The Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2019

Nov 18, 2019 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Reserve Bank of India (RBI) on November 13, 2019, notifies the Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2019 to further amend the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016.

The followings are the amendments in the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016:-

 A new Regulation 2(v) related to “SNRR account” has been inserted, means a Special Non-Resident Rupee account.

 Regulation 4(1)(ii) related to “Manner of Receipts in certain cases” has been substituted, namely:

“by debit to FCNR or NRE or 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”;

 A new Regulation 4(3) has been inserted, namely:-

“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.”

 A new Regulation 6(2)(iv) and (v) related to “Manner of Payment in certain cases” has been 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.”

These Regulations shall come into effect from November 14, 2019.

[Notification No. FEMA 14(R)/(1)/2019-RB]


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