Section 3(1) in The Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016
(1)Every receipt in foreign exchange by an authorized dealer, whether by way of remittance from a foreign country or by way of reimbursement from his branch or correspondent outside India against payment for export from India, or against any other payment, shall be as mentioned below:(A)[Members of the Asian Clearing Union (ACU)] [Substituted 'Members of the Asian Clearing Union' by Notification No. FEMA 14(R)/(2)/2020-RB, dated 04.03.2020 (w.e.f. 2.5.2016).](i)Bangladesh, Myanmar, Pakistan, Sri Lanka & Republic of Maldives -(a)[Receipt for export of eligible goods and services by debit to the ACU Dollar account and/ or ACU Euro account and/or ACU Japnese Yen account in India of a bank of the member country in which the other party to the transaction is resident or by credit to the ACU Dollar account and/ or ACU Euro Account and /or ACU Japnese Yen account of the authorized dealer maintained with the correspondent bank in that member country;] [Substituted by Notification No. FEMA 14(R)/(2)/2020-RB, dated 04.03.2020 (w.e.f. 2.5.2016).](b)Receipt may also be made in any freely convertible currency in all other cases.(c)In respect of exports from India to Myanmar, payment may be received in any freely convertible currency or through ACU mechanism from Myanmar.(ii)Nepal and Bhutan -(a)Receipt may be in Rupees(b)Receipts for export of goods to Nepal may be made in free foreign exchange, provided the importer resident in Nepal has been permitted by the Nepal Rashtra Bank to make payment in free foreign exchange. However such receipts shall not be routed through the ACU mechanism.(iii)Islamic Republic of Iran(a)Receipt for export of eligible goods and services, in any freely convertible currency and/ or in accordance with the directions issued by the Reserve Bank to the authorized dealers from time to time.(b)Receipt in any freely convertible currency and/ or in accordance with the directions issued by the Reserve Bank to the authorized dealers from time to time in all other cases.(B)All countries other than those mentioned in A above(i)Receipt in rupees from the account of a bank situated in any country other than a member country of the Asian Clearing Union.(ii)Receipt in any freely convertible currency.
