The Reserve Bank of India (RBI) on May 06, 2024, issued the Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024 to further amend Foreign Exchange Management (Deposit) Regulations, 2016.
The following has been stated namely: -
• Regulation 7 which states ‘Other deposits made or held by authorised dealer’ the following new sub-regulation shall be inserted, namely: -
“6) An authorised dealer in India may allow a person resident outside India to open, hold and maintain an interest-bearing account in Indian Rupees and/or foreign currency for the purpose of posting and collecting margin in India, for a permitted derivative contract entered into by such person in terms of Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020, dated October 23, 2020, as amended from time to time, subject to directions issued by the Reserve Bank in this regard.”
This shall come into force on May 06, 2024.
[Notification No. FEMA 5(R)/(4)/2024-RB]
