Section 5(1) in The Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016
(1)A payment in foreign exchange by an Authorized Dealer, whether by way of remittance from India or by way of reimbursement to his branch or correspondent outside India against payment for import into India, or against any other payment, shall be as mentioned below :(A)[Members of 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)[Payment for import of eligible goods and services by credit to 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 debit 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)Payment may also be made in any freely convertible currency in all other cases.(c)In respect of imports to India from Myanmar, payment may be made in any freely convertible currency or through ACU mechanism from Myanmar.(ii)Nepal and Bhutan - Payment may be in Rupees(iii)Islamic Republic of Iran(a)Payment for import 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)Payment 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)Payment in rupees from the account of a bank situated in any country other than a member country of the Asian Clearing Union(ii)Payment in any freely convertible currency.
