Skip to main content

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


Follow at - Telegram   Instagram   LinkedIn   X   Facebook

Labels:

Comments

Post a Comment

Popular Posts

Credit Facilities – Lending against Gold and Silver Collateral

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to lending against gold and silver collateral. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) Non-Banking Financial Companies (NBFCs) for all layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro Finance Institutions (NBFC-MFI)  NBFC-Infrastructure Finance Company (NBFC-IFC)  Infrastructure Debt Fund-NBFC (IDF-NBFC)  Housing Finance Company (HFC)  To whom are the directions partially applicable? The prudential regulations are not applicable to ‘NBFCs-B...
Post a Comment
Read more

Credit Facilities – Digital Lending Guidelines

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to digital lending. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export Import Bank of India (EXIM Bank) National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) National Bank for Financing Infrastructure and Development (NaBFID) Non-Banking Financial Companies (NBFCs) for all layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro...
Post a Comment
Read more

Guidelines on Money Changing Activities (Updated as on May 06, 2026)

Reserve Bank of India (RBI) has updated the guidelines on money changing activities. What are the guidelines for appointment of agents / franchisee? RBI had permitted Authorised Dealers (ADs) Category - I, ADs Category - II and Full Fledged Money Changers (FFMCs) to enter into agency or franchisee agreements at their option for the purpose of carrying restricted money changing business i.e. conversion of foreign currency notes, coins or travellers' cheques into Indian Rupees (INR).  A franchisee can be any entity which has a place of business and a minimum Net Owned Funds of ₹10 lakh.  Franchisees can undertake only restricted money changing business. Franchisees of AD Category - I / AD Category - II / FFMCs functioning within 10 kms from the borders of Pakistan and Bangladesh may also sell the currency of the bordering country, with the prior approval of RBI.  Other franchisees of AD Category - I / AD Category - II / FFMCs cannot sell foreign currency. An authorised pers...
Post a Comment
Read more

Regulations for Authorised Persons

Reserve Bank of India (RBI) has issued a revised framework for authorisation of any person as an Authorised Person under the Foreign Exchange Management Act (FEMA), 1999. Who can act as an Authorised Person? No person shall act as an authorised person without obtaining an authorisation from the RBI. A person seeking authorisation as an authorised person may apply to the RBI through the PRAVAAH portal (https://pravaah.rbi.org.in) to the regional office concerned of the RBI under whose jurisdiction the registered office of the applicant is established. RBI shall consider applications for fresh authorisation under 3 categories, namely, Authorised Dealer (AD) Category-I, AD Category-II and AD Category-III. Which entities are eligible to act as an Authorised Person? Category Eligible entities AD Category-I A bank licensed by the RBI. AD Category-II A bank licensed by the RBI or a Non-Banking Financial Company (NBFC) registered with the RB...
Post a Comment
Read more

Credit Facilities – Microfinance Loans

Reserve Bank of India (RBI) has issued directions on credit facilities offered by various regulated entities. This article summarises the directions applicable to microfinance loans. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) Non-Banking Financial Companies (NBFCs) for all layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro Finance Institutions (NBFC-MFI)  NBFC-Infrastructure Finance Company (NBFC-IFC)  Infrastructure Debt Fund-NBFC (IDF-NBFC)  Housing Finance Company (HFC)  To whom are the directions partially applicable? The prudential regulations are not applicable to ‘NBFCs-Base Layer (NBFC-BL) havi...
Post a Comment
Read more