Forex Facilities for Residents (Individuals) (As on Oct 1, 2003)
International Credit Cards can be used for
Foreign exchange up to US$ 3,000, in the form of foreign currency notes or travellers’ cheques (TCs) can be retained indefinitely for future use. Amounts in excess of $3000 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.
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.
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.
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
When a customer approaches a branch for a remittance under this Scheme the following procedures must be followed
Circular No RBI/2007-08/146 A. P. (DIR Series) Circular No.9 dated September 26, 2007
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).
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.
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.
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.
AD – Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
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.