The meaning of Non-Repatriable basis means the sale or the result of the proceeds of the sale,...
Any person who is resident in India to whom any amount of foreign exchange is due or has accrued shall, except according to the extent of specific provisions made under Foreign Exchange Management Act, 1999 (FEMA), Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015 or any rules or with specific permission of the Reserve Bank of India (RBI), take all reasonable steps in realisation and repatriation of foreign exchange to India. That person shall in no case do or refrain from doing any or take or refrain from taking any action which has the effect of securing-
A person is deemed to have repatriated all the realised foreign exchange to Indian when the person has received payment in India in Rupees from the account of a bank or an exchange house in any country that is situated outside India and which is maintained with an authorised dealer.
Section 8 of the FEMA provides that where any amount of foreign exchange is due or is accrued to any person resident in India, then it is the responsibility of that person to make all reasonable efforts to realise and repatriate to India such foreign exchange within a specific time period and in such manner as has been specified by the RBI.
Regulation 3 of the Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015 further provide that e person resident in India should refrain from taking any action which results in delay in receipt of foreign exchange in whole or in part or stops in whole or in part the foreign exchange to be received by him.
For example if a person resident in India exports develops a software product and sells the same to a company resident outside India. If the person to whom he sold the product is untraceable, then it becomes the responsibility of the seller to make all reasonable efforts to recover from resident outside Indian or otherwise report about the same to RBI.
Once a person has realised an amount of foreign exchange which is due, it shall be his duty to repatriate such foreign exchange in India i.e. bring into or receive in India and –
It must be noted that the due foreign exchange amount means an amount which a person has a right to claim or right to receive in foreign exchange.
Section 9 of FEMA talks about the provisions related to the exemptions related to realisation and repatriation of foreign exchange in certain cases. Following are the cases where there is no need to repatriate the foreign exchange fund to India:
India has always suffered from lack of foreign exchange and in response to that RBI has framed rules which mandate that any person whose amount in foreign exchange is due or accrued, then it should make all the efforts to for realisation and repatriation of foreign exchange and make all reasonable efforts that such amount is not delayed or stopped in any manner. This amount is subject to the limits and exemptions provided by RBI in FEMA.
Read our Article:A Detailed Review of Foreign Exchange Management Act 1999