Notification/Circular No.: FEMA 10(R)(7)/2025-RB dated October 06, 2025
Applicable Act/Rule: Foreign Exchange Management Act, 1999
Effective Date – October 06, 2025
The Reserve Bank of India (RBI) has issued the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Seventh Amendment) Regulations, 2025 to update the framework for maintaining foreign currency accounts by residents
The amendment introduces a definition of ‘International Financial Services Centre (IFSC)’ in line with the International Financial Services Centres Authority Act, 2019.
It also substitutes sub-regulation (CA) of Regulation 5 to permit resident exporters to open and maintain foreign currency accounts with banks outside India, including those in IFSCs, for realisation of export proceeds and advance remittances.
Funds held in such accounts may be utilised for import payments or must be repatriated to India within:
An additional explanation clarifies that foreign currency accounts permitted to be opened “outside India/abroad” also include those in IFSCs, thereby broadening the operational scope for exporters under FEMA.
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