- 1. How much exchange is available for a business trip?
- 2. Can one obtain additional foreign exchange for medical treatment outside India?
- 3. How much exchange is available for studies outside India?
- 4. How much foreign exchange can one buy when going for tourism to a country outside India?
- 5. How much foreign exchange is available to a person going abroad on employment?
- 6. How much foreign exchange is available to a person going abroad on immigration?
- 7. Is there any purpose for which going abroad requires prior approval from theReserve Bank or Govt. of India?
- 8. From where one can buy foreign exchange?
- 9. How much foreign exchange can be purchased in foreign currency notes while buying exchange for travel abroad?
- 10. Do same Rules apply to persons going for studies abroad?
- 11. How much in advance one can buy foreign exchange for travel abroad?
- 12. Can one pay by cash full rupee equivalent of foreign exchange being purchased for travel abroad ?
- 13. Within what period a traveller who has returned to India is required to surrender foreign exchange?
- 14. On return to India can one retain some foreign exchange?
- 15. Is one required to surrender foreign coins also to an authorised dealer?
- 16. How much foreign exchange can one send as gift / donation to a person resident outside India?
- 17. Is one permitted to use International Credit Card (ICC) for undertaking foreign exchange transactions?
- 18. While coming into India how much Indian currency can be brought in?
- 19. While going abroad how much Indian currency can be taken out?
- 20. While coming into India how much foreign exchange can be brought in?
- 21. While going abroad how much foreign exchange can a person carry?
- 22. Is one required to follow complete export procedure when a gift parcel is sent outside India?
- 23. How much jewellery one can carry while going abroad?
- 24. Can a resident extend local hospitality to a non-resident?
- 25. Can residents purchase air tickets in India for their travel not touching India?
- 26. Can a resident open a foreign currency denominated account in India
- 27. Can a person resident in India hold assets outside India?
- 28. What is the Liberalised Remittance Scheme of USD 25,000?
- 29. Who is eligible to avail of this Liberalised Remittance Facility?
- 30. Is there any frequency for the remittance?
- 31. What are the purpose/s for which remittance can be made under the Scheme?
- 32. Can residents avail of this facility for acquiring immovable property and other assets abroad?
- 33. Can individuals open a foreign currency account abroad for making remittance under the scheme?
- 34. What is the impact of the Scheme on the existing facilities for private/business travel, gift, donation, studies, medical treatment etc./items covered in Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000?
- 35. Can an individual send remittance under the Scheme to any country?
- 36. What are the requirements to be complied with by the remitter?
- 37. If an investment of USD 25,000 rises in value within the year, can one book profits and invest abroad again?
- 38. Can an individual, who has repatriated the amount sent during the calendar year, avail of the facility once again?
- 39. Can remittances be made only in US Dollars?
- 40. Last year, resident investors could invest in equities of overseas listed firms that hold at least 10% in a listed Indian firm. Does this condition still apply?
- 41. Can an individual investor sign-on with an international online brokerage and buy and sell stocks ( without exceeding the USD 25,000 limit)??
|
| How
much exchange is available for a business trip? |
| Authorised dealers can release foreign
exchange up to US$25,000 for a business trip to any country other than Nepal
and Bhutan. Release of foreign exchange exceeding US$25,000 for a travel
abroad (other than Nepal and Bhutan) for business purposes, irrespective
of period of stay, requires prior permission from Reserve Bank. Visits in
connection with attending of an international conference, seminar, specialised
training, study tour, apprentice training, etc., are treated as business
visits. Visit abroad for medical treatment and/or check up also falls within
this category. |
|
|
|
| Can
one obtain additional foreign exchange for medical treatment outside India? |
| It has now been decided that authorised
dealers may release foreign exchange upto US$100,000, for medical treatment
outside India, without insisting on any estimate from a doctor or hospital,
on the basis of a declaration of requirement given by the applicant, provided
the payment for purchase of such foreign exchange is being made by cheque
or by debit to the applicants account. |
| |
|
| How
much exchange is available for studies outside India? |
| Release of foreign exchange for studies
abroad up to the estimate given by an institution abroad or US$30,000 per
academic year, whichever is higher, does not require prior permission from
the Reserve Bank. Students going abroad for studies are treated as Non-Resident
Indians (NRIs) and are eligible for all the facilities available to NRIs
under FEMA. In addition to their academic pursuits, they can receive remittance
upto USD 100,000 from close relatives from India on self-declaration, towards
maintenance, which could include remittances towards their studies also.
Educational and other loans availed of by students as resident in India
can be allowed to continue |
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|
| How
much foreign exchange can one buy when going for tourism to a country outside
India? |
| In connection with private visits
abroad, viz., for tourism purposes, etc., foreign exchange up to US$10,000,
in any one calendar year may be obtained from an authorised dealer. The
ceiling of US$10,000 is applicable in aggregate and foreign exchange may
be obtained for one or more than one visits provided the aggregate foreign
exchange availed of in one calendar year does not exceed the prescribed
ceiling of US$10,000 {The facility was earlier called B.T.Q or F.T.S.}.
This US$10,000 (BTQ) can be availed of by a person alongwith foreign exchange
for travel abroad for any purpose, including for employment or immigration
or studies. However, no foreign exchange is available for visit to Nepal
and/or Bhutan for any purpose. |
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| How
much foreign exchange is available to a person going abroad on employment? |
| Person going abroad for employment
can draw foreign exchanges up to US$100,000 from any authorised dealer in
India. |
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|
| How
much foreign exchange is available to a person going abroad on immigration? |
| Person going abroad for immigration
can draw foreign exchange upto US$100,000 per person from any authorised
dealer in India. This amount is only to meet the incidental expenses in
the country of migration. However no amount of foreign exchange can be remitted
outside India to become eligible or for earning points or credits for immigration.
All such remittances require prior permission of the Reserve Bank. |
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|
| Is
there any purpose for which going abroad requires prior approval from the
Reserve Bank or Govt. of India? |
| Dance troupes, artistes, etc., who
wish to undertake cultural tours abroad, should obtain prior approval from
the Ministry of Human Resources Development, Government of India, New Delhi.
AD’s may release foreign exchange, on the strength of the sanction
from the Ministry, to the extent and subject to conditions indicated therein |
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| |
|
| From
where one can buy foreign exchange? |
| Foreign exchange can be purchased
from any authorised dealer. Besides authorised dealers, full-fledged moneychangers
are also permitted to release exchange for business and private visits.
|
| |
|
| How
much foreign exchange can be purchased in foreign currency notes while buying
exchange for travel abroad? |
| Travellers are allowed to purchase
foreign currency notes/coins only up to US$ 2000. Balance amount can be
taken in the form of traveller’s cheque or banker’s draft. Exceptions
to this are (a) travellers proceeding to Iraq and Libya can draw foreign
exchange in the form of foreign currency notes and coins not exceeding US$
5000 or its equivalent; (b) travellers proceeding to the Islamic Republic
of Iran, Russian Federation and other Republics of Commonwealth of Independent
States can draw entire foreign exchange released in form of foreign currency
notes or coins. |
|
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|
| Do
same Rules apply to persons going for studies abroad? |
| For the purpose of studies abroad,
exchange for maintenance expenses is released in the form of (i) currency
notes up to US$ 500, (ii) the balance foreign exchange may be taken in form
of traveller’s cheques or bank draft payable overseas. |
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|
| How
much in advance one can buy foreign exchange for travel abroad? |
| The foreign exchange acquired for
any purpose has to be used within 60 days of purchase. In case it is not
possible to use the foreign exchange within the period of 60 days it should
be surrendered to an authorised dealer. |
|
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|
| Can
one pay by cash full rupee equivalent of foreign exchange being purchased
for travel abroad ? |
| Foreign exchange for travel abroad
can be purchased from banks against rupee payment in cash up to Rs.50,000/-.
However, if the rupee equivalent exceeds Rs.50,000/-, the entire payment
should be made by way of a crossed cheque/banker’s cheque/pay order/demand
draft only. |
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|
| Within
what period a traveller who has returned to India is required to surrender
foreign exchange? |
On return from a foreign trip travellers
are required to surrender unspent foreign exchange held in the form of currency
notes within 90days and travellers’ cheques within 180 days of return.
However, they are free to retain foreign exchange up to US$2,000, in form
of foreign currency notes or TCs for future use.
RBI has also advised authorised persons that where a person approaches them
for surrender of foreign exchange after the prescribed period, they should
not refuse to purchase the foreign exchange merely on the ground that the
prescribed period has expired
|
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|
| On
return to India can one retain some foreign exchange? |
| Residents are permitted to hold foreign
currency up to US$2,000 or its equivalent provided the foreign exchange
was - |
- acquired by him while on a visit to any place outside India by way
of payment for services not arising from any business in or anything
done in India; OR
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- acquired by him, from any person not resident in India and who is
on a visit to India, as honorarium or gift or for services rendered
or in settlement of any lawful obligation, OR
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- acquired by him by way of honorarium or gift while on a visit to any
place outside India; OR
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- acquired by him from an authorised person for travel abroad and represents
the unspent amount thereof.
|
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|
| Is
one required to surrender foreign coins also to an authorised dealer? |
| There is no restriction on residents
holding foreign coins. |
|
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|
| How
much foreign exchange can one send as gift / donation to a person resident
outside India? |
| Any person resident in India can remit
upto US$5,000 in any one year as a gift to a person residing outside India
or as donation to a charitable/educational/religious /cultural organisation
outside India. Remittances exceeding the limit require prior permission
from the Reserve Bank. |
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|
| Is
one permitted to use International Credit Card (ICC) for undertaking foreign
exchange transactions? |
| Use of the International Credit Cards
(ICCs) / ATMs/ Debit Cards can be made for making personal payments like
subscription to foreign journals, internet subscription, etc., and for travel
abroad in connection with various purposes only to the extent of the limits
specified above. However, the cards can be freely used in India. Use of
these instruments for payment in foreign exchange in Nepal and Bhutan is
not permitted. |
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|
| While
coming into India how much Indian currency can be brought in? |
| A person coming in to India from abroad
can bring in with him Indian currency notes within the limits given below: |
- upto Rs. 5,000 from any country other than Nepal or Bhutan, and
|
- any amount in denomination not exceeding Rs.100 from Nepal or Bhutan.
|
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|
| While
going abroad how much Indian currency can be taken out? |
| A person going out of India can take
out with him Indian currency notes within the limits given below: |
- upto Rs.5000 to any country other than Nepal or Bhutan, and
|
- any amount in denomination not exceeding Rs.100 to Nepal or Bhutan
.
|
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|
| While
coming into India how much foreign exchange can be brought in? |
| A person coming into India from abroad
can bring with him foreign exchange without any limit provided if foreign
currency notes, or travellers cheques exceed US$ 10,000/- or its equivalent
and/or the value of foreign currency exceeds US$ 5,000/- or its equivalent,
it should be declared to the Customs Authorities at the Airport in the Currency
Declaration Form (CDF), on arrival in India. |
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|
| While
going abroad how much foreign exchange can a person carry? |
Residents are free to carry the foreign
exchange purchased from an authorised dealer or moneychanger in accordance
with the Rules. In addition, they can also carry up to US$ 2,000, or higher
amounts representing the unutilized balance of a previous trip, if already
held by them in accordance with the Regulations i.e.; utilisation within
60 days.
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|
| Is
one required to follow complete export procedure when a gift parcel is sent
outside India? |
| A person resident in India is free
to send (export) any gift article of value not exceeding Rs. 5,00,000 provided
export of that item is not prohibited under the extant EXIM Policy. |
|
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|
| How
much jewellery one can carry while going abroad? |
Taking personal jewellery out of India
is governed by Baggage Rules framed under Export-Import Policy by the Government
of India and no approval of Reserve Bank is required in this case.
|
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|
| Can
a resident extend local hospitality to a non-resident? |
A person resident in India is free
to make any payment in Indian Rupees towards meeting expenses on account
of boarding, lodging and services related thereto or travel to and from
and within India of a person resident outside India who is on a visit to
India.
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| Can
residents purchase air tickets in India for their travel not touching India? |
| Residents may book their tickets in
India for their visit to any third country. That is residents can book their
tickets for travel for instance to London/New York through domestic/foreign
airlines in India itself. |
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|
| Can
a resident open a foreign currency denominated account in India? |
Persons resident in India are permitted
to maintain foreign currency accounts in India under following Schemes:
a. EEFC Accounts:-
· To avoid exchange loss
on conversion of foreign exchange into Indian Rupee & Rupee into foreign
exchange, residents can retain upto 50% of foreign currency remittances
received from abroad in a foreign currency account, viz., EEFC account,
with an authorised dealer in India.
· Funds held in EEFC account
can be utilised for current account transactions and also for approved capital
account transactions as specified by the extant Rules/Regulations/Notifications/Directives
issued by the Government/RBI from time to time.
b. RFC Accounts
:-
· Returning Indians, i.e., those Indians, who were
non-residents earlier, and are returning now for permanent stay, are permitted
to open, hold and maintain with an authorised dealer in India a Resident
Foreign Currency (RFC) Account to keep their foreign currency assets.
· Assets held outside India at the time of return can be credited
to such accounts. The foreign exchange (i) received or acquired as gift
or inheritance from a person referred to sub-section (4) of section 6 of
FEMA,1999 or (ii) referred to in clause (c) of section 9 of the Act or acquired
as gift or inheritance therefrom may also be credited to this account.
· The funds in RFC account are free from all restrictions regarding
utilisation of foreign currency balances including any restriction on investment
outside India. The facility is also available to residents provided foreign
exchange to be credited to such account is received out of certain specified
type of funds/accounts. c. RFC (Domestic)Account:-
· A person resident in India can open, hold and maintain with an
authorized dealer in India, a Resident Foreign Currency (Domestic) Account,
out of foreign exchange acquired in the form of currency notes, Bank notes
and travellers cheques from any of the sources like, payment for services
rendered abroad, as honorarium, gift, services rendered or in settlement
of any lawful obligation from any person not resident in India.
· The account may also be credited with/opened out of foreign exchange
earned like proceeds of export of goods and/or services, royalty, honorarium,
etc., and/or gifts received from close relatives (as defined in the Companies
Act) and repatriated to India through normal banking channels by resident
individuals.
· The account can be opened and maintained in GBP,USD,JPY and EURO
· Deposit in multiple currencies in a single account is not permitted.
Account can be opened in only one currency.
· An individual is permitted to maintain multiple accounts
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|
| Can
a person resident in India hold assets outside India? |
In terms of sub-section 4, of Section
(6) of the Foreign Exchange Management Act, 1999, a person resident in India
is free to hold, own, transfer or invest in foreign currency, foreign security
or any immovable property situated outside India if such currency, security
or property was acquired, held or owned by such person when he was resident
outside India or inherited from a person who was resident outside India.
This has been further liberalised by the Liberalised Remittance Scheme of
USD 25,000.
|
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|
| What
is the Liberalised Remittance Scheme of USD 25,000? |
This is a new facility extended to
all resident individuals under whom they may freely remit up to USD 25,000
per calendar year for any permissible current or capital account transaction
or a combination of both.
|
| |
|
| Who
is eligible to avail of this Liberalised Remittance Facility? |
| The facility is available to resident
individuals only |
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|
| Is
there any frequency for the remittance? |
| Resident individuals can avail of
the remittance facility under the Scheme once in a calendar year. |
| |
|
| What
are the purpose/s for which remittance can be made under the Scheme? |
| This facility is available for making
remittance/s for any permissible current or capital account transaction
or a combination of both. It is not available for purposes specifically
prohibited (Schedule I) or regulated by the Government of India (Schedule
II) of Foreign Exchange Management (Current Account Transactions) Rules,
2000. |
| |
|
| Can
residents avail of this facility for acquiring immovable property and other
assets abroad? |
| Yes. Individuals are free to use this
Scheme to acquire and hold immovable property, shares or any other asset
outside India without prior approval of RBI. |
| |
|
| Can
individuals open a foreign currency account abroad for making remittance
under the scheme? |
| Yes. Individuals are free to open,
hold and maintain foreign currency accounts with a bank outside India for
making remittances under the Scheme without the prior approval of RBI. The
account can be used for putting through any transaction connected with or
arising from remittances under the Scheme. |
| |
|
| What
is the impact of the Scheme on the existing facilities for private/business
travel, gift, donation, studies, medical treatment etc./items covered in
Schedule III of Foreign Exchange Management (Current Account Transactions)
Rules, 2000? |
| The facility under the Scheme is in
addition to those already available under Foreign Exchange Management (Current
Account Transactions) Rules, 2000. |
| |
|
| Can
an individual send remittance under the Scheme to any country? |
Remittance cannot be made directly
or indirectly to Bhutan, Nepal, Mauritius or Pakistan. The facility is also
not available for making remittances directly or indirectly to countries
identified by the Financial Action Task Force (FATF) as ‘non-co-operative
Countries or Territories' viz., Cook Islands, Egypt, Guatemala, Indonesia,
Myanmar, Nauru, Nigeria, Philippines and Ukraine.
Further, remittance under the facility cannot be made to individuals and
entities identified as posing significant risk or committing acts of terrorism
as advised to banks by RBI from time to time. |
| |
|
| What
are the requirements to be complied with by the remitter? |
| The individual will have to designate
a branch of an AD through which all the remittances under the Scheme will
be made. He has to furnish an application-cum-declaration in the specified
format regarding the purpose of the remittance and declare that the funds
belong to him and will not be used for purposes prohibited or regulated
under the Scheme. |
| |
|
| If
an investment of USD 25,000 rises in value within the year, can one book
profits and invest abroad again? |
| The investor is free to book profit
or loss abroad and to invest abroad again. He is under no obligation to
repatriate the funds sent abroad. |
| |
|
| Can
an individual, who has repatriated the amount sent during the calendar year,
avail of the facility once again? |
| Once a remittance is made for an amount
up to USD 25,000 during the calendar year, he would not be eligible to make
any further remittances under this route, even if the proceeds of the investments
have been brought back into the country. |
| |
|
| Can
remittances be made only in US Dollars? |
| The remittances can be in any currency
equivalent to USD 25,000 in a calendar year. |
| |
|
| Last
year, resident investors could invest in equities of overseas listed firms
that hold at least 10% in a listed Indian firm. Does this condition still
apply? |
| The stipulation that investors could
invest in equities of overseas listed firms that hold at least 10% in a
listed Indian firm which was made in terms of RBI’s A.P.(DIR Series)
Circular No.66 dated January 13, 2003 continues as an additional facility.
Under the current Liberalised Remittance Scheme, no such stipulation has
been made. |
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|
| Can
an individual investor sign-on with an international online brokerage and
buy and sell stocks ( without exceeding the USD 25,000 limit)? |
The Scheme does not restrict such
transactions, provided the transactions are within the limit of USD 25,000
per calendar year and is otherwise in order.
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