The Reserve Bank of India (RBI) on January 15, 2025, issued the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Third Amendment) Regulations, 2025, to further amend the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019.
This shall come into force from January 15, 2025.
The following has been stated namely: -
• In regulation 3.1 which states the Instructions on Mode of Payment and Remittance of sale proceeds, the existing provision at Sl. No. I, II, VI, VII, VIII, and IX shall be substituted.
• Regulation 3.2 which states the Issue of Convertible Notes by an Indian start-up company, shall be substituted.
• After sub-regulation 3.2, the following paragraph shall be inserted, namely;
“Explanation: For the purpose of these regulations, “banking channels” shall include any rupee vostro accounts, including Special Rupee Vostro Accounts, permitted to be held by a person resident outside India, in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016."
Detailed notification is attached below.
[Notification no. - FEMA 395(3)/2025-RB]
