Rules And Regulation of Foreign

Exchange
1. Dealings in foreign exchange.
No person shall:-
1. Deal in or transfer any foreign exchange or foreign security
to other person.
2. Make payment to person resident outside of India (PRO).
3. Receive payment on behalf of PRO.
 Holding Foreign Exchange..

• No person resident of India (PRI) shall hold , acquire , hold ,

own ,etc
1. Any Foreign exchange.
2. Any Foreign security.
3. Any immovable property.
 Capital account transaction..
• Transaction which leads to change in assets and liabilities
outside India of PRI.
• Transaction which leads to change in Assets and Liabilities in
India of PRO.

Current Account transaction..

• Transaction that do not fall under capital account transaction
are current account transaction.
• Example :- Selling Foreign exchange to authorised person.
 Realisation and Repatriation of Foreign
Exchange.
• A PRI whose payment is due or has accured should take
reasonable steps to repatriate back to India.
• An Unspent foreign exchange should be surrendered to a
authorized person within 90 days or 180 days.
• It can be done by :- 1. Selling.
2. Holding.
3. Using.
 Export Goods and Services…

• Every exporter should provide a document true and correct

material in response of the payment of services within 21
days of export.
• Full export value should be maintained in the declaration and
if full export value is uncertain then expected value is used.
• Full export value should be repatriated to India within 12
months of date of export.