Section 8 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.
Section 8 puts a duty on residents who are owed foreign exchange: they must take all reasonable steps to realise it and repatriate it to India, within the period and in the manner the Reserve Bank specifies. The section is one sentence, and it depends on the definition of "repatriate to India" in section 2(y). This article explains both, leaves section 7 to its own post, and does not state any period, because the Act leaves it to regulations.
Where foreign exchange is due or has accrued to a person resident in India, that person must take all reasonable steps to realise and repatriate to India the amount, within such period and in such manner as may be specified by the Reserve Bank. "Specified" means specified by regulations (hook: section 47(2)(c)). The duty applies save as otherwise provided in the Act, notably the exemptions in section 9.
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. Section 8 and clause (y) of section 2 carry no amending footnote in the copy consulted. If you have overseas receivables and want to check how this duty applies to you, our FEMA advisory team can help.
The text of section 8
Section 8: "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."
| Phrase | Meaning |
|---|---|
| "Save as otherwise provided in this Act" | The duty gives way to exceptions in the Act; section 9 expressly says sections 4 and 8 do not apply to the cases it lists |
| "due or has accrued" | Both amounts that are payable and amounts that have already accrued are covered |
| "any person resident in India" | Section 2(v), including companies incorporated in India |
| "all reasonable steps" | An obligation of effort and diligence; the Act does not list the steps |
| "realise and repatriate to India" | Two linked acts: realising the money and then bringing it to India as defined in section 2(y) |
| "within such period and in such manner as may be specified by the Reserve Bank" | Detail left to regulations under section 47(2)(c) |
"Repatriate to India" under section 2(y)
Section 2(y) defines "repatriate to India" as bringing into India the realised foreign exchange and:
- (i) the selling of such foreign exchange to an authorised person in India in exchange for rupees; or
- (ii) the holding of the realised amount in an account with an authorised person in India to the extent notified by the Reserve Bank,
and it includes use of the realised amount for discharge of a debt or liability denominated in foreign exchange. The expression "repatriation" is to be construed accordingly.
Three consequences follow from the definition.
- Bringing in is the base act. The foreign exchange is brought into India; what happens next is described in (i) and (ii).
- Two routes. The money is either sold to an authorised person for rupees, or held in an account with an authorised person in India to the extent the Reserve Bank notifies. The Act does not state any extent.
- Set-off against a foreign-exchange liability. The closing words recognise that realised foreign exchange may be used to discharge a debt or liability denominated in foreign exchange. The Act does not set out conditions for this.
An "authorised person" is defined in section 2(c); our article on the transaction terms of section 2 covers that clause.
"Reasonable steps": a duty of effort, not a guarantee of result
The duty is to take all reasonable steps. The Act does not say what makes a step reasonable, and does not say what follows if a step fails despite diligence. Whether steps taken were reasonable is a question of facts. This article does not discuss any decision or circular on the point, because the Act is the only source used here.
Example. Pioneer Handicrafts Private Limited, resident in India, has sold goods to a buyer abroad and the amount is due. The buyer delays. Section 8 requires the company to take all reasonable steps to realise and repatriate the amount within the period and in the manner specified by the Reserve Bank. The company should keep a record of its follow-up and read the Reserve Bank's regulations for the period that applies; the Act does not give it.
"Within such period and in such manner as may be specified"
The Act leaves both the period and the manner to the Reserve Bank. Section 2(zd) defines "specify" as to specify by regulations made under the Act. Section 47(2)(c) is the matching hook: regulations may provide for "the period within which and the manner of repatriation of foreign exchange under section 8". The Act itself prints no number of days or months, and no steps. The period and manner must be taken from the regulations as in force and from any Reserve Bank directions.
How section 8 relates to section 7
Section 7 deals with the exporter's declaration and the Reserve Bank's directions to ensure that the full export value is received without delay. Section 8 is wider, since it covers any amount of foreign exchange due or accrued to a resident, whether from exports or any other source. Our post on export realisation under section 7 explains the first, and it is not repeated here. For the practical side of export proceeds, see our guide on export proceeds under FEMA; the facts in that guide are not the source of anything stated here.
Exceptions: section 9
Section 9 says that sections 4 and 8 do not apply to the cases it lists, such as possession of foreign currency or coins up to a limit the Reserve Bank specifies, and foreign exchange acquired before the 8th day of July, 1947 held outside India under permission, among other cases. The full list and its hooks in section 47(2) are in our article on section 9. Because section 8 opens with "save as otherwise provided in this Act", those exemptions sit outside the duty.
Consequences of not repatriating
Section 8 states the duty. The consequences of a contravention are in section 13, which has its own post; see our guide on contravention and penalties under section 13. The Act's section 13 deals with contravention of any provision, any rule, regulation, notification, direction or order made under the Act, so a failure to follow the specified period or manner is within its scope. This article does not state any penalty amounts.
What the Act does not say
- It does not give a period for realisation or repatriation.
- It does not list the permitted manners of repatriation, apart from the two in section 2(y).
- It does not define "realise".
- It does not say how a resident documents the steps taken.
Need help with receivables from abroad?
If amounts are overdue from overseas customers or other sources, the first step is to read the period and manner that apply to you in the Reserve Bank's regulations and directions. Our FEMA advisory team can help you document the steps taken and plan what to do before the period ends.
Key takeaways
- Section 8 requires a person resident in India to take all reasonable steps to realise and repatriate foreign exchange due or accrued, within the period and in the manner specified by the Reserve Bank.
- "Repatriate to India" (section 2(y)) means bringing the realised foreign exchange into India and either selling it to an authorised person for rupees or holding it in an account with an authorised person to the extent notified; it includes use to discharge a foreign-exchange debt or liability.
- The hook for the period and manner is section 47(2)(c); the Act prints neither.
- The duty is subject to section 9 and the other provisions of the Act.
- Check the current regulations; the Act is silent on the period.
Read next
- Section 9: exemption from realisation and repatriation
- Section 47 and 48: Reserve Bank regulations and laying before Parliament
- Repatriation Rules Under FEMA: Complete Guide
- Realisation of Export Proceeds: RBI Rules, EDPMS and Write-Off
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.