Foreign Exchange Management Act, 1999

9. Exemption from realization and repatriation in certain cases. - 

The provisions of sections 4 and 8 shall not apply to the following, namely:-

(a) possession of foreign currency or foreign coins by any person up to such limit as the Reserve Bank may specify¹;

(b) foreign currency account held or operated by such person or class of persons and the limit up to which the Reserve Bank may specify²;

(c) foreign exchange acquired or received before the 8th day of July, 1947 or any income arising or accruing thereon which is held outside India by any person in pursuance of a general or special permission granted by the Reserve Bank;

(d) foreign exchange held by a person resident in India up to such limit as the Reserve Bank may specify, if such foreign exchange was acquired by way of gift or inheritance from a person referred to in clause (c), including any income arising there from;

(e) foreign exchange acquired from employment, business, trade, vocation, services, honorarium, gifts, inheritance or any other legitimate means up to such limit as the Reserve Bank may specify^1; and

(f) such other receipts in foreign exchange as the Reserve Bank may specify.

1. FEM (Possession and Retention of foreign Currency) Regulation 2000

2. FEM ( Foreign Currency Accounts by a person Resident in India) Regulations 2000