Receipt and Payment under FEMA Regulations Amended
[Notification No. FEMA 14(R)/(1)/2019-RB
dated November 13, 2019]
Sub: Foreign Exchange Management (Manner of Receipt and Payment)
(Amendment) Regulations, 2019
In
exercise of the powers conferred by Section 47 of the Foreign Exchange
Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the
following amendment in the Foreign Exchange Management (Manner of Receipt and
Payment) Regulations, 2016 (Notification No. FEMA 14 (R)/2016-RB
dated May 02, 2016) (hereinafter referred to as 'the
Principal Regulations'), namely:-
1.
Short title and commencement.
(i) These Regulations may be called the Foreign Exchange Management
(Manner of Receipt and Payment) (Amendment) Regulations, 2019.
(ii) They shall come
into effect from the date of their publication in the Official Gazette.
2.
In the Principal
Regulations:
(a) in regulation 2, after clause (iv), the
following new clause shall be inserted, namely,:-
(v)
‘SNRR account’ means a Special Non- Resident Rupee account referred to in sub. regulation (4) of regulation 5 of Foreign Exchange
Management (Deposit) Regulations, 2016.
(b) in regulation 4,
(i) in
sub-regulation (1), for clause (ii), the following shall be substituted,
namely:
“by
debit to FCNR/ NRE/ 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;”
(ii) after sub-regulation
(2), the following new sub. regulation shall be
inserted, namely:
“(3)
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.”
(c)
in regulation 6,
(i) in sub. regulation
(2), after clause (iii), the following new clauses shall be 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.”
Foot
Note: The Principal Regulations were published in the Official
Gazette vide No. G.S.R. 480(E) dated May 3, 2016 and subsequently amended as under