Foreign exchange rules, gathered in one place

Authorised Persons include your bank, standalone primary dealers, and recognised stock exchanges.

named by the words Authorised Dealer · RBI Preamble §5 · Read it in place

Your bank must classify every user as retail or non-retail before offering forex derivatives.

named by the words foreign exchange · RBI Section I §2.1(i) · Read it in place

Retail users may only be offered basic forwards, swaps, and European options.

named by the words foreign exchange · RBI Section I §2.2(ii) · Read it in place

Your bank must give retail users the mid-market mark before they sign a derivative deal.

named by the words foreign exchange · RBI Section I §2.4(v) · Read it in place

A user can hedge up to USD 100 million without proving the underlying exposure exists.

named by the words Authorised Dealer · RBI Section I §2.4(i) · Read it in place

Your board must set an appropriate policy and fix limits for treasury functions.

named by the words Authorised Dealer · RBI Part C §1 · Read it in place

Only a bank with an IFSC Banking Unit may trade non-deliverable derivative contracts.

named by the words Authorised Dealer · RBI Part C §3A · Read it in place

The Net Overnight Open Position Limit may not exceed 25 per cent of total capital.

named by the words Authorised Dealer · RBI Annex I A.i · Read it in place

The Aggregate Gap Limit may not exceed six times the bank's total capital.

named by the words Authorised Dealer · RBI Annex I B.i · Read it in place

Your bank may hold foreign currency balances only up to levels the board approves.

named by the words Authorised Dealer · RBI Part C §4(i) · Read it in place

Your bank needs an ALCO-approved policy on which yield curve it uses, applied consistently.

named by the words Authorised Dealer · RBI Annex I A.2 Note · Read it in place

ALCO or Internal Audit must monitor how these forex limits are used and followed.

named by the words Authorised Dealer · RBI Annex I A.5(i) · Read it in place

Report doubtful hedge cancellations by non-resident clients to RBI every quarter.

named by the words Authorised Dealer · RBI Part E A(xiii) · Read it in place

Send daily FTD and GPB turnover reports to RBI by the following working day.

named by the words Foreign Exchange · RBI Part E A(i) · Read it in place

Send quarterly foreign exchange exposure details to RBI by the 30th of next month.

named by the words foreign exchange · RBI Part E A(iv) · Read it in place

Send weekly option-transaction reports to RBI by the first working day of next week.

named by the words Authorised Dealer · RBI Part E A(v) · Read it in place

Report total overseas foreign-currency borrowings to RBI by the 10th of each month.

named by the words Authorised Dealer · RBI Part E A(vi) · Read it in place

Report inter-bank INR forex deals to the Trade Repository within thirty minutes each hour.

named by the words foreign exchange · RBI Part E B(i)(a) · Read it in place

Report inter-bank non-INR forex deals made by 5pm to the Trade Repository by 5:30pm.

named by the words foreign exchange · RBI Part E B(i)(b) · Read it in place

Report client foreign exchange derivative deals to the Trade Repository before noon next day.

named by the words Foreign exchange · RBI Part E B(i)(d) · Read it in place

This rulebook comes from a Government of India rule made under FEMA in 2000.

named by the words Foreign Exchange · RBI Preamble · Read it in place

RBI also issues its own directions to Authorised Persons under a separate FEMA section.

named by the words Foreign Exchange · RBI Preamble para 2 · Read it in place

RBI addresses this whole rulebook to every Authorised Person dealing in foreign exchange.

named by the words Foreign Exchange · RBI Preamble · Read it in place

These facilities sit inside the 250,000 dollar-a-year Liberalised Remittance Scheme.

named by the words Liberalised Remittance · RBI Para 3 · Read it in place

Going over that limit needs the Reserve Bank's own prior permission.

named by the words foreign exchange · RBI Para 3 · Read it in place

A resident gets 180 days to hand back unused foreign exchange to a bank.

named by the words foreign exchange · RBI Para 3.1.3 · Read it in place

Prepaid travel card refunds are allowed only after 10 days from the last use.

named by the words foreign exchange · RBI Para 3.4.5 · Read it in place

Commission to sale agents abroad is capped at 25,000 dollars, or five per cent of the remittance.

named by the words inward remittance · RBI Para 4.2 · Read it in place

No foreign exchange may be released for travel to Nepal or Bhutan.

named by the words foreign exchange · RBI Para 1.3 · Read it in place

Sending money abroad for any lottery scheme is banned outright.

named by the words Foreign Exchange · RBI Para 1.4 · Read it in place

International credit cards may not be used for payments in Nepal or Bhutan.

named by the words foreign exchange · RBI Para 3.4.1 · Read it in place

bank that handles foreign money banks must get Form A2 for every cross-border remittance, whatever its size.

named by the words Authorised Dealer · RBI Para 6.5 · Read it in place

bank that handles foreign money banks must still follow ordinary tax law on every remittance they process.

named by the words Authorised Dealer · RBI Para 7 · Read it in place

bank that handles foreign money banks may sell forex for embassy-run school fees without asking RBI first.

named by the words foreign exchange · RBI Para 4.5 · Read it in place

Residents may pay and receive foreign exchange on Government-authorised global bids.

named by the words foreign exchange · RBI Para 4.7 · Read it in place

bank that handles foreign money banks may release royalty payments under tech tie-ups without a separate Commerce Ministry nod.

named by the words foreign exchange · RBI Para 4.9 · Read it in place

bank that handles foreign money banks may release forex for buying a trademark or franchise without RBI's approval.

named by the words foreign exchange · RBI Para 4.10 · Read it in place

RBI addresses this whole rulebook to every Authorised Dealer Category-I bank.

named by the words Authorised Dealer · RBI Preamble · Read it in place

This rule uses FEMA's own definitions of resident and non-resident.

named by the words Foreign Exchange · RBI Para 1.4 · Read it in place

This rulebook comes from a 1999 law and a year-2000 regulation on rupee borrowing.

named by the words Foreign Exchange · RBI Preamble · Read it in place

A bank may lend an NRI rupees against shares or property, but not farmland.

named by the words authorised dealer · RBI Para 3.1 · Read it in place

The NRI repays from abroad, from a non-resident account, or by selling the pledged shares.

named by the words inward remittance · RBI Para 3.1 · Read it in place

A bank may lend an NRI rupees for other purposes too, under its own board-approved policy.

named by the words authorised dealer · RBI Para 3.1 · Read it in place

A loan to buy ESOP shares must follow the bank's board policy and RBI's capital-market norms.

named by the words authorised dealer · RBI Para 3.2 · Read it in place

The employee repays from abroad or from their own non-resident account.

named by the words inward remittance · RBI Para 3.2 · Read it in place

The lender's yearly LRS remittance limit also caps how much they can lend this way.

named by the words Liberalised Remittance · RBI Para 6 · Read it in place

The NRI relative repays from abroad or from their own NRO, NRE or FCNR(B) account.

named by the words inward remittance · RBI Para 6 · Read it in place

If the borrower moves abroad, the bank may let the loan run to its original maturity.

named by the words authorised dealer · RBI Para 7.1 · Read it in place

After that move, repayment must come from abroad or the borrower's own non-resident account.

named by the words inward remittance · RBI Para 7.1 · Read it in place

A bank may give its own foreign branch a temporary rupee overdraft of up to five hundred lakhs.

named by the words authorised dealer · RBI Para 8 · Read it in place

This ceiling of five hundred lakhs adds up overdrafts across every branch, correspondent and head office abroad.

named by the words authorised dealer · RBI Para 8 · Read it in place

Your bank may open an EEFC account for a resident's foreign exchange earnings.

named by the words foreign exchange · RBI Part I §3.1 · Read it in place

100 percent of a customer's inward remittance earnings may be credited to EEFC.

named by the words foreign exchange · RBI Part I §3.1 · Read it in place

Residents may open an RFC account for pension, inheritance or similar foreign income.

named by the words foreign exchange · RBI Part I §3.2 · Read it in place

SEZ units may hold a foreign currency account for their foreign exchange funds.

named by the words foreign exchange · RBI Part I §3.10 · Read it in place

A student's foreign account becomes an LRS account once studies finish and they return.

named by the words Liberalised Remittance · RBI Part I §4.2 · Read it in place

NRIs and PIOs may open NRE rupee accounts with your bank.

named by the words authorised dealer · RBI Part II §4.1 · Read it in place

Your bank may lend against NRE deposits without any limit, subject to margin rules.

named by the words Authorised Dealer · RBI Part II §4.8.1 · Read it in place

Any non-resident may open an NRO account for rupee transactions in India.

named by the words Authorised Dealer · RBI Part II §6.1 · Read it in place

Offer a nomination facility to individual deposit holders.

named by the words Authorised dealer · RBI Part II §13 · Read it in place

Report an unresolved overdraft to RBI if it isn't cleared within five days.

named by the words Foreign Exchange · RBI Part III §1.6(i) · Read it in place

Extra credit beyond the overdraft cap needs the Reserve Bank's prior approval.

named by the words Foreign Exchange · RBI Part III §1.6(ii) · Read it in place

The scheme does not cover any purpose the current account rules prohibit outright.

named by the words Foreign Exchange · RBI Para 13 · Read it in place

The loan money may not be remitted outside India.

named by the words inward remittance · RBI Para 18(77) · Read it in place

The remitter must give Form A2 to buy foreign exchange under the scheme.

named by the words foreign exchange · RBI Para 15 · Read it in place

The dealer must take a declaration showing the deal does not evade the foreign exchange law.

named by the words foreign exchange · RBI Para 19(5) · Read it in place

RBI issues these directions to authorised persons under the Foreign Exchange Management Act.

named by the words Foreign Exchange · RBI Opening paragraphs · Read it in place

This book gathers RBI's instructions on money a resident individual may send abroad.

named by the words Liberalised Remittance · RBI Opening paragraphs · Read it in place

A resident may open a foreign currency account with a bank outside India.

named by the words Foreign Exchange · RBI Para 6 · Read it in place

Buying immovable property abroad is a permitted capital account use.

named by the words Foreign Exchange · RBI Para 6 · Read it in place

A person leaving for employment abroad may draw the yearly limit from an authorised dealer.

named by the words foreign exchange · RBI Para 7 · Read it in place

That loan counts inside the same yearly limit as every other remittance.

named by the words Liberalised Remittance · RBI Para 18(77) · Read it in place

Payment must come by inward remittance or by debit to a non-resident account.

named by the words inward remittance · RBI Para 3(77) · Read it in place

The price must have been paid in foreign exchange or from a non-resident account.

named by the words foreign exchange · RBI Para 8(5) · Read it in place

This book says who living outside India may buy, hold or sell property in India.

named by the words Foreign Exchange · RBI Opening paragraphs · Read it in place

Buying property outside India follows the overseas investment rules, not this book.

named by the words Foreign Exchange · RBI Opening paragraphs · Read it in place

Either may inherit property from a person living outside India who held it lawfully.

named by the words foreign exchange · RBI Para 3(77) · Read it in place

Property so acquired may be mortgaged to an authorised dealer against a borrowing.

named by the words Authorised Dealer · RBI Para 7 · Read it in place

Loan repayments made from abroad count as foreign exchange for this purpose.

named by the words foreign exchange · RBI Para 8(5) · Read it in place

It also covers sale proceeds of shares, land or any other asset held in India.

named by the words Foreign Exchange · RBI Para 2.1 · Read it in place

RBI addresses this whole rulebook to bank that handles foreign money Category-I banks and authorised banks.

named by the words Authorised Dealer · RBI Preamble · Read it in place

This rulebook comes from RBI's own regulation on remitting assets out of India.

named by the words Foreign Exchange · RBI Preamble · Read it in place

RBI also issues its own directions to Authorised Persons under a separate FEMA section.

named by the words Foreign Exchange · RBI Preamble para 2 · Read it in place

An Authorised Dealer is a person RBI has authorised under FEMA section 10(1).

named by the words Authorised Dealer · RBI Para 2.4 · Read it in place

The bank that handles foreign money bank must make sure tax law requirements are met before remitting.

named by the words Authorised Dealer · RBI Para 5 · Read it in place

It also covers joint accounts, medical bills, deposits, IFSC rules and foreign assets.

named by the words Foreign Exchange · RBI Para 9 · Read it in place

Banks must follow tax rules on their own, apart from FEMA.

named by the words Authorised Dealer · RBI Para 1 · Read it in place

Banks must turn an unused foreign currency deposit into Indian Rupees.

named by the words Authorised Dealer · RBI Para 7 · Read it in place

No FEMA case can be brought if Black Money Act tax and penalty were already paid.

named by the words Foreign Exchange · RBI Para 9 · Read it in place

Investors may keep and reinvest income earned under the Liberalised Remittance Scheme.

named by the words Liberalised Remittance · RBI Para 2 · Read it in place

Transactions with an IFSC entity follow the same FEMA rules as any non-resident deal.

named by the words Foreign Exchange · RBI Para 8 · Read it in place

This Master Direction is written for the banks licensed to handle foreign exchange.

named by the words Authorised Dealer · RBI Introductory letter · Read it in place

The bank must ensure imports match the government's Foreign Trade Policy in force.

named by the words Authorised Dealer · RBI Section I · Read it in place

A CEO or auditor certificate can stand in for the Bill of Entry if the remittance is under USD 1,000,000.

named by the words foreign exchange · RBI Section C.7.2 · Read it in place

A merchanting trade must be finished within nine months, with the money out for no more than six months.

named by the words foreign exchange · RBI Section C.14.1 · Read it in place

Foreign exchange for travel may be sold for cash only below Rs.50,000; above that it must be non-cash.

named by the words foreign exchange · RBI Section V Para 5 · Read it in place

Settlement between authorised dealers and FFMCs must never be made in cash.

named by the words authorised dealer · RBI Section V Para 11 · Read it in place

An airport's departure-hall forex counter must sit before the Customs desk or immigration, whichever comes first.

named by the words Foreign Exchange · RBI Section V Para 24 · Read it in place

During elections, cash movement must be carried by an authorised person with documents proving it, on request.

named by the words foreign exchange · RBI Annex Para A · Read it in place

An authorised dealer bank must bring these rules to the notice of the customers concerned.

named by the words authorised dealer · RBI Opening paragraphs · Read it in place

RBI issued them under sections 10(4) and 11(1) of the Foreign Exchange Management Act.

named by the words Foreign Exchange · RBI Opening paragraphs · Read it in place

Only a bank licensed as an authorised dealer of the first category may permit these hedges.

named by the words Authorised Dealer · RBI Para 2 · Read it in place

The list of acceptable jurisdictions is specified by the foreign exchange dealers association.

named by the words foreign exchange · RBI Para 7 · Read it in place

It also covers banks that handle these insurance payments.

named by the words authorised dealer · RBI Para 3.6 · Read it in place

A returning OCI can buy a forex policy only using money sent from abroad.

named by the words authorised dealer · RBI Para 4.2 · Read it in place

An export insurance claim is paid only once the exporter's forex receipt is confirmed.

named by the words foreign exchange · RBI Para 3.6 · Read it in place

An Indian Agent cannot send any money from India back to the Overseas Principal.

named by the words outward remittance · RBI Para 1 · Read it in place

Only an Authorised Dealer, a money changer, a scheduled bank or the post office may apply.

named by the words Authorised Dealer · RBI Para 3 · Read it in place

Every Indian Agent must send RBI its yearly audited accounts and a certificate on its own funds.

named by the words Foreign Exchange · RBI Para 9 · Read it in place

FCNR(B) loans cannot exceed 25 per cent of an SPD's NOF.

named by the words foreign exchange · RBI Para 110 · Read it in place

SPDs must hedge at least 50 per cent of that FCNR exposure at all times.

named by the words foreign exchange · RBI Para 110 · Read it in place

The SPD's Board must approve its own foreign exchange policy.

named by the words foreign exchange · RBI Para 150 · Read it in place

A bank dealing in foreign exchange must count those rupee flows in its liquidity statement.

named by the words Authorised Dealer · RBI Para 37 · Read it in place

A bank authorised to deal in foreign exchange must set gap limits and use a value at risk approach.

named by the words foreign exchange · RBI Para 45 · Read it in place

The work gives a moving frame for measuring and managing liquidity, interest rate and forex risk.

named by the words foreign exchange · RBI Para 15 · Read it in place

On the automatic route the authorised dealer bank examines the case itself.

named by the words Authorised Dealer · RBI Para 2 · Read it in place

A bank may borrow abroad up to the whole of its unimpaired tier one capital.

named by the words authorised dealer · RBI Para 6 · Read it in place

Authorised dealer banks handle export deals in line with the Foreign Trade Policy and RBI's directions.

named by the words Authorised dealer · RBI Para A.1 · Read it in place

Banks report every incoming export payment, advances included, into the tracking system.

named by the words inward remittance · RBI Para C.2 · Read it in place

FEMA can let a bank's dealing desk trade in foreign exchange derivatives. That desk then counts as a market-maker.

named by the words Foreign Exchange · RBI Para 2 · Read it in place

Simple, short-tenor foreign exchange forwards and options up to 13 months skip this extra due diligence.

named by the words foreign exchange · RBI Para 5 · Read it in place

The bank freezes new money to that entity until the late report is filed.

named by the words outward remittance · RBI Para 19 · Read it in place

Filing online needs three separate people: a maker, a checker, and an approver.

named by the words Authorised dealer · RBI Para 28(1) · Read it in place

Authorised Dealer banks and Scheduled Commercial Banks are covered too, where stated.

named by the words Authorised Dealer · RBI Para 3 · Read it in place

A PA-CB may buy or sell foreign currency only through an Authorised Dealer.

named by the words Authorised Dealer · RBI Para 11 · Read it in place

The institution must build a framework for measuring liquidity, interest rate and foreign exchange risk.

named by the words foreign exchange · RBI Para 13 · Read it in place

Rupee inflows and outflows from foreign exchange business go into the same statement.

named by the words foreign exchange · RBI Para 37 · Read it in place

A bank authorised to deal in foreign exchange must set gap limits. It must also use a value at risk approach.

named by the words Authorised Dealer · RBI Para 34 · Read it in place

The board sets limits for liquidity, interest rate, foreign exchange and equity price risk.

named by the words foreign exchange · RBI Para 7 · Read it in place

LEI rules cover most trading in government bonds, money markets, foreign exchange and derivatives.

named by the words foreign exchange · RBI Para 4(1) · Read it in place

For simple foreign exchange deals, LEI is only needed above one million US dollars.

named by the words foreign exchange · RBI Para 4(2) · Read it in place

Housekeeping is covered: account reconciliation, control ledgers and internal account openings.

named by the words Foreign Exchange · RBI Para 11(5) · Read it in place

Treasury, non fund based business and foreign exchange all fall inside the audit.

named by the words Foreign Exchange · RBI Para 11(6) · Read it in place

Housekeeping is covered: account reconciliation, control ledgers and internal account openings.

named by the words Foreign Exchange · RBI Para 11(4) · Read it in place

Treasury, non fund based business and foreign exchange all fall inside the audit.

named by the words Foreign Exchange · RBI Para 11(5) · Read it in place

Housekeeping is covered: account reconciliation, control ledgers and internal account openings.

named by the words Foreign Exchange · RBI Para 11(5) · Read it in place

Treasury, non fund based business and foreign exchange all fall inside the audit.

named by the words Foreign Exchange · RBI Para 11(6) · Read it in place

Housekeeping is covered: account reconciliation, control ledgers and internal account openings.

named by the words Foreign Exchange · RBI Para 11(5) · Read it in place

Treasury, non fund based business and foreign exchange all fall inside the audit.

named by the words Foreign Exchange · RBI Para 11(6) · Read it in place

These rules apply to all Authorised Dealer Category I banks.

named by the words Authorised Dealer · Read it in place

The Master Direction on reporting under the Foreign Exchange Management Act will be revised for these changes.

named by the words Foreign Exchange · Read it in place

Any person living outside India may open and keep an SNRR account.

named by the words authorised dealer · RBI Para 3(4) · Read it in place

Transfer from NRO to SNRR is an allowed credit within the stated limit.

named by the words Foreign Exchange · RBI Para 4 · Read it in place

Money can come in as remittances or transfers from other rupee accounts.

named by the words inward remittance · RBI Para 5 · Read it in place

This circular is issued under sections 10(4) and 11(1) of FEMA.

named by the words Foreign Exchange · RBI Para 9 · Read it in place

This circular goes to every Authorised Dealer Category-I bank.

named by the words Authorised Dealer · RBI Opening paragraphs · Read it in place

RBI issued this under the Foreign Exchange Management Act.

named by the words Foreign Exchange · RBI Para 3 · Read it in place

A sending bank must flag direct account transfers as foreign inward remittances.

named by the words inward remittance · RBI Para 4 · Read it in place

Only up to Rs.50,000 from an individual inward MTSS remittance may be loaded into a full-KYC PPI.

named by the words inward remittance · RBI Para 8.2 · Read it in place

A non-resident may invest only as much as FEMA rules allow.

named by the words Foreign Exchange · RBI Para 4 · Read it in place

A resident, or an eligible non-resident investor, may deal in bond forwards.

named by the words Foreign Exchange · RBI Para 3 · Read it in place

Compounding lets someone pay a penalty to settle a FEMA violation instead of facing full legal proceedings.

named by the words foreign exchange · RBI Para 1 · Read it in place

Eligible instruments include securities, money instruments, forex instruments and derivatives RBI names.

named by the words foreign exchange · RBI Para 2 · Read it in place

Send that licence request to RBI's Foreign Exchange Department in Mumbai.

named by the words Foreign Exchange · RBI Para 34 · Read it in place

The system must measure and manage liquidity, interest rate, equity and currency risk.

named by the words foreign exchange · RBI Para 12 · Read it in place

These rules are read together with the foreign exchange department's guidelines.

named by the words Foreign Exchange · RBI Para 15 · Read it in place

The system must give a full and moving frame for measuring and managing these risks.

named by the words foreign exchange · RBI Para 14 · Read it in place

Only a bank authorised under the foreign exchange law may take these deposits.

named by the words Foreign Exchange · RBI Para 23 · Read it in place

Credit, liquidity, interest rate, market, foreign exchange and solvency risk.

named by the words foreign exchange · RBI Para 27 · Read it in place

The consortium leader with the largest exposure watches borrowers' unhedged foreign currency risk.

named by the words foreign exchange · RBI Para 57 · Read it in place

A Board resolution is needed before applying for a foreign exchange dealer licence.

named by the words foreign exchange · RBI Para 7 · Read it in place

The acquirer may keep facilities like the authorised dealer licence if it holds 9 per cent capital on RBI's path to 12.

named by the words authorised dealer · RBI Para 17(2) · Read it in place

A bank authorised to deal in foreign exchange must set gap limits. It must also use a value at risk approach.

named by the words foreign exchange · RBI Para 36 · Read it in place

Only a bank authorised under the foreign exchange law may take these deposits.

named by the words Foreign Exchange · RBI Para 25 · Read it in place

Only a bank authorised under the foreign exchange law may take these deposits.

named by the words Foreign Exchange · RBI Para 25 · Read it in place

Only a bank authorised under the foreign exchange law may take these deposits.

named by the words Foreign Exchange · RBI Para 25 · Read it in place

Each trade goes to interest rate, foreign exchange or credit by its main risk driver.

named by the words foreign exchange · RBI Para 12(7) · Read it in place

Securitising exposures of an overseas branch must not breach FEMA or its rules.

named by the words Foreign Exchange · RBI Para 6 · Read it in place

If net worth on conversion falls below the minimum capital, the shortfall must be brought in upfront.

named by the words inward remittance · RBI Para 5(3) · Read it in place

An entity with foreign investment must follow India's FDI and forex rules.

named by the words foreign exchange · RBI Para 8 · Read it in place

Head office treasury work, from investments and funds management to foreign exchange, must be under concurrent audit.

named by the words foreign exchange · RBI Para 11(1) · Read it in place

The dealer must ensure the third party issues an invoice to the customer for each transaction.

named by the words foreign exchange · RBI Para 3 · Read it in place

External commercial borrowing terms will continue as per the February 09, 2026 borrowing and lending regulations.

named by the words Foreign Exchange · Read it in place

Banks can open a repatriable rupee account for such non-resident investors for Schedule III investments.

named by the words Foreign Exchange · Read it in place

Authorised Dealer Category-I banks must send daily data by 6 p.m. on these deposits and borrowings.

named by the words Authorised Dealer · Read it in place

Full fledged money changers must keep full and correct records of every foreign exchange deal they do.

named by the words foreign exchange · Read it in place

The private travel facility does not cover visits to Nepal and Bhutan.

named by the words foreign exchange · RBI Para 7 · Read it in place

Companies may donate up to one per cent of past forex earnings, or 5,000,000 dollars.

named by the words foreign exchange · RBI Para 4.1 · Read it in place

NRO balances may be repatriated abroad by NRIs and PIOs up to USD 1 million.

named by the words Foreign Exchange · RBI Part II §6.8 · Read it in place