FEMA 1999 (Foreign Exchange Management Act)

FEMA, 1999, requires exporters to repatriate export proceeds within 9 months to avoid penalties up to three times the amount involved.

2-Minute Read Content: FEMA, 1999, regulates India’s $800B forex market, and exporters must comply to avoid penalties up to three times the transaction amount.

• Rule 1: Repatriate export proceeds within 9 months (RBI rule).

• Rule 2: Use EEFC accounts to hold up to 100% forex earnings, saving conversion costs.

• Rule 3: File SoftEx forms for service exports over $25,000.

• Rule 4: Avoid unauthorized forex dealers to prevent legal risks.

• Rule 5: Leverage INR vostro accounts for trade with 18 countries. Non-compliance can halt operations.