the date of receiving funds in that account (adjusting for forward commitments) subject to the repatriation requirements as prescribed under Regulation 9 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015. This is a new provision introduced by way of this amendment, and there was no such provision prior to the amendment.

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