New norms for cross border receipt and payment mechanism

Brief Overview:

RBI introduces the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 (“Regulations”) specifying the payment and receipt mechanism for trade and non-trade related transactions. The Regulations will supersede the earlier regulations on the subject matter.

Technical Details:

The Regulations have specified the manner in which persons resident in India shall make or receive payment from a person resident outside India.
Key transaction channels and manner of remittance are provided below:

Transaction Channel Receipt/payment to or from Nepal and Bhutan Receipt/payment to or from member countries of Asian Clearing Union (“ACU”) Receipt/payment to or from other countries
Trade Transactions (for export or import) Indian Rupees*


Through ACU mechanism or as per RBI directions* Indian Rupees or any foreign currency*
Non-Trade Transactions Indian Rupees* Please refer to the next column Indian Rupees or any foreign currency*

For any current account transactions, between any person resident in India and a person resident outside India, who is on a visit to India, may be made only in Indian Rupees.

JC takeaway: 

These Regulations specifically streamline the manner of payment and receipt for any current account transaction in India, other than a trade transaction, between any person resident in India and a person resident outside India, who is on a visit to India.

For further details, please see:

For any queries / clarifications, please feel free to ping us and we will be happy to chat

● Mr. Saurabh Sharma (
● Ms. Rupul Jhanjee (

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