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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 Through ACU mechanism.
Where the goods are shipped to India from a member country of the ACU (other than Nepal and Bhutan) but the supplier is resident of a country other than a member country of the ACU, the payment may be made 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


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