Can a company keep forex in hand

Hi Dear,

As per Foreign Exchange Management (Realisation, repatriation and surrender of foreign
exchange) Regulations, 2000 (Notification No.FEMA 9 /2000-RB dated 3rd May 2000),

No person including a company can keep foreign exchange beyond a specified time limit .

Regulation 4 to 6 sets out clear provisions in this regard.

Regulation 6(2) : Notwithstanding anything contained in sub-regulation (1), where the foreign exchange
acquired or purchased by any person from an authorised person is for the purpose of
foreign travel, then, the unspent balance of such foreign exchange shall, save as otherwise
provided in the regulations made under the Act, be surrendered to an authorised person -
(i) within ninety days from the date of return of the traveller to India, when the unspent
foreign exchange is in the form of currency notes and coins; and

(ii) within one hundred eighty days from the date of return of the traveller to India, when
the unspent foreign exchange is in the form of travellers cheques.

The regulations can be referred on https://rbidocs.rbi.org.in/rdocs/notification/PDFs/13259.pdf

regards

Adv Naveen Bhardwaj

9871158855

No, either an individual or a company can't keeo forex on hand beyond reasond. more navneet has explained propery.

thanks