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Master Circular on Miscellaneous Remittances from India Facilities for Residents

FEMA - 06/2015-16 - Dated:- 1-7-2015 - RBI/2015-16/91 Master Circular No. 6/2015-16 July 1, 2015 To, All Authorised Persons in Foreign Exchange Madam / Sir, Master Circular on Miscellaneous Remittances from India -Facilities for Residents Miscellaneous remittance facilities for residents are allowed in terms of section 5 of the Foreign Exchange Management Act, 1999, read with Government of India Notification No. G.S.R 381(E) dated May 3, 2000, as amended from time to time. 2. This Master Circula .....

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al guidance. The Authorised Persons and the Authorised Dealer Category - I banks may refer to respective circulars/ notifications for detailed information, if so needed. Yours faithfully, (B.P. Kanungo) Principal Chief General Manager INDEX A.1 General : 3 A.2 Sale of Exchange : 5 A.3 Cultural Tours : 6 A.4 Private Visits : 6 A.5 Gift/donation : 7 A.6 A.7 A8 A9 Going abroad on employment Emigration Maintenance of close relatives abroad Business trip : : : : 7 7 8 8 A.10 A11 A12 A13 Medical treat .....

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y to grant loan to NRI/ PIO close relative under Liberalised Remittance Scheme : 17 A.20 Documentation : 18 A.21 International Credit Cards : 19 A.22 International Debit Cards : 20 A.23 Store Value Cards/Charge Cards/Smart Cards, etc : 20 A.24 Redemption of Unutilised balance on prepaid travel cards : 21 A.25 Acquisition of foreign securities under Employees Stock Option (ESOP) : 21 A.26 Income tax clearance : 21 Annex 1 FEM (CAT) Rules, 2000 : 22 Annex 2 Form A-2 : 30 Annex 3 Application cum de .....

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t, 1999 (as indicated in item 1 of Appendix 2) which are detailed in the Foreign Exchange Management (Current Account Transactions) Rules, 2000 (hereinafter referred to as the Rules) notified by the Government of India vide Notification No. G.S.R.381 (E) dated May 3, 2000, (Annex-1) as amended from time to time. In terms of the said Rules, drawal of foreign exchange for certain categories of transactions as listed in Schedule I is expressly prohibited. Exchange facilities for transactions includ .....

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banks. All applications for release of foreign exchange exceeding the limits as prescribed in Schedule III to the Rules should be referred to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank, under whose jurisdiction the applicant is functioning / residing. 1.2 Drawal of foreign exchange also includes use of International Credit Cards (ICC), International Debit Cards (IDC), ATM cards, etc. Currency , interalia, includes ICC, IDC and ATM Cards. Accordingly, all .....

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n-trade current account transactions: (a) Private visits, (b) Remittance by tour operators / travel agents to overseas agents / principals / hotels, (c) Business travel, (d) Fee 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 education .....

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ption / 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 purposes on the basis of a declaration given by the traveller regarding the amount of foreign exchange availed of during the financial year. It is not mandatory for .....

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may, if requested by the traveller, record under their stamp and signature details of foreign exchange sold for travel, other than the private visit abroad. In case of a child travelling on a parent's passport, the endorsement should be made on the joint passport. 2.3 Out of the overall foreign exchange (USD 250, 000) being sold to a traveller, exchange in the form of foreign currency notes and coins may be sold up to the limit indicated below: (i) Travellers proceeding to countries other t .....

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nt in cash or up to the cash limit as specified by the Haj Committee of India, may be released. 2.4 A resident Indian is allowed to take INR of denomination of ₹ 100 or lesser denomination, to Nepal and Bhutan, without any limits. For denominations of ₹ 500 and ₹ 1,000, the limit is ₹ 25,000. 2.5 The form A2 relating to sale of foreign exchange should be retained for a period of one year by the Authorised Persons, together with the related documents, for the purpose of ve .....

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so as to enable them to provide purpose of remittance for statistical inputs for Balance of Payment 2.6 In cases where the remittances are allowed on the basis of self-declaration, the onus of furnishing the correct details in the application will remain with the applicant who has certified the details relating to the purpose of such remittance. A.3 Cultural Tours Dance troupes, artistes, etc., who wish to undertake tours abroad for cultural purposes should apply to the Ministry of Human Resour .....

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any one financial year, irrespective of the number of visits undertaken during the year. This limit has been subsumed under the Liberalised Remittance Scheme w.e.f. May 26, 2015. If an individual has already remitted any amount under the Liberalised Remittance Scheme in a financial year, then the applicable limit for travelling purpose for such individual would be reduced from USD 250,000 by the amount so remitted. 4.2 The resident individual shall have to fill Form A2 and Application cum decla .....

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serve Bank. For a resident individual, this limit has been subsumed under the Liberalised Remittance Scheme w.e.f. May 26, 2015. If an individual remits any amount under the Liberalised Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 by the amount so remitted. 5.2 General permission is available to persons other than individuals to remit towards donations up-to one per cent of their foreign exchange earnings during the previo .....

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for employment can draw foreign exchange up to USD 2,50,000 per financial year from any Authorised Dealer in India on the basis of self-declaration in Form A2 and Application cum declaration for purchase of foreign exchange under LRS of USD 250,000 . This limit has been subsumed under the Liberalised Remittance Scheme w.e.f. May 26, 2015. If an individual remits any amount under the Liberalised Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced .....

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foreign exchange can be remitted outside India to become eligible or for earning points or credits for immigration. A.8 Maintenance of close relatives abroad A resident individual can remit up-to USD 250,000 per financial year towards maintenance of close relatives [ relative as defined in Section 6 of the Indian Companies Act, 1956] abroad. This limit has been subsumed under the Liberalised Remittance Scheme w.e.f. May 26, 2015. If an individual remits any amount under the Liberalised Remittan .....

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connection with attending of an international conference, seminar, specialised training, apprentice training, etc., are treated as business visits. Release of foreign exchange exceeding USD 2,50,000 for business travel abroad, irrespective of the period of stay, by residents require prior permission from the Reserve Bank. 9.3 However, if an employee is being deputed by a company and the expenses are borne by the company, then such expenses shall be treated as residual current account transactio .....

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under LRS of USD 250,000 without insisting on any estimate from a hospital/doctor. 10.2 For amount exceeding the above limit, estimate from the doctor in India or hospital/ doctor abroad, is required to be submitted to the Authorised Dealers. 10.3 A person who has fallen sick after proceeding abroad may also be released foreign exchange by an Authorised Dealer for medical treatment outside India. 10.4 In addition to the above, an amount up to USD 250,000 per financial year is allowed to a person .....

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versity. However, AD Category I bank and AD Category II may allow remittances exceeding USD 250,000 based on the estimate received from the institution abroad. 11.2 Students going abroad for studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA, 1999. Educational and other loans availed of by students as residents in India can be allowed to continue. A student holding NRO account may withdraw and repatriate up to USD 1 million per .....

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rrent account transactions which were available to individuals in the erstwhile Schedule III to FEM (CAT) Rules, 2000 dated May 3, 2000, and which do not appear in Schedule III to FEM (CAT) Amendment Rules, 2015. A.13 Period of surrender of foreign exchange 13.1 In case the foreign exchange purchased for a specific purpose is not utilized for that purpose, it could be utilized for any other eligible purpose for which drawal of foreign exchange is permitted under the relevant Rules / Regulation. .....

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the foreign exchange merely on the ground that the prescribed period has expired. 13.3 The liberalized uniform time limit of 180 days is applicable only to resident individuals and in areas other than export of goods and services. 13.4 In all other cases, the regulations / directions on surrender requirement shall remain unchanged. (cf. Notification No. FEMA 9/2000-RB dated May 3, 2000, as amended from time to time). A.14 Unspent Foreign Exchange 14.1 As stated above, unspent foreign exchange br .....

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equent visit abroad. 14.3 A resident individual in India can open, hold and maintain with an Authorised 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. The eligible credits to the Resident Foreign Currency (Domestic) Account, are as under :- a) 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 b .....

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n 6 of the Indian Companies Act, 1956. f) by way of earning through export of goods/services, or as royalty, honorarium or by any other lawful means; g) representing the disinvestment proceeds received by the resident accountholder on conversion of shares held by him to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of Government of India. h) by way of earnings received as the proceeds of life insurance policy claims/maturity/surrender values sett .....

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count Transactions) Regulations, 2000. A.15 Remittances for Tour Arrangements 15.1 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 travellers from India, provided in each case the Authorised Dealer is satisfied that the remittance is being made out of the foreign exchange purchased by the traveller .....

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urchased by the traveller concerned from an Authorised Person (including exchange drawn for private travel abroad) in accordance with the Rules, Regulations and Directions in force. 15.3 Authorised Dealer may open foreign currency accounts in the name of agents in India who have tie up arrangements with hotels/ agents, etc., abroad for providing hotel accommodation or making other tour arrangements for travellers from India provided:- a) the credits to the account are by way of depositing i) col .....

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o the agent. The sale of passes/ ticket in India can be made either against the payment in Indian Rupees or in foreign exchange released for visits abroad. The cost of passes/tickets collected in Indian Rupees need not be adjusted in the travellers entitlement of foreign exchange for private visit. 15.5 In respect of consolidated tours arranged by travel agents in India for foreign tourists visiting India and neighbouring countries like Nepal, Bangladesh, Sri Lanka, etc., against advance payment .....

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ally remitted to India and the country of residence of the beneficiary is not Pakistan. A.16 Payment in Rupees Authorised Dealers may accept payment in cash for amounts which do not exceed the amount equivalent to ₹ 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 ₹ 50,000, the payment must be received only by: (i) a crossed cheq .....

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paid card holder is one and the same person. Note: Where the rupee equivalent of foreign exchange drawn exceeds ₹ 50,000/- either for any single drawal or more than one drawal reckoned together for a single journey/visit, it should be paid by cheque or draft A.17 Issue of Guarantee - Import of service 17.1 With a view to further liberalise the procedure (other than in respect of a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments) for import o .....

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of documentary evidence for import of services in the normal course. (c) The guarantee is to secure a direct contractual liability arising out of a contract between a resident and a non-resident. 17.2 In the case of a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments, approval from the Ministry of Finance, Government of India for issue of guarantee for an amount exceeding USD 100,000 (USD One hundred thousand) or its equivalent would be required. 17 .....

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to as the Scheme) Authorised Dealers may freely allow remittances by resident individuals up to USD 2,50,000 per financial year (April-March) for any permitted current or capital account transactions or a combination of both. 18.2 The Scheme is available to all resident individuals including minors. In case of remitter being a minor, the LRS declaration form must be countersigned by the minor s natural guardian. 18.3 Remittances under the Scheme can be consolidated in respect of family members s .....

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nd hold shares or debt instruments or any other asset including immovable property outside India without prior approval of the Reserve Bank. 18.6 The limit of USD 2,50,000 under the Scheme also includes remittances for current account transactions available to resident individuals under Para 1 of Schedule III to Foreign Exchange Management (Current Account Transactions) Amendment Rules, 2015. If an individual remits any amount under the said Liberalised Remittance Scheme in a financial year, the .....

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resident individual can invest in units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes, etc. under this Scheme. Further, the resident can invest in such securities out of the bank account opened abroad under the Scheme (see 12.13). 18.10 An individual who has availed of a loan abroad while as a non-resident can repay the same on return to India under the Scheme as a resident. 18.11 The Scheme can be used for outward remittance in the form of a DD either in the .....

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s stipulated in FEMA Notification No.263. 18.13 Individuals can also open, maintain and hold foreign currency accounts with a bank outside India for making remittances under the Scheme without prior approval 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. 18.14 Banks should not extend any kind of credit facilities to resident individuals to facilitate capital account remittance .....

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8.17 For undertaking transactions under the Scheme, resident individuals may use the Form A-2 as at Annex-2 and Application-cum-Declaration Form as at Annex-3. It is mandatory to have PAN number to make remittances under the Scheme. 18.18 Investor, who has remitted funds under LRS can retain, reinvest the income earned on the investments. 18.19 AD Category - I banks are required to furnish the information on remittances made under this scheme on a monthly basis, on or before the fifth of the fol .....

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n Section 6 of the Indian Companies Act, 1956] by way of crossed cheque/ electronic transfer subject to the following conditions: (i) the loan is free of interest and the minimum maturity of the loan is one year; (ii) the loan amount should be within the overall limit under the Liberalised Remittance Scheme of USD 2,50,000 per financial year available for a resident individual. It would be the responsibility of the lender to ensure that the amount of loan is within the Liberalised Remittance Sch .....

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uction of farm houses, or d. Trading in Transferable Development Rights (TDRs). Explanation: For the purpose of item (c) above, real estate business shall not include development of townships, construction of residential/ commercial premises, roads or bridges. (v) the loan amount should be credited to the NRO a/c of the NRI / PIO. Credit of such loan amount may be treated as an eligible credit to NRO a/c; (vi) the loan amount shall not be remitted outside India; and (vii) repayment of loan shall .....

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his connection, attention of authorized dealers is drawn to sub-section (5) of Section 10 of the FEMA, 1999 (as indicated in item 3 of Appendix 2) 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 .....

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n is contemplated by the person, report the matter to the Reserve Bank. 20.3 All the facilities (including private/business visits) for release of exchange/remittances for current account transactions available to resident individuals under Para 1 of Schedule III to FEM (CAT) Amendment Rules, 2015, have been subsumed under the overall limit of USD 250,000. However, for emigration; expenses in connection with medical treatment abroad and studies abroad, individuals may avail of exchange facility .....

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ill not be applicable for use of International Credit Cards (ICCs) by residents for making payment towards expenses, while on a visit outside India. 21.2 Residents can use ICCs on internet 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). 21.3 ICCs cannot be used on internet or otherwise for purchase of prohibited items, like .....

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y 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 card issuing agency abroad, and not to a third party. 21.6 The applicable limit will be the credit limit fixed by the ca .....

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ly for permissible current account transactions and the limits as mentioned in the Schedules to the Rules, as amended from time to time, are equally applicable to payments made through use of these cards. 22.2 The IDCs cannot be used on internet for purchase of prohibited items like lottery tickets, banned or proscribed magazines, participation in sweepstakes, payment for call-back services, etc., i.e. for such items/activities for which drawal of foreign exchange is not permitted. A.23 Store Va .....

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d limits under the FEM (CAT) Rules, 2000, as amended from time to time. A.24 Redemption of unutilized balance on prepaid travel cards: 24.1 As per the practice followed by issuers, resident Indians who purchase their travel cards, are permitted refund of the unutilized foreign exchange balance only after 10 days from the date of last transaction and accordingly, this condition is stated in the user guide . Since these cards are expected to act as substitutes for cash/ Travellers Cheques, the fac .....

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transactions till the completion of the respective settlement cycle; and c) Transaction fees / service tax payable in India in Rupees. 24.2 For the amount that are authorized but unclaimed/ not settled by the acquirer, the issuer of such cards can hold such amounts until such transactions are processed/ settled by the acquirers within the prescribed settlement timeframe. A.25 Acquisition of foreign securities under Employees Stock Option (ESOP) Resident individuals who are either employees or di .....

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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. Annex-1 (Para A. 1.1 of Master Circular) Foreign Exchange Management (Current Account Transactions) Rules, 2000 Notification No. G.S.R.381(E) dated 3rd May 2000 (as amended from time to time) In exercise of the powers conferred by Section 5 and sub-section (1) and clause (a) of sub-section (2) of Section 46 of the Foreign Exchange Management Act .....

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99); (b) Drawal means drawal of foreign exchange from an authorised person and includes opening of Letter of Credit or use of International Credit Card or International Debit Card or ATM Card or any other thing by whatever name called which has the effect of creating foreign exchange liability; (c) Schedule means a schedule appended to these rules; (d) The words and expressions not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act .....

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-No person shall draw foreign exchange for a transaction included in the Schedule II without prior approval of the Government of India; Provided that this Rule shall not apply where the payment is made out of funds held in Resident Foreign Currency (RFC) Account of the remitter. 5. Prior approval of Reserve Bank Every drawal of foreign exchange for transactions included in Schedule III shall be governed as provided therein. Provided that this Rule shall not apply where the payment is made out of .....

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le II, or item 1(ii), 2(i), 2(ii) & 2(iv) of Schedule III as the case may be. 7. Use of International Credit Card while outside India Nothing contained in Rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India. Schedule I Transactions which are Prohibited (see rule 3) 1. Remittance out of lottery winnings. 2. Remittance of income from racing/riding etc. or any other hobby. 3. Remittance .....

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ted to "Call Back Services" of telephones. 8. Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme. Schedule II Transactions which require prior approval of the Central Government (see Rule 4) Purpose of Remittance Ministry / Department of Govt. of India whose approval is required 1. Cultural Tours Ministry of Human Resources Development, (Department of Education and Culture) 2. Advertisement in foreign print media for the purposes other than promo .....

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ansport operators making remittance to their agents abroad Registration Certificate from the Director General of Shipping 6. Remittance of hiring charges of transponders by (a) TV Channels (b) Internet Service providers Ministry of Information and Broadcasting Ministry of Communication and Information Technology 7. Remittance of container detention charges exceeding the rate prescribed by Director General of Shipping Ministry of Surface Transport (Director General of Shipping) 8. omitted 9. Remi .....

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vail of foreign exchange facility for the following purposes within the limit of USD 2,50,000 only. Any additional remittance in excess of the said limit for the following purposes shall require prior approval of the Reserve Bank of India. (i) Private visits to any country (except Nepal and Bhutan). (ii) Gift or donation. (iii) Going abroad for employment. (iv) Emigration. (v) Maintenance of close relatives abroad. (vi) Travel for business, or attending a conference or specialised training or fo .....

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e as provided in regulation 4 to FEMA Notification 1/2000-RB, dated the 3rd May, 2000 (here in after referred to as the said Liberalised Remittance Scheme) if it is so required by a country of emigration, medical institute offering treatment or the university, respectively: Provided further that if an individual remits any amount under the said Liberalised Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 (US Dollars Two Hundre .....

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or the purpose of this item, a person resident in India on account of his employment or deputation of a specified duration (irrespective of length thereof) or for a specific job or assignments, the duration of which does not exceed three years, is a resident but not permanently resident: provided also that a person other than an individual may also avail of foreign exchange facility, mutatis mutandis, within the limit prescribed under the said Liberalised Remittance Scheme for the purposes menti .....

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(c) contribution to a technical institution or body or association in the field of activity of the donor Company. (ii) Commission, per transaction, to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or five percent of the inward remittance whichever is more. (iii) Remittances exceeding USD 10,000,000 per project for any consultancy services in respect of infrastructure projects and USD 1,000,000 per project, for other consultancy services procured fr .....

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ule shall be the same as applicable for remitting any amount under the said Liberalised Remittance Scheme. Note: The principal rules were published in Part II, Section 3, Sub-section (i) of Gazette of India, Extraordinary, vide G.S.R. 381(E), dated the 3rd May, 2000. Annex-2 (Para A 2.4 of Master Circular) FORM - A 2 (To be completed by the applicant) FORM A2 (For payments other than imports and remittances covering intermediary trade) Application for Remittance Abroad AD Code No._______________ .....

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anch) Savings Bank/ Current/ RFC/ EEFC A/c. No. _______________________ together with their charges and * a) Issue a draft : Beneficiary's Name____________________________________ Address __________________________________ __________________________________ * b) Effect the foreign exchange remittance directly - 1) Beneficiary's Name __________________________________ 2) Name and address of the bank __________________________________ 3) Account No. __________________________________ * c) .....

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er the Annex Declaration (Under FEMA 1999) I, __________________________________________________ declare that - * (1) The total amount of foreign exchange purchased from or remitted through, all sources in India during this calendar year including this application is within USD _________________ (USD _________________ ______________________________________________________________________________ only) the annual limit prescribed by Reserve Bank of India for the said purpose. * (2) Foreign exchan .....

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) - Government S0019 Acquisition of non-produced non-financial assets (Purchase of intangible assets like patents, copyrights, trademarks etc., use of natural resources) - Non-Government S0026 Capital transfers ( Guarantees payments, Investment Grand given by the government/international organisation, exceptionally large Non-life insurance claims) - Government S0027 Capital transfers ( Guarantees payments, Investment Grand given by the Non-government, exceptionally large Non-life insurance claim .....

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estment in made by overseas Investors India - in debt instruments S0008 Repatriation of Foreign Direct Investment made by overseas Investors in India - in real estate Foreign Portfolio Investments S0001 Indian Portfolio investment abroad - in equity shares S0002 Indian Portfolio investment abroad - in debt instruments S0009 Repatriation of Foreign Portfolio Investment made by overseas Investors in India - in equity shares S0010 Repatriation of Foreign Portfolio Investment made by overseas Invest .....

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6 Sale of a foreign currency against another foreign currency Financial Derivatives and Others S0020 Payments made on account of margin payments, premium payment and settlement amount etc. under Financial derivative transactions. S0021 Payments made on account of sale of share under Employee stock option S0022 Investment in Indian Depositories Receipts (IDRs) S0023 Remittances made under Liberalised Remittance Scheme (LRS) for Individuals External Assistance S0024 External Assistance extended by .....

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ls (with crew) -Shipping companies S0206 Booking of passages abroad - Shipping companies S0207 Payments for surplus freight/passenger fare by foreign Airlines companies operating in India S0208 Operating expenses of Indian Airlines companies operating abroad S0209 Freight on imports - Airlines companies S0210 Freight on exports - Airlines companies S0211 Operational leasing / Rental of Vessels (with crew) - Airline companies S0212 Booking of passages abroad - Airlines companies S0214 Payments on .....

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nd others) S0221 Payments on account of passenger fare under other modes of transport (Internal Waterways, Roadways, Railways, Pipeline transports and others) S0222 Postal & Courier services by Air S0223 Postal & Courier services by Sea S0224 Postal & Courier services by others 2 Travel S0301 Business travel. S0303 Travel for pilgrimage S0304 Travel for medical treatment S0305 Travel for education (including fees, hostel expenses etc.) S0306 Other travel (including holiday trips and .....

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d term life insurance premium S0605 Auxiliary services including commission on insurance S0607 Insurance claim Settlement of non-life insurance; and life insurance (only term insurance) S0608 Life Insurance Claim Settlements S0609 Standardised guarantee services S0610 Premium for pension funds S0611 Periodic pension entitlements e.g. monthly quarterly or yearly payments of pension amounts by Indian Pension Fund Companies. S0612 Invoking of standardised guarantees 5 Financial Services S0701 Finan .....

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omputer and software S0805 News agency services S0806 Other information services- Subscription to newspapers, periodicals S0807 Off-site software imports S0808 Telecommunication services including electronic mail services and voice mail services S0809 Satellite services including space shuttle and rockets etc. 7 Charges for the use of intellectual property n.i.e S0901 Franchises services S0902 Payment for use, through licensing arrangements, of produced originals or prototypes (such as manuscrip .....

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Development services S1009 Architectural services S1010 Agricultural services like protection against insects & disease, increasing of harvest yields, forestry services. S1011 Payments for maintenance of offices abroad S1013 Environmental Services S1014 Engineering Services S1015 Tax consulting services S1016 Market research and public opinion polling service S1017 Publishing and printing services S1018 Mining services like on-site processing services analysis of ores etc. S1020 Commission .....

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ision production, distribution and transmission services S1104 Entertainment services S1105 Museums, library and archival services S1106 Recreation and sporting activities services S1107 Education (e.g. fees for correspondence courses abroad ) S1108 Health Service (payment towards services received from hospitals, doctors, nurses, paramedical and similar services etc. rendered remotely or on-site) S1109 Other Personal, Cultural & Recreational services 10 Govt. not included elsewhere (G. n. i .....

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stitutions S1306 Remittance towards payment / refund of taxes. S1307 Outflows on account of migrant transfers including personal effects 12 Primary Income S1401 Compensation of employees S1402 Remittance towards interest on Non-Resident deposits (FCNR(B)/NR(E)RA, etc.) S1403 Remittance towards interest on loans from Non-Residents (ST/MT/LT loans) e.g. External Commercial Borrowings, Trade Credits, etc. S1405 Remittance towards interest payment by ADs on their own account (to VOSTRO a/c holders o .....

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quity and investment fund shares 13 Others S1501 Refunds / rebates / reduction in invoice value on account of exports S1502 Reversal of wrong entries, refunds of amount remitted for non-exports S1503 Payments by residents for international bidding S1504 Notional sales when export bills negotiated/ purchased/ discounted are dishonored/ crystallised/ cancelled and reversed from suspense account S1505 Deemed Imports (exports between SEZ, EPZs and Domestic tariff areas) 14 Maintenance and repair ser .....

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me of USD 250, 000 (To be completed by the applicant) I. Details of the applicant a. Name ………………………….. b. Address………………………… c. Account No…………………….. d. PAN No…………………………. II. Details of the foreign exchange required 1. Amount (Specify c .....

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………….. Direct remittance………… Others V. Details of the Beneficiary 1. Name …………………….. 2. Address …………………… 3. Country …………………… 4*. Name and address of the bank………………………. 5*. Account No………&hellip .....

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llip; Sl. No…….Date :………Amount :…………. Name and address of AD branch/FFMC through which the transaction has been effected. Declaration I, ………………. …………(Name), hereby declare that the total amount of foreign exchange purchased from or remitted through, all sources in India during the financial year as per item No…….of the Application, is within the overa .....

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the instructions issued by the Reserve Bank from time to time under the Scheme. Name and designation of the authorised official: Stamp and seal Signature: Date: Place: Annex-4 Operational Instructions for Authorised Dealer Banks Master Circular on Miscellaneous Remittances from India - Facilities for Residents 1. General Authorised Dealers may carefully study the provisions of the Act / Regulations / Notifications issued under Foreign Exchange Management Act, 1999. Reserve Bank will not prescri .....

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satisfy him that the transaction is not designed to contravene or evade the provisions of the Act or any of the Rules or Regulations made or Notifications or directions or orders issued under the Act. Authorised Dealers should preserve the information / documents obtained by them from the applicant before undertaking the transactions for verification by the Reserve Bank. In case the person on whose behalf the transaction is being undertaken refuses or does not give satisfactory compliance of th .....

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their branches to ensure compliance with provisions of sub-section (5) of section 10 of the Act. In terms of the Rule 3 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, as amended from time to time, drawal of foreign exchange for the transactions included in Schedule I thereto is prohibited. Authorised Dealers may release foreign exchange for transactions included in Schedule II to the Rules, provided the applicant has secured the approval from the Ministry/Departme .....

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uced from USD 250,000 by the amount so remitted. However, for emigration; expenses in connection with medical treatment abroad and studies abroad, individuals may avail of exchange facility for an amount in excess of the overall limit prescribed under the LRS, if it is so required by a country of emigration; medical institute offering treatment or the university respectively. Authorised Dealers may allow remittances up to USD 2,50,000 under LRS on the basis of submission of Application cum decla .....

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xchange not exceeding USD 25,000 or its equivalent, for all permissible current account transactions. Authorised Dealers may obtain a simple letter from the applicant containing the basic information, viz., names and the addresses of the applicant and the beneficiary, amount to be remitted and the purpose of remittance. 3. Liberalized Remittance Scheme for Resident Individuals The remittance under the Scheme is available to the resident individuals for any permitted current or capital account tr .....

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l of the Reserve Bank. They can also open, maintain and hold foreign currency accounts with banks outside India. However remittance from India for margin or margin calls to overseas exchanges/overseas counterparty are not allowed under the scheme. The individual will have to designate a branch of an AD through which all the remittances under the scheme will be made. It is mandatory to have PAN number to make remittances under the Scheme. While allowing the facility to resident individuals, Autho .....

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ue 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. The Authorised Dealer should ensure that the payment is received out of funds belonging to the person seeking to make the remittance .....

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nish information on the number of applicants and total amount remitted under the Scheme, on a monthly basis, to the Reserve Bank of India, through the Online Return Filing System (ORFS). APPENDIX-1 List of circulars, which have been consolidated in the Master Circular- Miscellaneous Remittances from India - Facilities for Residents http://www.rbi.org.in/Scripts/BS_ApCircularsDisplay.aspx http://www.rbi.org.in/Scripts/Bs_FemaNotifications.aspx Sl. No. Circular No. Title Date 1. A.P.(DIR Series) C .....

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rsement on Passport November 23, 2001 6. A.P.(DIR Series) Circular No.53 Use of Credit Cards June 27, 2002 7. A.P.(DIR Series) Circular No.16 Release of Foreign Exchange for Small Value Remittances September 12, 2002 8. A.P. (DIR Series) Circular No.17 Liberalisation of Release of Foreign Exchange for Medical Treatment Abroad September 12, 2002 9. A.P. (DIR Series) Circular No.37 Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals November 1, 2002 10. A.P.(DIR Series .....

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ertaking and certificate November 26,2002 14. A.P. (DIR Series) Circular No.64 Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals December 24, 2002 15. A.P. (DIR Series) Circular No.65 Foreign Exchange Management Act, 1999 - Advance Remittances for Services to be Rendered January 6, 2003 16. A.P. (DIR Series) Circular No.73 Foreign Exchange Management Act, 1999 - Current Account Transactions - Use of International Credit Cards abroad January 24, 2003 17. A.P. (DIR S .....

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t Transactions - Liberalisation November 13, 2003 22. A.P. (DIR Series) Circular No.55 Release of Foreign Exchange for Miscellaneous Remittances December 23, 2003 23. A.P. (DIR Series) Circular No.64 Liberalised Remittance Scheme of USD 25,000 for Resident Individuals February 4, 2004 24. A.P. (DIR Series) Circular No.71 Export of Goods to Russia against Repayment of State Credits in Rupees - Payment of Agency Commission February 20, 2004 25. A.P. (DIR Series) Circular No.76 Foreign Exchange Man .....

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Foreign Securities by Resident Individuals under ESOP Scheme May 3, 2004 29. A.P. (DIR Series) Circular No.20 Foreign Exchange Management Act (FEMA), 1999 - Current Account Transactions - Remittance of Hiring Charges of Transponders - Procedural Changes October 25, 2004 30. A.P. (DIR Series) Circular No.38 Liberalised Remittance Scheme of USD 25,000 for Resident Individuals March 31, 2005 31. A.P. (DIR Series) Circular No.46 Use of International Debit Cards/Store Value Cards/Charge Cards/Smart C .....

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Resident Individuals December 20, 2006 36. A.P. (DIR Series) Circular No. 38 Foreign Exchange Management Act (FEMA), 1999 Current Account Transaction Rules - Amendment April 5, 2007 37. A.P. (DIR Series) Circular No. 58 Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2000 May 18, 2007 38. A.P. (DIR Series) Circular No. 9 Liberalised Remittance Scheme for Resident Individuals- Enhancement of limit from USD 100,000 to USD 200,000 September 26 .....

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pees December 10, 2008 43. A.P. (DIR Series) Circular No.10 Foreign Exchange Management Act, 1999 - Advance Remittance for import of Services October 5, 2009 44. A.P. (DIR Series) Circular No.11 Issue of Bank Guarantee on behalf of service importers October 5, 2009 45. A.P. (DIR Series) Circular No. 50 A.P.(FL Series) Circular No. 7 Release of Foreign Exchange for Visits Abroad - Currency Component May 4, 2010 46. A.P. (DIR Series) Circular No.52 Foreign Exchange Management Act (FEMA), 1999 Curr .....

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eptember 16, 2011 50. A,P. (DIR Series) Circular No. 18 Loans in Rupees by resident individuals to NRI close relatives September 16, 2011 51. A.P. (DIR Series) Circular No. 32 Liberalised Remittance Scheme for Resident Individuals- Revised Application cum Declaration form October 10, 2011 52. A.P. (DIR Series) Circular No. 37 (i) Repatriation of income and sale proceeds of assets held abroad by NRIs who have returned to India for permanent settlement (ii) repatriation of income and sale proceeds .....

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us Remittances May 7, 2012 56. A.P. (DIR Series) Circular No. 106 Liberalised Remittance Scheme for Resident Individuals - Reporting May 23, 2013 57. A.P. (DIR Series) Circular No.24 Liberalised Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000 August 14, 2013 58. A.P. (DIR Series) Circular No. 32 Liberalized Remittance Scheme - Clarifications September 4, 2013 59. A.P. (DIR Series) Circular No. 138 LRS for resident individuals-Increase in the limit fr .....

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from USD 125,000 to USD 250,000 and rationalisation of current account transactions. II. Remittance facilities for persons other than individuals June 01, 2015 APPENDIX-2 1. Section 5 of FEMA, 1999 Current Account Transactions Any person may sell or draw foreign exchange to or from an authorised person if such sale or drawal is a current account transaction: Provided that the Central Government may, in public interest and in consultation with the Reserve Bank, impose such reasonable restrictions .....

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