Foreign Exchange management (Reali-sation, Repatriation and Surrender of Foreign Exchange) Regulations, 2000
FEMA 9/2000-RB, dated
3-5-2000 [G.S.R. 392(E), dated 3-5-2000] - In exercise of the powers conferred by section 8,
sub-section (6) of section 10, clause (c) of sub-section (2) of section 47 of
the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank makes
the following regulations relating to the manner of, and the period for, realisation
of foreign exchange, repatriation of realised foreign exchange to India and its
surrender, namely:—
(i) These regulations may be called the
Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign
Exchange) Regulations, 2000.
(ii) They shall come into force on 1st day of
June, 2000.
In these Regulations, unless
the context requires otherwise,—
(i) ‘Act’ means Foreign Exchange Management
Act, 1999 (42 of 1999);
(ii) ‘Authorised dealer’ means a person
authorised as an authorised dealer under sub-section (1) of section 10 of the
Act;
(iii) ‘foreign exchange due’ means the amount
which a person has a right to receive or claim in foreign exchange;
(iv) ‘surrender’ means the selling of foreign
exchange to an authorised person in India in exchange of rupees;
(v) the words and expressions used but not
defined in these regulations shall have the same meanings respectively assigned
to them in the Act.
Duty of persons
to realise foreign exchange due.
A person resident in India
to whom any amount of foreign exchange is due or has accrued shall, save as
otherwise provided under the provisions of the Act, or the rules and
regulations made thereunder, or with the general or special permission of the
Reserve Bank, take all reasonable steps to realise and repatriate to India such
foreign exchange, and shall in no case do, or refrain from doing anything, or
take or refrain from taking any action, which has the effect of securing —
(a) that
the receipt by him of the whole or part of that foreign exchange is delayed; or
(b) that
the foreign exchange ceases in whole or in part to be receivable by him.
(1) On realisation of foreign exchange due, a
person shall repatriate the same to India, namely bring into, or receive in,
India and —
(a) sell
it to an authorised person in India in exchange for rupees; or
(b) retain or hold it in account with an
authorised dealer in India to the extent specified by the Reserve Bank; or
(c) use it for discharge of a debt or
liability denominated in foreign exchange to the extent and in the manner
specified by the Reserve Bank.
(2) A person shall be deemed to have
repatriated the realised foreign exchange to India when he receives in India
payment in rupees from the account of a bank or an exchange house situated in
any country outside India, maintained with an authorised dealer.
Period for
surrender of realised foreign exchange.
A person shall sell the
realised foreign exchange to an authorised person under clause (a) of
sub-regulation (1) of regulation 4, within the period specified below :—
(i) foreign exchange due or accrued as
remuneration for services rendered, whether in or outside India, or in
settlement of any lawful obligation, or an income on assets held outside India,
or as inheritance, settlement or gift, within seven days from the date of its
receipt;
(ii) in
all other cases within a period of ninety days from the date of its receipt.
Period for
surrender in certain cases.
(1) Any person who has acquired or purchased
foreign exchange for any purpose mentioned in the declaration made by him to an
authorised person under sub-section (5) of section 10 of the Act does not use
it for such purpose or for any other purpose for which purchase or acquisition
of foreign exchange is permissible under the provisions of the Act or the rules
or regulations or direction or order made thereunder, shall surrender such
foreign exchange or the unused portion thereof to an authorised person within a
period of sixty days from the date of its acquisition or purchase by him.
(2) Notwithstanding
anything contained in sub-regulation (1), where the foreign exchange acquired
or purchased by any person from an authorised person is for the purpose of
foreign travel, then, the unspent balance of such foreign exchange shall, save
as otherwise provided in the regulations made under the Act, be surrendered to
an authorised person—
(i) within ninety days from the date of
return of the traveller to India, when the unspent foreign exchange is in the
form of currency notes and coins; and
(ii) within one hundred eighty days from the
date of return of the traveller to India, when the unspent foreign exchange is
in the form of travellers cheques.
Nothing in these regulations
shall apply to foreign exchange in the form of currency of Nepal or Bhutan.