(i) Section 14 of FERA 1973 authorises the Central Government to order, by notification in the Official Gazette, persons in or resident in India to surrender foreign exchange owned or held by them to Reserve Bank or to such person as the Reserve Bank may authorise, at the prevailing rate of exchange. In terms of its Notification GSR 679E No. F.10/22/90/NRI Cell dated 17th July 1992, the Central Government has directed that every person in or resident in India, who owns or holds any foreign exchange expressed in any currency other than the currency of Nepal or Bhutan, should sell that foreign exchange to an authorised dealer within three months from the date of acquisition thereof, against payment in rupees at the current rate of exchange, except in the following cases -
(a) Foreign exchange held by authorised dealers.
(b) Foreign exchange acquired or held by persons for business or other purpose within the scope of authorisation granted by Reserve Bank.
(c) Foreign exchange and any income thereon acquired by persons lawfully i.e. without contravention of the provisions of FERA 1973 while they were resident outside India for a continuous period of not less than one year.
(d) Foreign exchange and any income thereon earned by persons through employment, business or vocation outside India taken up or commenced while they were resident outside India and such stay outside India was for a continuous period of not less than one year.
(e) Foreign exchange acquired or received before 8th July 1947 and held outside India with the general or special permission of Reserve Bank.
(f) Foreign exchange received by way of gift from persons referred to in items (c), (d) and (e) above and provided the resident donee is his relative i.e. husband, wife, brother or sister or any lineal ascendant or descendant of that individual and that tax, if any, payable thereon has been paid in India.
(g) Foreign exchange received by way of inheritance from persons referred to in items (c), (d) and (e) above out of the funds covered by exemption and provided tax, if any, payable thereon has been paid in India.
(h) Foreign exchange held in the form of foreign coins.
(i) Foreign currency/ies held for numismatic purposes up to a total value of U.S.$ 500.
(j) Foreign currency/ies held for personal purposes upto a total value of U.S.$ 2000 inclusive of foreign currency held for numismatic purpose or its equivalent.
(ii) By its Notifications No. FERA. 47/77-RB and No. FERA.48/77-RB both dated 24th November 1977 issued under Sections 8 and 9 of FERA 1973 respectively, Reserve Bank has made it obligatory for any person acquiring foreign exchange by way of income on assets held outside India, inheritance, settlement, gift (other than those covered by exemptions granted by Central Government as stated above) or remuneration for services or by way of payments made on behalf of persons resident outside India, to offer it for sale to an authorised dealer within seven days from the date of receipt if the foreign exchange is received in India. In all other cases, foreign exchange will have to be offered for sale to an authorised dealer within three months from the date of acquisition. If, however, in the meantime, such foreign exchange is brought or sent to India, it will have to be offered for sale within seven days from the date on which it is brought to or received in India.
NOTE: In the case of residents who receive foreign exchange by way of gift or remuneration or payment for services rendered outside India during their temporary visits abroad, the obligation for repatriation and surrender of the foreign exchange to authorised dealers in India will arise in respect of unspent foreign exchange brought by them at the time of their return to India.