Reserve Bank of India(RBI) has recently notified the amended Foreign Exchange Management Regulations 2024, simplifying the process for authorised dealers to allow recognized start-ups to open foreign currency bank accounts. These amendments follow a change in the definition of start-ups, which now includes entities up to 10 years old (up from 5 years) and with a higher turnover threshold of Rs 100 crore (compared to the previous limit of Rs 25 crore).
The RBI also allows non-residents to hold interest-bearing accounts in either INR or foreign currency.
“For the purpose of this sub-regulation a ‘startup’ will mean an entity recognised as a startup by the Department for Promotion of Industry and Internal Trade pursuant to notification number G.S.R. 127(E) dated February 19, 2019, and as amended from time to time.” the statement reads.
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