Module: General Practice
Q17: Under the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 (and subsequent 2025 amendments), which of the following is the standard permissible mode for receipt of export proceeds?
✅ Correct Answer: C
Permissible Modes of Receipt: Regulations mandate that export proceeds must be received through legitimate banking channels.
General Rule: Receipt in freely convertible currency.
Special Accounts: Debit to FCNR/NRE account of the buyer maintained in India.
ACU Mechanism: For ACU member countries (like Bangladesh, Sri Lanka, Myanmar, etc.), receipts must be routed through the ACU mechanism (Dollar/Euro accounts). Note: Singapore and Japan are NOT ACU members, making Option B incorrect.
Nepal/Bhutan: Receipts are generally in INR, with specific exceptions for hard currency.
General Rule: Receipt in freely convertible currency.
Special Accounts: Debit to FCNR/NRE account of the buyer maintained in India.
ACU Mechanism: For ACU member countries (like Bangladesh, Sri Lanka, Myanmar, etc.), receipts must be routed through the ACU mechanism (Dollar/Euro accounts). Note: Singapore and Japan are NOT ACU members, making Option B incorrect.
Nepal/Bhutan: Receipts are generally in INR, with specific exceptions for hard currency.