RBI replaces few older FEMA norms with revised regulations to improve ease of business

New Delhi: The Reserve Bank of India (RBI), in consultation with the Government of India, has announced revisions to nine regulations originally issued under the Foreign Exchange Management Act, 1999 (FEMA). These revisions, to be identified by the same number as the old ones but with the suffix ‘(R)’, will replace the original regulations and the subsequent amendments till date. RBI’s aim to revise the regulations is to consolidate the regulations, rationalise them to match the evolving business environment and changing practices in cross-border transactions, thereby improving the ease of doing business. The revised regulations will come into effect on the date of their publication in the Gazette of India as indicated in respective regulations. The FEMA was enacted in 1999 with 25 original notifications, which came into force with effect from June 1, 2000. Since then, the regulations have had over 330 amendments.

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