RBI re-defines ‘Startup’ vide Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Fourth Amendment) Regulations, 20

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On 19-11-2024, the Reserve Bank of India notified the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Fourth Amendment) Regulations, 2024 to amend the . They came into force on 19-11-2024.

By way of the amendment, the explanations to Regulation 5 and para 1 (vii) of Schedule I in the 2015 Regulations has been substituted to provide that a ‘startup’ will mean an entity that is recognized as a startup by the Department for Promotion of Industry and Internal trade as per Notification number G.S.R. 127(E) dated 19-02-2019.

Earlier, a ‘startup’ meant an entity which complied with the conditions laid down in Notification no. G.S.R. 180(E) dated 17-02-2016 issued by the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

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