RBI amends Manner of Receipt and Payment under FEMA (Manner of Receipt and Payment) (Second Amendment) Regulations, 2020

The Reserve Bank of India (RBI) has amended the manner of receipt and payment under Foreign Exchange Management (Manner of Receipt and Payment) (Second Amendment) Regulations, 2020.

The Reserve Bank of India (RBI) has notified the Foreign Exchange Management (Manner of Receipt and Payment) (Second Amendment) Regulations, 2020 whereby Regulation 3 and 5 have been amended.

The Notification was issued in the name of Chief General Manager-in-Charge, Mr. Ajay Kumar Misra and the regulation came to be known as Foreign Exchange Management (Manner of Receipt and Payment) (Second Amendment) Regulations, 2020 which amended the principal Act namely Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016.

The amendments were made mainly in 2 regulations of the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016, which were as follows:

1. Regulation 3(1)(A) the word “Member of Asian Clearing Union (ACU)” was substituted. In the sub-Clause (a) of Clause (i) of Regulation 3(1)(A) the following was substituted: “Receipt for export of eligible goods and services by debit to the ACU Dollar account and/or ACU Euro account and/or ACU Japanese Yen account in India of a bank of the member country in which the other party to the transaction is resident or by credit to the ACU Dollar account and/or ACU Euro Account and/or ACU Japanese Yen account of the authorized dealer-maintained with the correspondent bank in that member country.”

2. Regulation 5(1)(A) the word “Member of Asian Clearing Union (ACU)” was substituted. In the sub-Clause (a) of Clause (i) of Regulation 5(1)(A) the following was substituted: