RBI’s 2025 FEMA amendments allow exporters to hold overseas foreign currency accounts with strict reporting and repatriation obligations.
Overseas Foreign Currency Accounts for Exporters: Regulatory Update
Amendments to FEMA regulations in 2025 permit Indian exporters to open and operate foreign currency accounts overseas, subject to Authorised Dealer bank approval and stringent compliance requirements.
These accounts facilitate smoother trade settlements but mandate timely repatriation of export proceeds within the revised nine-month window. Account holders must submit periodic statements to AD banks and disclose end-use of funds. Any deviation may attract scrutiny under FEMA’s anti-avoidance provisions.
The liberalisation balances operational convenience with exchange control. Advising exporters on compliance — including EDPMS reporting, audit trails, and record retention — is critical to avoid enforcement actions.
Citations
- FEMA (Opening and Maintenance of Foreign Currency Accounts) Regulations, 2025