Foreign Exchange Management (Manner
of receipt and payment) Regulations, 2016
RBI/2016-17/93 October
20, 2016 To Madam/Sir, Foreign
Exchange Management (Manner of receipt and payment) Regulations, 2016 Attention of Authorised Dealer
Category-I (AD Category-I) banks is invited to A.D.(M.A. Series) Circular No.
11 dated May 16, 2000 in terms of which ADs were advised of various Rules,
Regulations, Notifications/ Directions issued under the Foreign Exchange
Management Act, 1999 (hereinafter referred to as the Act). In consultation
with the Government of India, the Foreign Exchange Management (Manner of
Receipt and Payment) Regulations, 2000; Foreign Exchange Management (Receipt
from, and payment to, a person resident outside India) Regulations, 2000 and
Foreign Exchange Management Notification (Transactions in Indian rupees with
residents of Nepal or Bhutan) Regulations 2000, as amended from time to time
have been repealed and superseded by the Foreign Exchange Management (Manner
of Receipt and Payment) Regulations, 2016 notified vide G.S.R. No.480 (E)
dated May 03, 2016. Further, attention of Authorised
Dealers is invited to para A.3 of Master
Direction No 16/2015-16 on Export of Goods and Services and B.4
of Master Direction No 17/2015-16 on
Import of Goods and Services dated January 1, 2016 respectively, as amended
from time to time. The synopsis of the new
Regulations notified is as under: 2. Manner of receipt in foreign
Exchange : (1) AD bank may receive foreign
exchange by way of remittance or by way of reimbursement from his branch or
correspondent outside India against payment for exports from India or against
any other payment in following manner : (A) Members of Asian Clearing
Union (ACU) (i) Bangladesh, Myanmar, Pakistan,
Sri Lanka and Republic of Maldives - a) Receipt for export of eligible
goods and services, through ACU mechanism i.e. by debit to the ACU
Dollar/Euro 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/Euro account of the Authorised Dealer maintained with the
correspondent bank in that member country, b) In any freely convertible
currency for cases other than export of eligible goods and services, c) In respect of exports from
India to Myanmar, payment may be received in any freely convertible currency
or through the ACU mechanism from Myanmar. (ii) Nepal and Bhutan- a) In Rupees b) In respect of exports from
India to Nepal, may be received in any freely convertible currency also,
provided the importer resident in Nepal has been permitted by the Nepal
Rashtra Bank to make payment in free foreign exchange. However, such receipts
shall not be routed through the ACU mechanism. (iii) Islamic Republic of Iran – In all cases including receipts
for export of eligible goods and services, in any freely convertible currency
and/or as prescribed by Reserve Bank of India from time to time. (B) All countries other than those
mentioned in (A) above:- (i) Receipt in rupees from the
account of a bank situated in any country other than an ACU member, (ii) In any freely convertible
currency. (2) (i) In respect of export from
India, receipt shall be made in a currency appropriate to the place of final
destination as mentioned in the declaration form irrespective of the country
of the residence of the buyer, (ii) Any other mode of receipt of
export proceeds as prescribed by the Reserve Bank of India from time to time. (3) Payment for export of goods /
software may be received from a Third Party (a party other than the buyer) as
per specified conditions. (4) Receipt for exports may also
be made in following manner: (i) In the form of a bank draft,
cheque, pay order, foreign currency notes/traveller’s cheque from a buyer
during his visit to India (ii) By debit to FCNR/NRE account
in India; (iii) In rupees from the credit
card servicing bank in India against the charge slip signed by the buyer; (iv) From a rupee account held in
the name of an Exchange House with an Authorised Dealer if the amount does
not exceed fifteen lakh rupees per export transaction; (v) In accordance with the
directions issued by the Reserve Bank to Authorised Dealers, where the export
is covered by the arrangement between the Central Government and the
Government of a foreign country or by the credit arrangement entered into by
the Exim Bank with a financial institution in a foreign state; (vi) In the form of precious
metals i.e. gold / silver / platinum equivalent to value of jewellery
exported by Gem & Jewellery units in Special Economic Zones and Export
Oriented Units on the condition that the sale contract provides for the same
and the value is declared in the relevant EDF; (vii) In addition to (i) and (iii)
above, any person resident in India may also receive any payment other than
for exports by means of postal order/postal money order issued by a post
office outside India. 3. Manner of payment in foreign
exchange: (1) AD bank may make payment in
foreign exchange by way of remittance from India or by way of reimbursement
to his branch or correspondent outside India against payment for import into
India, or against any other payment in the following manner: (A) Members of Asian Clearing
Union: (i) Bangladesh, Myanmar, Pakistan,
Sri Lanka and Republic of Maldives - a) Payment for import of eligible
goods and services by credit to the ACU Dollar/Euro 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/Euro account of the Authorised Dealer
maintained with the correspondent bank in that member country, b) In any freely convertible
currency for cases other than import of eligible goods and services c) In respect of imports to India
from Myanmar, payment may be made in any freely convertible currency or
through the ACU mechanism from Myanmar. (ii) Nepal and Bhutan- Payment may
be made in Rupees, (iii) Islamic Republic of Iran – In all cases including payments
for import of eligible goods and services, in any freely convertible currency
and/or as prescribed by Reserve Bank of India to ADs from time to time, (B) All countries other than those
mentioned in (A) above: (i) Payment in rupees from the
account of a bank situated in any country other than an ACU member, (ii) In any freely convertible
currency. (2) In respect of imports into
India; (i) where the goods are shipped
from ACU member, but the supplier is resident of a country other than member
of ACU (other than Nepal and Bhutan), payment may be made in rupees to the
account of a bank situated in any country other than an ACU member or in any
freely convertible currency, (ii) In all other cases, payment
shall be made in a currency appropriate to the country of shipment of goods. (iii) Any other mode of payment as
may be prescribed by the Reserve Bank of India from time to time. (3) Payments for import of goods /
software may be made to a Third Party (a party other than the supplier) as
per specified conditions. (4) Manner of Payment in certain
cases: (A) Payments for import of goods
may be made in foreign exchange through an international card held by him /
in rupees from international credit card / debit card through the credit /
debit card servicing bank in India against the charge slip signed by the
importer / as prescribed by Reserve Bank from time to time, provided that the
transaction is in conformity with the extant provisions including the Foreign
Trade Policy in force. (B) Any person resident in India
may also make payment as under: (i) in rupees towards meeting
expenses on account of boarding, lodging and services related thereto or
travel to and from and within India of a person resident outside India who is
on a visit to India; (ii) by means of a crossed cheque
or a draft as consideration for purchase of gold or silver in any form
imported by such person in accordance with the terms and conditions imposed
under any order issued by the Central Government under the Foreign Trade
(Development and Regulations) Act, 1992 or under any other law, rules or
regulations for the time being in force; (iii) a company or resident in
India may make payment in rupees to its non-whole time director who is
resident outside India and is on a visit to India for the company’s work and
is entitled to payment of sitting fees or commission or remuneration, and
travel expenses to and from and within India, in accordance with the
provisions contained in the company’s Memorandum of Association or Articles
of Association or in any agreement entered into by it or in any resolution
passed by the company in general meeting or by its Board of Directors,
provided the requirements of any law, rules, regulations, directions
applicable for making such payments are duly complied with. 4. Consequent to provisions of
para 3.(4) of this circular, para B.4 (iii) of Master
Direction No. 17/2015-16 dated January 1, 2016 on Imports of
goods and services has been amended and para B.4(iv) inserted. The amendments
have already been suitably incorporated in Master
Direction No. 16/2015-16 dated January 1, 2016 on Exports of
goods and services. 5. The new regulations have been
notified vide Notification No. FEMA 14
(R)/2016-RB dated May 02, 2016 c.f. G.S.R. No.480 (E) dated May
03, 2016 and shall come into force with effect from May 02, 2016. 6. AD Category- I banks may bring
the contents of the circular to the notice of their constituents concerned. 7. The directions contained in
this circular have been issued under Section 10(4) and 11(1) of the Foreign
Exchange Management Act, 1999 (42 of 1999) and are without prejudice to
permissions/ approvals, if any, required under any other law. Yours
faithfully, (Shekhar
Bhatnagar) |
We do not mediate buying, selling of products or services.
We have successfully served many reputable clients for Import-Export Data Information Services. Here are some of our clients:
Copyright © 2009 - 2024 www.seair.co.in. All Rights Reserved.