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The Reserve Bank of India ('RBI') has, by way of a Notification dated October 6, 2025, amended the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 ('2015 Regulations'). The following changes have been carried out pursuant to the amendment:
i. in Regulation 2 of the 2015 Regulations, the definition of International Financial Services Centre ('IFSC') has now been linked to the International Financial Services Centres Authority Act, 2019; and
ii. the erstwhile Regulation 5(CA) of the 2015 Regulations, has been substituted to state that a person (exporter) resident in India, may open, hold and maintain a foreign currency account with a bank outside India (or even in an IFSC), for realisation of full export value and advance remittance received by such exporter towards export of goods or services. Accordingly, funds in this account may be utilised by the exporter for paying for its imports into India or repatriated into India within a period not exceeding the end of: (a) three months in case of accounts maintained with banks in an IFSC; or (b) next month for all other jurisdictions, from the date of receipt of the funds after adjusting for forward commitments, provided that the realisation and repatriation requirements are in accordance with the 2015 Regulations. Prior to the amendment, the exporters did not have the facility to open a foreign currency account in an IFSC.
Originally published 30 January 2026
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