What changed
The Government of India amended the Foreign Exchange Management (Current Account Transactions) Rules, 2000 via Notification G.S.R. 512(E) dated July 28, 2005. Schedule I heading was changed from '(see Rule 3)' to 'Transactions which are Prohibited (see rule 3)'. Schedule II heading was changed from '(see Rule 4)' to 'Transactions which require prior approval of the Central Government (see Rule 4)'.
What it means for you
This is a purely cosmetic amendment to improve clarity of the rule text. It does not alter any prohibited transactions or prior approval requirements. Banks and customers face no change in compliance obligations.
What you must do
- Update internal reference copies of FEMA Current Account Transaction Rules with the new Schedule headings.
- Inform AD Category-I bank staff about the amendment for accurate customer guidance.
- No change in transaction processing or approval procedures required.
Who it affects
All Authorised Dealer Category-I banks, Compliance and legal teams handling FEMA matters
Does this amendment add any new prohibited transactions?
No. It only renames Schedule I and II headings for clarity. The list of prohibited transactions and those requiring prior approval remains unchanged.
When did this amendment take effect?
It came into force on July 28, 2005, the date of publication in the Official Gazette.