RBI notifies the Foreign Exchange Management (Manner of Receipt and Payment) (Second Amendment) Regulations, 2020

Mar 09, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Reserve Bank of India (RBI) on March 04, 2020 notifies the Foreign Exchange Management (Manner of Receipt and Payment) (Second Amendment) Regulations, 2020 to further amend the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016.

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

 Under Regulation 3 which specifies the manner of receipt in Foreign Exchange

i. Sub-regulation 1(A) has been substituted, namely: “Members of Asian Clearing Union (ACU)”.

ii. Sub-regulation (1)(A)(i)(a) has been substituted, namely:

Receipt for export of eligible goods and services by debit to the ACU Dollar account and / or ACU Euro account and / or ACU Japnese Yen account in India of a bank of the member country in which the other party to the transaction is resident or by credit to the ACU Dollar account and / or ACU Euro Account and / or ACU Japnese Yen account of the authorized dealer maintained with the correspondent bank in that member country.

 Under Regulation 5 which specifies the Manner of payment in Foreign Exchange:

i. Sub-regulation 1(A) has been substituted, namely: “Members of Asian Clearing Union (ACU)”.

ii. Sub-regulation 1(A)(i)(a) has been substituted, namely:

Payment for import of eligible goods and services by credit to ACU Dollar account and / or ACU Euro account and / or ACU Japnese Yen account in India of a bank of the member country in which the other party to the transaction is resident or by debit to the ACU Dollar account and / or ACU Euro account and / or ACU Japnese Yen account of the authorized dealer maintained with the correspondent bank in that member country.

They will come into force from the date of their publication in the official Gazette (March 06, 2020).

[Notification No. FEMA 14(R)/(2)/2020-RB]


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