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The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, Under the Foreign Exchange Management Act, FEMAwhich came forex guidelines of rbi force with effect from June 1,all transactions involving foreign exchange have been classified either as capital or current account transactions. These FAQs attempt to put in place the common queries that users have on the subject in easy forex guidelines of rbi understand language.

Who are authorized by the Reserve Forex guidelines of rbi to sell foreign exchange for forex guidelines of rbi purposes? How much foreign currency can be carried in forex guidelines of rbi for travel abroad?

Exceptions to this are a travellers proceeding to Iraq and Libya who can draw foreign exchange in the form of foreign currency notes and coins not exceeding USD or its equivalent per visit; b forex guidelines of rbi proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States who can draw entire foreign exchange up-to USDin the form of foreign currency notes or coins.

How much Indian currency can be brought in while coming into India? A resident of India, who has gone forex guidelines of rbi of India on a temporary visit may bring into India at the time of his return from any place outside India other than Nepal and Bhutancurrency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. Any person resident outside India, not being a citizen of Pakistan and Bangladesh and also not a traveller coming from and going to Pakistan and Bangladesh, and visiting India may bring into India currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.

How much foreign exchange can be brought in while visiting India? A person coming into India from abroad can bring with him foreign exchange without any limit. 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 an authorized person against rupee payment in cash below Rs. Is there any time-frame for a traveller who has returned to India 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 and travellers cheques within days of return.

Should foreign coins be surrendered to an Authorised Dealer on return from abroad? Is there any category of visit which requires prior approval from the Reserve Bank or the Government of India? Dance troupes, artistes, etc.

The Foreign Contribution Regulation Act, is administered and monitored by the Forex guidelines of rbi of Home Affairs whose address is given below:. Banks authorised to deal in foreign exchange are permitted to issue International Debit Cards IDCs which can be used by a resident individual for drawing cash or making payment forex guidelines of rbi a merchant establishment overseas during his visit abroad.

No prior permission from Reserve Bank is required for issue of such cards. However, the use of such cards is limited to permissible current account transactions and subject to the LRS limit. Resident individuals maintaining a foreign currency account with an Authorised Dealer in India or a bank abroad, as permissible under extant Foreign Exchange Regulations, are free to obtain International Credit Cards ICCs issued by overseas banks and other reputed agencies.

The remittance for this purpose, should also be made directly to the card-issuing agency abroad, and not to a third party. It is also clarified that the applicable credit limit will be the limit fixed by the card issuing banks. There is no monetary ceiling fixed by the RBI for remittances, if any, under this facility. The LRS limit shall not apply to the use of ICC for making payment by a person towards meeting expenses while such person is on a visit outside India.

Taking personal jewellery out of India is as per the Baggage Rules, governed and administered by Customs Department, Government of India. While no approval of the Reserve Bank is required in this case, approvals, if any, required from Customs Authorities may be obtained. 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.

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. In terms of sub-section 4, of Section 6 of the Foreign Exchange Management Act,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.

Skip to main content. Search the Website Search. Frequently Asked Questions Miscellaneous forex facilities As on August 01, The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, forex guidelines of rbi Who is an Authorized Dealer AD? How much jewellery can be carried while going abroad? Can a resident extend local hospitality to a non-resident?

Can a person resident in India hold assets outside India? The residents can hold foreign coins without any limit. The Foreign Contribution Regulation Act, is administered and monitored by the Ministry of Home Affairs forex guidelines of rbi address is given below: Use of these instruments for payment in foreign exchange in Nepal and Bhutan is not permitted.

Further, a resident individual can also acquire property and other assets overseas under LRS. As on August 01, The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act,

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The captioned Scheme was introduced on February 4, , vide A. These Regulations are amended from time to time to incorporate the changes in the regulatory framework and published through amendment notifications. This Master Direction consolidates the existing instructions on the "Liberalised Remittance Scheme" at one place. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.

The Master Direction issued herewith shall be amended suitably simultaneously. The changes are listed at the end of Master Direction in any case.

Under the Liberalised Remittance Scheme, Authorised Dealers may freely allow remittances by resident individuals up to USD 2,50, per Financial Year April-March for any permitted current or capital account transaction or a combination of both.

The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions. During the period from February 4, till date, the LRS limit has been revised as under:. The Scheme is available to all resident individuals including minors. Remittances under the Scheme can be consolidated in respect of family members subject to individual family members complying with its terms and conditions.

For private visits abroad, other than to Nepal and Bhutan, any resident individual can obtain foreign exchange up to an aggregate amount of USD 2,50,, from an Authorised Dealer or FFMC, in any one financial year, irrespective of the number of visits undertaken during the year. The tour operator can collect this amount either in Indian rupees or in foreign currency from the resident traveller. Any resident individual may remit up-to USD 2,50, in one FY as gift to a person residing outside India or as donation to an organization outside India.

Remittance of any amount of foreign exchange outside India in excess of this limit may be allowed only towards meeting incidental expenses in the country of immigration and not for earning points or credits to become eligible for immigration by way of overseas investments in government bonds; land; commercial enterprise; etc.

Visits by individuals in connection with attending of an international conference, seminar, specialised training, apprentice training, etc. However, if an employee is being deputed by an entity for any of the above and the expenses are borne by the latter, such expenses shall be treated as residual current account transactions outside LRS and may be permitted by the AD without any limit, subject to verifying the bonafides of the transaction.

A person who has fallen sick after proceeding abroad may also be released foreign exchange by an Authorised Dealer without seeking prior approval of the Reserve Bank of India for medical treatment outside India.

Remittances under the Scheme can be used for purchasing objects of art subject to the provisions of other applicable laws such as the extant Foreign Trade Policy of the Government of India. Individuals can also open, maintain and hold foreign currency accounts with a bank outside India for making remittances under the Scheme without prior approval of the Reserve Bank.

The foreign currency accounts may be used for putting through all transactions connected with or arising from remittances eligible under this Scheme. Banks should not extend any kind of credit facilities to resident individuals to facilitate capital account remittances under the Scheme.

The Scheme is not available for remittances for any purpose specifically prohibited under Schedule I or any item restricted under Schedule II of Foreign Exchange Management Current Account Transaction Rules, , dated May 3, , as amended from time to time.

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 is also not permitted. The individual will have to designate a branch of an AD through which all the remittances under the Scheme will be made. The resident individual seeking to make the remittance should furnish 6 Form A2 as at Annex for purchase of foreign exchange under LRS. It is mandatory to have PAN card to make remittances under the Scheme for capital account transactions.

However, PAN card need not be insisted upon for remittances made towards permissible current account transactions up to USD 25, Investor, who has remitted funds under LRS can retain, reinvest the income earned on the investments. At present, the resident individual is not required to repatriate the funds or income generated out of investments made under the Scheme. It would be the responsibility of the resident individual to ensure that the amount of loan granted by him is within the LRS limit and all the remittances made by the resident individual during a given financial year including the loan together have not exceeded the limit prescribed under LRS;.

Agricultural or plantation activities or in real estate business, or construction of farm houses, or. It would be the responsibility of the resident donor to ensure that the gift amount is within the LRS limit and all the remittances made by the donor during the financial year including the gift amount have not exceeded the limit prescribed under the LRS. The Reserve Bank will not, generally, prescribe the documents which should be verified by the Authorised Persons while releasing foreign exchange for current account transactions.

In this connection, attention of authorized persons is drawn to sub-section 5 of Section 10 of the FEMA, which provides that an authorised person shall require any person desiring to transact in foreign exchange to make such a declaration and to give such information as will reasonably satisfy him that the transaction will not involve and is not designed for the purpose of any contravention or evasion of the provisions of the FEMA or any rule, regulation, notification, direction or order issued there under.

Reserve Bank of India will not issue any instructions under the FEMA, regarding the procedure to be followed in respect of deduction of tax at source while allowing remittances to the non-residents.

It shall be mandatory on the part of Authorised Dealers to comply with the requirement of the tax laws, as applicable. They should also comply with the Anti-Money Laundering Rules in force while allowing the facility. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittances for capital account transactions.

If the applicant seeking to make the remittances is a new customer of the bank, Authorised Dealers should carry out due diligence on the opening, operation and maintenance of the account. Further, the Authorised Dealers should obtain bank statement for the previous year from the applicant to satisfy themselves regarding the source of funds. If such a bank statement is not available, copies of the latest Income Tax Assessment Order or Return filed by the applicant may be obtained.

AD bank should not extend any kind of credit facilities to resident individuals to facilitate remittances for capital account transactions under the Scheme. Authorised Dealer may keep a record of the countries identified by FATF as non-co-operative countries and territories and accordingly update the list from time to time for necessary action by their branches handling the transactions under the Liberalised Remittance Scheme.

For this purpose, they may access the website www. The remittances made under this Scheme will be reported in the R-Return in the normal course. A number of foreign banks operating in India as well as Indian banks have been soliciting through advertisements foreign currency deposits from residents under LRS [on behalf of overseas mutual funds] or for placing at their overseas branches. These advertisements may not always contain appropriate disclosures to guide potential depositors giving rise to concerns from the point of view of protecting the interest of the resident individuals.

Further, marketing in India of schemes soliciting foreign currency deposits by foreign entities, not having operational presence in India, also raises supervisory concerns. Skip to main content. Search the Website Search. Operational instructions to Authorised Persons 3. During the period from February 4, till date, the LRS limit has been revised as under: The permissible capital account transactions by an individual under LRS are: Private visits For private visits abroad, other than to Nepal and Bhutan, any resident individual can obtain foreign exchange up to an aggregate amount of USD 2,50,, from an Authorised Dealer or FFMC, in any one financial year, irrespective of the number of visits undertaken during the year.

Business trip Visits by individuals in connection with attending of an international conference, seminar, specialised training, apprentice training, etc. Facilities available to students for pursuing their studies abroad. Documentation 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.

The business of chit fund, or Nidhi Company, or Agricultural or plantation activities or in real estate business, or construction of farm houses, or Trading in Transferable Development Rights TDRs. Operational instructions to Authorised Persons 1.

Amount in USD 3.