The Reserve Bank of India (RBI) has simplified the Foreign Exchange Management Regulations, by putting all the 93 amendments under one notification.
- This step will make it easier for foreign investors to invest in the country.
- The new notification combines two regulations on foreign investments: one which is popularly called investment in an Indian company or a partnership, or in a limited liability partnership, or FEMA 20, and the other — FEMA 24, which is investment in a partnership firm.
- Another significant change is the introduction of a late submission fee that could allow an investor to regularise any contravention due to non-reporting, by paying the fee.
- “It is going to impact in a very big manner because 60-70% of the contravention cases which RBI receives are due to delays in reporting,
- Any transfer of investment from non-resident Indians to any non-residents has been brought under the automatic route
- The Foreign Exchange Management Act (FEMA), introduced in 1999, was amended 93 times.
