Rbi Rationalises Fema Norms To Improve Ease Of Business

With an expect to advance simplicity of doing business, the Reserve Bank recently turned out with nine overhauled regulations under the Foreign Exchange Management Act (FEMA), 1999.

Therefore, RBI said, respective original notifications and subsequent amendments stand repealed.

“Keeping in perspective the target of advancing ease of doing business, a need was felt to solidify the regulations and justify them in light of developing business environment and changing practices in cross-border transactions relating to external trade and payments,” RBI said.

For simple recognizable proof, amended regulations will carry same numbers as the old ones with a suffix ‘(R)’, alongside the year in which these are distributed or published.

The FEMA, established in 1999 with 25 original notifications, came into power with effect from June 1, 2000. Over the years, the regulations encircled under the FEMA have had more than 330  amendments.

The revised regulations come into power on the date of their publication in the Gazette of India as indicated in respective regulations.


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