Notification/Circular No.: FEMA/396(4)/2025-RB dated September 29, 2025
Applicable Act/Rule: Foreign Exchange Management Act, 1999
The Reserve Bank of India has issued the Fourth Amendment to the Foreign Exchange Management (Debt Instruments) Regulations, 2019. This amendment clarifies and expands permissions for persons resident outside India holding rupee accounts under the Foreign Exchange Management (Deposit) Regulations, 2016.
(i) In paragraph 1 of Schedule 1 to the Principal Regulation, the existing sub-paragraph E, shall be substituted by the following:
“E. Permission to persons resident outside India maintaining rupee account in terms of regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016
Persons resident outside India that maintain a rupee account in terms of regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016 may purchase or sell dated Government Securities/treasury bills and non-convertible debentures/bonds and commercial papers issued by an Indian company, as per terms and conditions specified by the Reserve Bank.”
(ii) In paragraph 2 of Schedule 1 to the Principal Regulation, the existing clause (4A) shall be substituted by the following:
“(4A) The amount of consideration paid by persons resident outside India for their purchases in terms of sub-paragraph (E) of paragraph 1 of this Schedule shall be out of funds held in their rupee account maintained in terms of regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016.”
Link – Foreign Exchange Management (Debt Instruments) (Fourth Amendment) Regulations, 2025
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