Sections 47 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Where the Act says "specified", the detail sits in regulations made by the Reserve Bank under section 47. Section 47(1) gives the general power, section 47(2) lists subjects, and section 47(3) keeps older Reserve Bank regulations on capital account transactions alive. Section 48 requires every rule and regulation to be laid before Parliament for a total of thirty days.
Section 47(1) lets the Reserve Bank make regulations by notification to carry out the Act and the rules. Section 47(2) lists subjects in clauses (a) to (h), with (ga): debt instruments, the export declaration, the period and manner of repatriation, the limits in section 9 and the export, import or holding of currency or currency notes. "Specified" means specified by regulations (section 2(zd)). Section 48 requires every rule and regulation to be laid before each House for thirty days. The limits and periods are in the regulations, not in the Act.
About this article
This article is based on the consolidated text of the Act consulted (amendments shown up to Act 50 of 2019). Later amendments should be checked. The footnotes show that clause (a) of section 47(2) was substituted, and clause (ga) and sub-section (3) inserted, by Act 20 of 2015, s. 144 (w.e.f. 15-10-2019). Section 48 is printed without a footnote. This article does not set out the content of any regulation. For borrowing from abroad in practice, see our ECB reporting service, and read the current regulations alongside it.
Section 47(1): the general power
The Reserve Bank may, by notification, make regulations to carry out the provisions of the Act and the rules made thereunder. Notice the extra words compared with the Central Government's power in section 46(1): the Bank's regulations carry out the Act and the rules. "Specify" means to specify by regulations made under the Act (section 2(zd)), and "Reserve Bank" means the Reserve Bank of India (section 2(z)).
Section 47(2) begins "Without prejudice to the generality of the foregoing power", so the list is illustrative, and clause (h) closes it with "any other matter which is required to be, or may be, specified".
Section 47(2): the clauses, one by one
| Clause | Subject of the regulations | Section served |
|---|---|---|
| (a) | The permissible classes of capital account transactions involving debt instruments determined under section 6(7), the limits of admissibility of foreign exchange for such transactions, and the prohibition, restriction or regulation of such transactions | Section 6 |
| (b) | The manner and the form in which the declaration is to be furnished | Section 7(1)(a) |
| (c) | The period within which and the manner of repatriation of foreign exchange | Section 8 |
| (d) | The limit up to which any person may possess foreign currency or foreign coins | Section 9(a) |
| (e) | The class of persons and the limit up to which a foreign currency account may be held or operated | Section 9(b) |
| (f) | The limit up to which foreign exchange acquired may be exempted | Section 9(d) |
| (g) | The limit up to which foreign exchange acquired may be retained | Section 9(e) |
| (ga) | Export, import or holding of currency or currency notes | Not tied to a named section |
| (h) | Any other matter which is required to be, or may be, specified | Throughout |
Reading the clauses in groups
Debt instruments: clause (a). After the 2015 amendment (in force from 15-10-2019 per the footnote), the Reserve Bank's regulation-making power over capital account transactions covers only those involving debt instruments determined under section 6(7). Capital account transactions that do not involve debt instruments are for the Central Government's rules under section 46(2)(ab). The split is explained in our article on section 6. The Foreign Exchange Management (Debt Instruments) Regulations, 2019, as amended from time to time, are made under section 6(2)(a) and section 47; the Act prints nothing of their content.
Exports and repatriation: clauses (b) and (c). Clause (b) is the hook for the manner and form of the export declaration under section 7(1)(a); our post on export realisation under section 7 covers that section. Clause (c) is the hook for the period and manner of repatriation under section 8; see our article on section 8.
The section 9 limits: clauses (d) to (g). Four limits sit behind four of the clauses of section 9: possession of foreign currency or coins (d), the class of persons and limit for a foreign currency account (e), the limit up to which foreign exchange acquired may be exempted (f) and the limit up to which it may be retained (g). The Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015, as amended from time to time, are made under section 9 and section 47(2)(e). Our article on section 9 explains the exemption itself; the Act prints no limit for any of the four.
Currency: clause (ga). The export, import or holding of currency or currency notes. The clause is not tied to a particular section in the text.
Section 47(3): older Reserve Bank regulations
All regulations made by the Reserve Bank before the date on which the provisions of this section are notified under section 6 and section 47 of the Act on capital account transactions, the regulation-making power in respect of which now vests with the Central Government, continue to be valid until amended or rescinded by the Central Government.
Printing point: the sub-section reads "notified under section 6 and section 47 of this Act", as printed. The sense is clear enough: the Reserve Bank's earlier capital account regulations remain valid until the Central Government amends or rescinds them. Two limits of the saving follow from the words: it covers regulations on capital account transactions only, and it speaks of the power that "now vests with the Central Government".
Section 48: laying before Parliament
Every rule and regulation made under the Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions. If, before the expiry of the session immediately following the session or the successive sessions, both Houses agree in making any modification in the rule or regulation, or both Houses agree that the rule or regulation should not be made, it shall thereafter have effect only in such modified form or be of no effect, as the case may be. Any modification or annulment is without prejudice to the validity of anything previously done under it.
The same pattern appears for notifications under section 40(3); see our article on sections 40 and 41. Section 45(2) uses a simpler "laid before each House" for removal-of-difficulty orders.
| Feature | Rules (section 46) | Regulations (section 47) |
|---|---|---|
| Made by | The Central Government | The Reserve Bank |
| Word in the Act | "Prescribed" | "Specified" |
| Laid before Parliament | Section 48 | Section 48 |
| Mapped in our article | Section 46 | This article |
Example. A hypothetical exporter, Sandstone Crafts Pvt Ltd, wants to know the period within which export proceeds must be repatriated. Section 8 refers to the period "as may be specified", and the hook is section 47(2)(c), so the answer is in the regulations made by the Reserve Bank, not in the Act. Likewise, the limit under section 9 for retaining foreign exchange acquired is "specified" under section 47(2)(g). If either regulation were modified by both Houses under section 48, anything done under it before the modification would stay valid.
What the Act does not say
- It does not print any limit, period, form or fee for the subjects in section 47(2).
- It does not say which regulations are in force today; that must be checked against the current regulations.
- It does not say when the provisions mentioned in section 47(3) were notified; the footnotes give 15-10-2019 for the 2015 amendments.
Need help with the regulations behind a transaction?
Borrowing, repatriation and the section 9 limits all end in a regulation, and regulations are amended from time to time. Our ECB reporting team can help you trace the regulation that applies and the reporting that follows.
Key takeaways
- Section 47(1): the Reserve Bank may make regulations by notification to carry out the Act and the rules.
- Section 47(2) lists subjects in clauses (a) to (h), with (ga): debt instruments, the export declaration, repatriation, the section 9 limits and currency.
- "Specified" means specified by regulations (section 2(zd)).
- Section 47(3) keeps the Reserve Bank's earlier capital account regulations valid until the Central Government amends or rescinds them.
- Section 48: every rule and regulation is laid before each House for thirty days; modification or annulment does not undo what was done.
Read next
- Section 46: power of the Central Government to make rules
- Section 8: realisation and repatriation of foreign exchange
- Section 9: exemption from realisation and repatriation
- Repatriation Rules Under FEMA: Complete Guide
Disclaimer: Based on a consolidated text of the Foreign Exchange Management Act, 1999 showing amendments up to Act 50 of 2019, as consulted on 2 October 2026. Limits, forms, timelines and procedures are set by rules, regulations and Reserve Bank directions made under the Act; they change from time to time and are not covered here. Later amendments should be checked. This article is general information, not legal advice; check the official text before acting.