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<h1>Foreign exchange definition covers foreign currency, deposits and negotiable instruments under FEMA guidance in the ready reckoner framework.</h1> The definition of foreign exchange under the Foreign Exchange Management Act encompasses foreign currency and related monetary instruments, including deposits, credits and balances and negotiable instruments such as drafts, travellers cheques, letters of credit and bills of exchange, whether expressed or payable in foreign currency or drawn outside the country but payable domestically; this ready reckoner clarifies that these categories fall within the statutory concept of foreign exchange for regulatory and compliance purposes.
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