The Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Seventh Amendment) Regulations, 2025 amend the 2015 principal regulations to include a definition for “International Financial Services Centre (IFSC)” as per the International Financial Services Centres Authority Act, 2019. The amendment allows Indian exporters to open, hold, and maintain foreign currency accounts with banks outside India, including those located in IFSCs, for the purpose of receiving full export value or advance remittances for goods or services. The funds in such accounts may be used for making import payments into India or must be repatriated to India within three months for accounts maintained in IFSCs, or by the end of the next month for accounts in other jurisdictions, after adjusting for forward commitments. It further clarifies that foreign currency accounts permitted to be opened “outside India” or “abroad” may also be opened in an IFSC.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12916&Mode=0
