TMI BlogMaster Circular on Miscellaneous Remittances from India – Facilities for Residents.X X X X Extracts X X X X X X X X Extracts X X X X ..... nge by Authorised Dealers Contents A.1 General A.2 Sale of Exchange A.3 Medical Treatment A.4 Cultural Tours A.5 Private Visits A.6 Business Visits A.7 Period of surrender of foreign exchange A.8 Unspent Foreign Exchange A.9 Remittances for Tour Arrangements, etc. A.10 Payment in Rupees A.11 Advance Remittance Import of services A.12 Issue of Guarantee- Import of services A.13 Liberalised Remittance Scheme of USD 200,000 for Resident Individuals A.14 Documentation A.15 Endorsement on Passport A.16 International Credit Cards A.17 International Debit Cards A.18 Store Value Cards/Charge Cards/Smart Cards, etc. A.19 Acquisition of foreign securities under Employees Stock Option Plan (ESOP) A.20 Income- tax clearance Annex - 1 Annex - 2 Annex 3 Annex 4 Annex - 5 Annex - 6 Annex - 7 APPENDIX-1 AP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for participation in global conferences and specialized training, (e) Remittance for participation in international events / competitions (towards training, sponsorship and prize money), (f) Film shooting, (g) Medical treatment abroad, (h) Disbursement of crew wages, (i) Overseas education, (j) Remittance under educational tie up arrangements with universities abroad, (k) Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL, etc. (l) Employment and processing, assessment fees for overseas job applications, (m) Emigration and emigration consultancy fees, (n) Skills / credential assessment fees for intending migrants, (o) Visa fees, (p) Processing fees for registration of documents as required by the Portuguese / other Governments, registration / subscription / membership fees to International Organisations. 1.4 Release of foreign exchange is not admissible for travel to and transaction with residents of Nepal and Bhutan. (cf. Clause (b) of Rule 3 of the Rules (as indicated in item 2 of Appendix 2 ). A.2 Sale of Exchange 2.1 Authorised Persons may release foreign exchange for travel purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn exchange by an Authorised Dealer for medical treatment outside India. A.4 Cultural Tours Dance troupes, artistes, etc., who wish to undertake tours abroad for cultural purposes should apply to the Ministry of Human Resources Development (Department of Education and Culture), Government of India, for their foreign exchange requirements. Authorised Dealers may release foreign exchange, on the strength of the sanction from the Ministry concerned, to the extent and subject to conditions indicated therein. A.5 Private Visits Foreign exchange for private visit can also be released to a person who is availing of foreign exchange for travel outside India for any purpose up to the limits specified in Schedule III to the Rules. A.6 Business Visits Foreign exchange may be released for undertaking business travel or attending a conference or specialised training or for maintenance expenses of a patient going abroad for medical treatment or check up abroad or for accompanying as attendant to a patient going abroad for medical treatment / check up to the limits specified in Schedule III to the Rules. A.7 Period of surrender of foreign exchange 7.1 In case the foreign e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of foreign exchange acquired in the form of currency notes, bank notes and travellers cheques, are as under :- (i) acquired by him from an Authorised Person for travel abroad and represents the unspent amount thereof or (ii) 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 and by way of honorarium or gift or (iii) acquired by him, from any person not resident in India, and who is on a visit to India, as honorarium, gift, for services rendered or in settlement of any lawful obligation. Note: Where a person approaches an Authorised Person for surrender of unspent/ unutilized foreign exchange after the prescribed period of 180 days, Authorised Person should not refuse to purchase the foreign exchange merely on the ground that the prescribed period has expired. A.9 Remittances for Tour Arrangements, etc. 9.1 Authorised Dealers may remit foreign exchange up to a reasonable limit, at the request of a traveller towards his hotel accommodation, tour arrangements, etc., in the countries proposed to be visited by him or for making other tour arrangements for traveller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e neighbouring countries for services rendered by travel agents and hoteliers in these countries. Authorised Dealer may allow such remittances after verifying that the amount being remitted to the neighbouring countries (inclusive of remittances, if any, already made against the tour) does not exceed the amount actually remitted to India and the country of residence of the beneficiary is not Pakistan. A.10 Payment in Rupees Authorised Dealers may accept payment in cash up to Rs. 50,000 (Rupees fifty thousand only) against sale of foreign exchange for travel abroad (for private visit or for any other purpose). Wherever the sale of foreign exchange exceeds the amount equivalent to Rs.50,000, the payment must be received only by i. a crossed cheque drawn on the applicant s bank account, or ii. crossed cheque drawn on the bank account of the firm/company sponsoring the visit of the applicant, or iii. Banker s Cheque / Pay Order / Demand Draft or iv. Debit / credit / prepaid cards provided a) KYC/AML guidelines are complied with b) sale of foreign currency / issue of foreign currency TCs is within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Manager-in-Charge, Foreign Exchange Department, Foreign Investments Division (EPD), Reserve Bank of India, Central Office, Mumbai- 400001 a report on the circumstances leading to the invocation of the guarantee. A.13 Liberalised Remittance Scheme of USD 200,000 for Resident Individuals 13.1 Under this Scheme, Authorised Dealers may freely allow remittances by resident individuals up to USD 200,000 per financial year (April-March) for any permitted current or capital account transactions or a combination of both. 13.2 The facility is available to all resident individuals including minors. 13.3 Remittances under the facility can be consolidated in respect of family members subject to individual family members complying with the terms and conditions of the Scheme. 13.4 Remittances under the Scheme are allowed only in respect of permissible current or capital account transactions or a combination of both. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme. 13.5 Resident individuals are free to acquire a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies and territories as available on FATF website www.fatf-gafi.org . or as notified by the Reserve Bank. 13.17 For undertaking transactions under the Scheme, resident individuals may use the application-cum-Declaration Form as at Annex-3 and it is mandatory to have PAN number to make remittances under the Scheme. 13.18 AD Category I banks are required to furnish the information on remittances made under this scheme on a monthly basis, in the revised format as at Annex-7 , to the Chief General Manager-in-Charge, Foreign Exchange Department, (FID-EPD), Reserve Bank of India, Central Office, 11th Floor, Central Office Building, Mumbai - 400 001, on or before fifth of the following month to which it relates. A soft copy of the statement (in Excel format) may also be sent by email . This statement in the revised format should be forwarded through Online Returns Filing System (ORFS) for which purpose all the AD Category I Banks have been given user ID and password by the Reserve Bank. A.14 Documentation 14.1 The Reserve Bank will not, generally, prescribe the documents which should be verified by the Authorised Dealers while releasing foreign exchange. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for any purpose for which exchange can be purchased from an Authorised Dealer in India, e.g. for import of books, purchase of downloadable software or import of any other item permissible under Foreign Trade Policy (FTP). 16.3 ICCs cannot be used on internet or otherwise for purchase of prohibited items, like lottery tickets, banned or proscribed magazines, participation in sweepstakes, payment for call-back services, etc., since no drawal of foreign exchange is permitted for such items/activities. 16.4 There is no aggregate monetary ceiling separately prescribed for use of ICCs through internet. 16.5 Resident individuals maintaining foreign currency accounts with an Authorised Dealer in India or a bank abroad, as permissible under extant Foreign Exchange Regulations, are free to obtain ICCs issued by overseas banks and other reputed agencies. The charges incurred against the card either in India or abroad, can be met out of funds held in such foreign currency account/s of the card holder or through remittances, if any, from India only through a bank where the card holder has a current or savings account. The remittance for this purpose should also be made directly to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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