Forex Facilities for Residents (Individuals)
(As on Oct 1, 2003)
Private Travel
Foreign exchange up to US$ 10,000 is permissible in any calendar year for
tourism or private travel to any country other than Nepal and Bhutan on
the basis of self-certification. When traveling to Nepal and Bhutan, you
can carry as much Indian currency as you wish, except currency notes with
denominations of Rs.500 and above.
Study Abroad / Medical treatment abroad /
Employment abroad / Emigration / Maintenance of close relatives abroad
Foreign exchange up to US$ 100,000 is permissible on the basis of
self-certification. For students the limit of $100,000 is applicable for
each academic year. For medical treatment in addition to $100,000, foreign
exchange up to US$ 25,000 can be taken for meeting boarding/lodging/travel
expenses of the patient and also for the accompanying attendant on
self-certification. Amounts in excess of the limits can be released on
basis of documentary evidence of requirement.
Remittance for Miscellaneous Purposes up to
US$ 5000
Remittances can be made up to US$ 5000, for any miscellaneous purpose,
without furnishing documents.
Donations
Donations can be made to anybody up to US$ 5,000 every year per remitter
on self certification.
International Credit Cards
International Credit Cards can be used for:
- meeting expenses or making purchases while abroad without any limit.
- making payments in foreign exchange for purchase of books and other
items through the Internet.
Residents holding a foreign currency account in India or with an
overseas bank, are free to obtain ICCs issued by overseas banks and other
reputed agencies.
Surrender of Foreign Exchange on Return
Foreign exchange up to US$ 2,000, in the form of foreign currency notes or
travellers' cheques (TCs) can be retained indefinitely for future use.
Amounts in excess of $2000 have to be surrendered to a bank within 90 days
and TCs within 180 days of return or credited to RFC(D) account. Foreign
coins can be retained indefinitely without any limit.
Resident Foreign Currency (Domestic)
Account
Residents can open Resident Foreign Currency (Domestic) Account with a
bank in India for crediting:
- unspent balances after travel abroad
- currency ,TCs, bank drafts received as gifts from or for services
rendered to non resident while in India
- foreign exchange earnings received, through banking channel, as
honorarium, consultancy, royalty, for any services or towards exports of
goods
RFC(D) accounts are NOT interest bearing and there is no ceiling on the
balances that can be built up in these accounts. The balances held in
these accounts can be used for any purpose for which foreign exchange can
be bought from a bank in India.
Click here to know how to open an RFC Domestic account.
Liberalised
Remittance Scheme of USD 100,000/- for Resident Individuals
RBI has recently come out with a scheme vide their circular AP (Dir.
Series) Circular no 51 dated 08th May 2007, whereby individuals may remit
up to USD 100,000/- per financial year for any current or Capital account
transaction or a combination of both.
Eligibility
All Resident individuals are eligible to avail of the facility under the
scheme. This facility is not available to Corporates, Partnership firms,
HUF, Trusts etc.
Purpose
This facility is available for making remittance up to USD 100,000/- per
financial year for any current or Capital account transactions or a
combination of both.
Under this facility, Resident Indians will be free to acquire and Hold
immovable property or shares or any other asset outside India without
prior approval of the Reserve Bank of India. Individuals will also be able
to maintain and hold foreign currency accounts with a bank outside India
for making remittances under the scheme without prior approval of the
Reserve Bank of India. The foreign currency account may be used for
conducting transactions connected with or arising from remittances
eligible under the scheme.
Please note that this facility is available in addition to those already
available for private travel, business travel, donations, studies abroad,
medical treatment etc. as described in the Schedule III of FEMA (current
account transactions) Rules 2000.
The remittance under this scheme is not
available for the following:
- Remittance for any purpose specifically prohibited under Schedule-I
(like purchase of lottery/sweep stakes, tickets proscribed magazines
etc) or any item restricted under Schedule II of Foreign Exchange
Management (Current Account Transactions) Rules, 2000.
- Remittances made directly or indirectly to Bhutan, Nepal, Mauritius
or Pakistan.
- Remittances made directly or indirectly to countries identified by
the Financial Action Task Force (FATF) as "non co-operative countries
and territories" viz. Cook Islands, Egypt, Guatemala, Indonesia,
Myanmar, Nauru, Nigeria, Philippines and Ukraine.
- Remittances directly or indirectly to those individuals and entities
identified as posing significant risk of committing acts of terrorism as
advised separately by the Reserve Bank to the banks.
Procedure to be followed to effect
remittances under this category:
When a customer approaches a branch for a remittance under this Scheme the
following procedures must be followed:
- The customer must designate a branch of an Authorised Dealer through
which all remittances under this scheme will be transacted. This is
incorporated in the Format declaration itself (Schedule A) and needs to
be filled in by the customer.
- The customer who needs to make this remittance will furnish the
following documentation.
- RBI prescribed letter cum declaration in the format as per
Annexure A. - regarding the purpose of the remittance and declaration
that the funds belong to the remitter and will not be used for any of
the restricted purposes as stated above
Liberalised
Remittance Scheme for Resident Individuals- Enhancement of limit from USD
100,000 to USD 200,000
Circular No RBI/2007-08/146 A. P. (DIR Series) Circular No.9 dated
September 26, 2007
1. Attention of Authorised Dealer Category - I (AD Category - I) banks is
invited to A. P. (DIR Series) Circular No. 51 dated May 8, 2007 on the
Liberalised Remittance Scheme for Resident Individuals (the Scheme).
2. With a view to further liberalize the Scheme it has been decided, in
consultation with the Government of India, to enhance the existing limit
of USD 100,000 per financial year to USD 200,000 per financial year (April
- March) with immediate effect. Accordingly, AD Category-I banks may now
allow remittance up to USD 200,000, per financial year, under the Scheme,
for any permitted current or capital account transaction or a combination
of both.
3. All other terms and conditions mentioned in A. P. (DIR Series) Circular
No. 64 dated February 4, 2004, A. P. (DIR Series) Circular No. 24 dated
December 20, 2006 and A. P. (DIR Series) Circular No. 51 dated May 8, 2007
shall remain unchanged.
4. Necessary amendments to Foreign Exchange Management (Permissible
Capital Account Transactions) Regulations, 2000 (Notification No. FEMA
1/2000- RB dated 3rd May 2000) are being notified separately.
5. AD - Category I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
6. The directions contained in this Circular have been issued under
Section 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42
of 1999) and is without prejudice to permissions / approvals, if any,
required under any other law.
Source :
http://www.hdfcbank.com/personal/forex/forex_rbi_guidelines.htm |
