In recent years, foreign exchange regulations in India have been liberalised to ease the flow of funds into and out of the country. This has been done to encourage foreign investments and facilitate trade-related transactions.
These regulations in India are governed by the Foreign Exchange Management Act (‘FEMA’) and the Regulations thereunder. The apex body on these matters in India is the Reserve Bank of India (‘RBI’) which regulates the law and is responsible for all key approvals.
FEMA is an important legislation which impacts foreign nationals who are working in India and Indians who have gone outside India and/or want to invest outside India. It is important to be compliant with the foreign exchange regulations.
