What changed
Previously, surrender periods varied: 7 days for certain receipts, 90 days for others, 60 days for unused purchased forex, and 90/180 days for travel-related unspent balances. Now, resident individuals have a uniform 180-day window for all such surrenders to authorized persons. Other cases (non-individuals) remain under existing regulations.
What it means for you
Banks and authorized dealers must update their compliance systems to accept surrender of foreign exchange from resident individuals within 180 days, regardless of the earlier category. This simplifies customer handling and reduces confusion over multiple deadlines. However, for non-individual entities, the old timelines still apply, so careful segregation is needed.
What you must do
- Update internal procedures and staff training to apply the uniform 180-day surrender period for all resident individual customers.
- Revise customer-facing communications and forms to reflect the new single timeline for surrender of foreign exchange.
- Ensure systems differentiate between resident individuals and other entities to apply correct surrender periods.
- Monitor compliance with the unchanged regulations for non-individual cases and maintain audit trails.
Who it affects
Authorized dealers in foreign exchange, Resident individual customers, Banks handling foreign exchange transactions, Compliance and operations teams at AD banks
Does the 180-day uniform period apply to all types of foreign exchange receipts for resident individuals?
Yes, for resident individuals, the 180-day period covers received, realized, unspent, or unused foreign exchange from the date of receipt, realization, purchase, acquisition, or return of traveler, as applicable.
Are non-resident individuals or corporate entities covered by this circular?
No, this circular specifically applies to resident individuals only. For all other cases, the existing regulations and directions on surrender requirements remain unchanged.
What should an authorized person do if a resident individual surrenders forex after 180 days?
The circular does not specify penalties for late surrender. Authorized persons should follow existing FEMA provisions and may seek RBI guidance for cases beyond the prescribed period.