Successful repatriation of Overdue Funds

Nexdigm implemented a structured and proactive approach to resolve the crisis:

• Nexdigm promptly alerted the HO about potential FEMA risks, specifically the possibility of the payables being classified as Deemed External Commercial Borrowing (ECB).
• The team shared circulars and updates on AntiMoney Laundering (AML) regulations to highlight potential impacts.
• Persuaded HO to prioritize the issue by deploying a dedicated support team.

Nexdigm’s expert intervention led to the successful resolution of a complex financial compliance challenge with substantial benefits for the client. The overdue funds, totaling USD 0.9 million (INR 75 million), were repatriated after a prolonged accumulation period of 4.5 years, achieving full compliance with FEMA regulations. The process, completed within a turnaround time of 13 months, incurred no penalties and faced no instances of non-compliance. Furthermore, Nexdigm ensured the operational status of the subsidiary’s bank account, allowing the Indian subsidiary to independently manage its expenses without further regulatory risks.