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Manner of Receipt and Payment from Person Resident outside India

Reserve Bank of India (RBI) has issued guidelines on manner of receipt and payment from a person resident outside India.

Manner of Receipt and Payment from a Person Resident outside India

The receipt and payment between a person resident in India and a person resident outside India shall be made through an Authorised Bank or Authorised Person and in the manner specified below –

Trade transactions 

Receipt / payment for export / import of eligible goods and services shall be made as under –

Countries Manner of Receipt and Payment
Nepal and Bhutan In Indian Rupees.
Where the importer in Nepal has been permitted by the Nepal Rashtra Bank to make payment in foreign currency, receipts towards the export to Nepal may be in foreign currency.
Member countries of Asian Clearing Union (ACU), other than Nepal and Bhutan Payments from a resident in the territory of one participant country to a resident in the territory of another participant country, through ACU mechanism.
In the wake of signing of Memorandum of Understanding (MoU) between RBI and Maldives Monetary Authority in November 2024 for establishing a framework to promote the use of local currencies i.e., Indian Rupee (INR) and Maldivian Rufiyaa (MVR) for bilateral transactions, India’s bilateral trade transactions with Maldives may also be settled in INR and / or MVR in addition to the ACU mechanism.

All other transactions, in a manner specified for ‘Countries other than member countries of ACU’.
Countries other than member countries of ACU In Indian Rupees or in any foreign currency.

Transactions other than trade transactions 

Receipt and payment shall be made as under –

Countries Manner of Receipt and Payment
Nepal and Bhutan In Indian Rupees.
In case of overseas investment in Bhutan, payment may also be made in foreign currency.
Other Countries In Indian Rupees or any foreign currency.

Current account transaction other than a trade transaction 

Purpose of transaction Manner of Receipt and Payment
Payment and receipt in India from person resident outside India, who is on a visit to India. Only in Indian Rupees.


References

Reserve Bank of India. (2023, December 21). 'Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12579&Mode=0

Reserve Bank of India. (2025, March 17). 'Asian Clearing Union (ACU) Mechanism – Indo-Maldives trade'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12792&Mode=0

Reserve Bank of India. (2025, February 10). 'Foreign Exchange Management (Manner of Receipt and Payment) (Amendment) Regulations, 2025'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12779&Mode=0


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