Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2025

Notification/Circular No.: FEMA 14(R)(1)/2025-RB 

Document Date: February 4, 2025 

Applicable Act/Rule: Foreign Exchange Management Act, 1999 (42 of 1999) 

Applicable Section/Rule: Regulation 3, Sub-regulation (2), Clause (I), Sub-clause (a) 

Effective Date: The date of publication in the Official Gazette i.e. February 10, 2025 

The Reserve Bank of India (RBI) has amended the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, through the Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2025.  

This amendment pertains to the settlement of payments between residents of member countries of the Asian Clearing Union (ACU), excluding Nepal and Bhutan. 

Key Changes: 

  • ACU Member Countries: The amendment specifies that payments from a resident in one ACU member country to a resident in another ACU member country should be settled through the ACU mechanism or as directed by the RBI to authorized dealers. 
  • Other Transactions: For all other transactions not covered under the ACU mechanism, the receipt and payment should be made in a manner specified in the regulations. 

This amendment aims to streamline cross-border transactions within the ACU member countries and ensure compliance with the Foreign Exchange Management Act, 1999. 

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