The Foreign Exchange Department of the Reserve Bank Of India ( RBI ) through Notification No. FEMA 10 (R)/(4)/2024-RB brought certain amendments to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2024. This was the (Fourth Amendment) to the rule.
RBI through the latest notification amended Regulation 5, wherein the explanation to the existing sub-regulation E shall be substituted as “Explanation: For the purpose of this sub-regulation a ‘startup’ will mean an entity recognised as a startup by the Department for Promotion of Industry and Internal Trade pursuant to notification number G.S.R. 127(E) dated February 19, 2019, and as amended from time to time.”
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An important modification brought on Schedule I of Exchange Earner’s Foreign Currency ( EEFC ) Account Scheme. The explanation to para 1 (vii) of Schedule I shall be substituted as “Explanation: For the purpose of this schedule a ‘startup’ will mean an entity recognised as a startup by the Department for Promotion of Industry and Internal Trade pursuant to notification number G.S.R. 127(E) dated February 19, 2019, and as amended from time to time.”
The amendment focused on aligning the regulations with evolving economic needs, facilitating international transactions, and ensuring compliance with global standards. The amendment will provide greater flexibility to individuals in managing foreign earnings and conducting international transactions.
The Principal Regulations were published in the Official Gazette of Government of India –Section 3, Sub-Section (i) dated 21.01.2016 – G.S.R.No. 96(E) and subsequently amended as through G.S.R. No.570(E) dated 01.06.2016 , G.S.R. 160(E) dated 27.02.2019 and Notification No. FEMA. 10R(3)/2024-RB dated April 19, 2024
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