Section 8 FEMA 1999 - Realisation and Repatriation of Foreign Exchange

Section 8 of the Foreign Exchange Management Act, 1999 places a statutory duty on a person resident in India when foreign exchange is due or has accrued to that person. Subject to FEMA and the applicable rules, regulations and permissions, reasonable steps must be taken to realise the foreign exchange and repatriate it to India within the period and in the manner specified by the Reserve Bank of India.

Text of Section 8 of FEMA

Section 8 - Realisation and repatriation of foreign exchange

Save as otherwise provided in this Act, where any amount of foreign exchange is due or has accrued to any person resident in India, such person shall take all reasonable steps to realise and repatriate to India such foreign exchange within such period and in such manner as may be specified by the Reserve Bank.

What Section 8 Means

The section applies when foreign exchange is legally due or has accrued to a person who is resident in India for FEMA purposes. It does not merely require receipt of the money. It also requires compliance with the applicable RBI framework governing realisation and repatriation.

Foreign exchange must be due or accrued: the obligation arises where the resident has a right or entitlement to receive foreign exchange.
The person must be resident in India: FEMA residence is determined under the statutory definition in Section 2(v), not merely by citizenship or nationality.
Reasonable steps are required: a resident should not deliberately delay receipt or take action that causes the foreign exchange to cease to be receivable.
Repatriation must comply with RBI requirements: the relevant period and manner depend on the nature of the foreign exchange and the regulations or directions applicable to the transaction.

Important Definitions

Person resident in India

Section 2(v) of FEMA contains the statutory definition of a "person resident in India". The definition uses the prescribed residence test and also contains specific rules for persons who leave India, come to India, and for bodies corporate, offices, branches and agencies. Residence under FEMA should therefore be examined from the facts and statutory conditions applicable to the relevant period.

Foreign exchange due

The Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015 describe "foreign exchange due" as an amount which a person has a right to receive or claim in foreign exchange.

Realisation and repatriation

In practical terms, realisation concerns obtaining the foreign exchange that is receivable, while repatriation concerns bringing the realised foreign exchange into the Indian foreign exchange system in the manner permitted or required under FEMA and RBI regulations. The precise compliance route can differ according to the transaction.

RBI Regulations Relevant to Section 8

Section 8 expressly leaves the period and manner of realisation and repatriation to the Reserve Bank. The Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015 remain an important part of this framework. They require a resident to take reasonable steps to realise and repatriate foreign exchange due and prohibit conduct intended to delay receipt or make the amount cease to be receivable, subject to FEMA, applicable rules and regulations, and RBI permissions.

For export and import transactions, the regulatory framework must also be read with the current RBI rules governing export and import of goods and services. RBI issued the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, and an amendment to the export regulations was notified in June 2026. Transaction-specific timelines and procedures should therefore be checked against the current RBI notification or direction rather than an older historical export rule.

Practical note: Section 8 states the general statutory duty. It does not itself prescribe one universal time limit for every kind of foreign exchange receivable. The applicable RBI regulation, direction, permission and nature of the transaction determine the relevant compliance period and manner.

Relationship with Sections 7 and 9

Section 7 of FEMA contains obligations relating to export of goods and services, including declarations and information connected with export value and proceeds. Section 8 supplies the broader duty to realise and repatriate foreign exchange due to a resident in India.

Section 9 of FEMA provides specified exemptions from Sections 4 and 8. Accordingly, Section 8 must always be read subject to the exemptions contained in the Act and other valid permissions or regulatory provisions.

Consequences of Contravention

A failure to comply with FEMA, or with a rule, regulation, notification, direction or order issued under FEMA, may attract the adjudication and penalty framework under Section 13, depending on the facts and the provision contravened. Questions of liability should be assessed with reference to the specific transaction, applicable RBI framework and any available permission, extension, write-off or exemption.

Official Sources

Updated: 27 September 2026. This page is a general legal information resource. Current RBI notifications, directions, permissions and transaction-specific facts should be checked before acting.