Regulation 5 - Manner of payment in foreign exchange - Foreign Exchange Management (Manner of Receipt And Payment) Regulations, 2000

5. Manner of payment in foreign exchange :- (1) A payment in foreign exchange by an authorised dealer, whether by way of remittance from India or by way of reimbursement to his branch or correspondent outside India 2 [***] against payment for import into India, or against any other payment, shall be as mentioned below: Group Manner of payment (1) member countries of Asian Clearing Union 4 [(except Nepal, Bhutan and Islamic Republic of Iran)] namely, 5 [Bangladesh,] Myanmar, 6 [Pakistan, Sri Lanka and Republic of Maldives] /9a) Payment for all eligible current transactions by credit to the 7 [Asian Clearing Union dollar account and or Asian Clearing Union euro account] in India of a bank of the member country in which the other party to the transaction is resident or by debit to the 7 [Asian Clearing Union dollar account and or Asian Clearing Union euro account] of an authorised dealer with the correspondent bank in the other member country; and (b) payment in any permitted currency in other cases 8 [(1A) Nepal and Bhutan Payment in accordance with the provisions of Notification No. FEMA 17/2000-RB, dated May 3,2000 , as amended from time to time (1B) Islamic Republic of Iran (a) Payment for all eligible current transactions, in any permitted currency and in accordance with the directions issued by the Reserve Bank to the authorized dealers from time to time; and (b) Payment in any permitted currency in all other cases.] 9 [(2) All countries other than those mentioned in (1), (1A) and (1B)] (a) payment in rupees to the account of a resident of any country other than a member country of Asian Clearing Union or 10 [Nepal or Bhutan or Islamic Republic of Iran]; or (b) payment in any permitted currency 1 (1A) In respect of imports into India from Myanmar, payment may be made in any freely convertible currency or through the ACU mechanism to Myanmar. (2) In respect of import into India, (a) where the goods are shipped from a member country of Asian Clearing Union (other than Nepal) but the supplier is resident of a country other than a member country of Asian Clearing Union, payment may be made in a manner specified for countries in Group (2) of Regulation 5 ; (b) in all other cases, payment shall be made in a currency appropriate to the country of shipment of goods. 12 [ (c) Any other mode of payment in accordance with the directions issued by the Reserve Bank of India to authorised dealers from time to time.] 11 [(3) Authorized Dealer Category-1 (AD Category-1) banks have been permitted to allow payments to be made for import of goods/software to a Third party (a party other than the supplier) subject to conditions as stipulated by Reserve Bank of India.] ************************* Note : 1. Has been inserted vide Notification No. 128/2005 dated 11/1/2005 2. Omitted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 27th day of December 2010 , before it was read as, (other than Nepal and Bhutan) 3. Substituted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. Ist day of June 2000 before it was read as, (except Nepal ), 4. Substituted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 27th day of December 2010 before it was read as, 3 [(except Nepal and Bhutan)] 5. Substituted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 27th day of December 2010 before it was read as, Bangladesh, Islamic Republic of Iran, 6. Substituted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 30th day of October 2009 before it was read as, Pakistan and Sri Lanka 7. Substituted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 26th day of December 2008 before it was read as, Asian Clearing Union dollar account , 8. Inserted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 27th day of December 2010 9. Substituted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 27th day of December 2010 before it was read as, (2) All countries other than those mentioned in (1) , 10. Substituted vide NOTIFICATION No. 257/2013-RB February 15, 2013 w.e.f. 27th day of December 2010 before it was read as, Nepal or Bhutan , 11. Inserted vide Not.318/RB-2014 - Dated 4-9-2014 w.e.f.November 8, 2013 12. Inserted vide Not. 357/2015-RB - Dated 7-12-2015