RBI Revises Payment Rules Between ACU Member Countries Under FEMA 14(R)(1) For Cross-Border Transactions

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Full Text of the Document

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....RBI amended the Foreign Exchange Management (Manner of Receipt and Payment) Regulations 2023 through notification FEMA 14(R)(1)/2025-RB. The amendment modifies Regulation 3(2)(I)(a)(ii) regarding payments between ACU member countries. Under the revised provision, transactions between residents of ACU participant countries must be conducted through the ACU mechanism or as per RBI directions to authorized dealers. For transactions with ACU members except Nepal and Bhutan, payments shall follow the specified manner for other transactions. The amendment aims to streamline cross-border payment mechanisms within ACU member territories while maintaining regulatory oversight of foreign exchange transactions. The regulations take effect upon official gazette publication.....