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Realisation and repatriation of foreign exchange [ Section 8 ] - FEMA Ready Reckoner - FEMAExtract Realisation and Repatriation of foreign exchange Statutory provisions As per Section 8 of FEMA Act,1999 Save as otherwise provided in this Act, where any amount of foreign exchange is due or has accrued to any person resident in India , such person shall take all reasonable steps to realise and repatriate to India such foreign exchange within such period and in such manner as may be specified by the Reserve Bank. Statutory provisions are contained in Regulation of Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015; Exception :- Nothing in these regulations shall apply to foreign exchange in the form of currency of Nepal or Bhutan. [ Regulation 8 ] As per Section 2(n) of FEMA Act,1999 , state that Foreign Exchange means foreign currency and includes,- (i) deposits, credits and balances payable in any foreign currency, (ii) drafts, travellers cheques, letters of credit or bills of exchange, expressed or drawn in Indian currency but payable in any foreign currency, (iii) drafts, travellers cheques, letters of credit or bills of exchange drawn by banks, institutions or persons outside India, but payable in Indian currency; Section 8 read with the relevant regulations imposes certain obligation on exporters. In terms of such obligations, exporters are required to take all reasonable steps to realise and repatriate the export proceeds within the prescribed period and in such manner as may be specified by the reserve bank. Regulation of Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015 prescribe the manner of realisation and repatriation of Foreign Exchange. Regulation 8 and 9 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 specify respectively, the manner of payment of export value of goods and the period within which the export value of goods/services is to be realised. In terms of the Regulation 13 of the said Regulation, expect with the permission of the Reserve Bank or subject to the directions of the Reserve Bank or permission of an authorised dealer, the exporter shall not do anything or refrain from doing anything or take or refrain from, reducing or ceasing the repatriation of the full export value. Regulation 3 and 4 of the [ upto 19 Dec. 2023 Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 ] w.e.f 20 Dec. 2023 Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 prescribe the manner of receiving the payment for the exported goods and services.
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