Overview

• Authorised dealer banks in India and their overseas branches may now lend in Indian Rupees to residents of Bhutan, Nepal and Sri Lanka, including banks, to facilitate cross-border trade.
• The Reserve Bank of India amended the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 and the Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015.
• Unutilised balances in foreign-currency accounts maintained with a bank in the IFSC in India may be repatriated within up to three months.
• January 2025 rules let exporters hold foreign-currency accounts abroad with unutilised balances due by the end of the month following realisation, while the new relaxation specifically covers IFSC accounts.
• The measures were outlined in the October 1 bi-monthly monetary policy and are now confirmed through formal regulatory changes.