Mumbai: RBI on Wednesday said no action under Foreign Exchange Management Act (FEMA) will be taken against declarations under one-time black money compliance window, which ends on Wednesday.

In a communication to banks, the Reserve Bank said: “No proceedings shall lie under the Foreign Exchange Management Act, 1999 (FEMA) against the declarant with respect to an asset held abroad for which taxes and penalties under the provisions of Black Money Act have been paid." RBI has already notified the Foreign Exchange Management Regulations, 2015, in this regard.

It further said no permission under FEMA will be required for those keen to dispose of assets declared and bring back the proceeds through a proper banking channel by 31 March. The rules framed under the new law provide for exemption from prosecution under FEMA to those disclosing their assets.

For those wanting to hold the assets after payment of tax and penalty prescribed under the new black money law, will have to apply to the central bank for permission within 180 days of making the declaration. In case the permission is denied by RBI, the foreign assets have to be mandatorily disposed of and proceeds brought to India, it said.

Under the new stringent black money law, a 90-day one-time voluntary compliance window has been provided to foreign assets holders to declare their undisclosed wealth, pay a total of 60% tax and penalty and escape harsh punishment, including a jail term. The compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 ends on Wednesday.