Foreign Exchange Management Act (FEMA)

Exemptions

Circumstances where holding and repatriation of foreign exchange is "exempted" from FEMA rules
In following circumstances, the provisions of FEMA will not apply with regard to Holding and Repatriation of Foreign Exchange:

1. Possession of foreign currency or foreign coins by any person upto such limit as the Reserve Bank may specify.
2. Foreign currency account held or operated by such person or class of persons and the limit upto, which the Reserve Bank specifies.
3. Foreign Exchange acquired or received before the 8th day of July 1947 or any income arising or accruing thereon, which is held outside India by any person in pursuance of a general or special permission granted by the Reserve Bank.
4. Foreign Exchange held by a person resident in India upto such limit as the Reserve Bank may specify, if such foreign exchange was acquired by way of gift or inheritance from a person who acquired or received it before 8th of July 1947 or if the income has occurred to him, which was held outside India in pursuance of a general or special permission granted by the Reserve Bank.
5. Foreign Exchange acquired from employment, business, trade vocation, services, honorarium, gifts, inheritance or any other legitimate means upto such limit as the Reserve Bank may specify.
6. Such other receipt in foreign Exchange as the Reserve Bank may specify.