Liberalised Remittance Scheme of USD 50,000 for Resident Individuals
With a view to simplifying the procedures and providing greater flexibility in foreign exchange transactions, under the Liberalised Remittance Scheme Reserve Bank of India in December 2006, has enhanced the limit of USD 25,000 per calendar year to USD 50,000 per financial year (April- March) for resident individuals, for any current or capital account transactions or a combination of both.
In addition, as a measure of rationalization, it has also been decided that
a) Limit of USD 50,000 under the Scheme would also include remittances towards gift and donation by a resident individual.
b) Investment by resident individual in overseas companies would be subsumed under the Scheme of USD 50,000. The requirement of 10 per cent reciprocal shareholding in the listed Indian companies by such overseas companies has been dispensed with.
Accordingly, AD – Category I banks may allow remittance of USD 50,000 per financial year (April- March) by a resident individual under the revised Scheme.
3. In addition, the existing facility of release of exchange by Authorised Persons up to USD 10,000 or its equivalent in one calendar year on a declaration basis for one or more private visits to any country (except Nepal and Bhutan) will continue to be available on a self-declaration basis. However, the facility would be now available on a financial year (April-March) basis.
4. RBI has further clarified that all banks, both Indian and foreign, including those not having an operational presence in India should seek prior approval from the Reserve Bank for the schemes being marketed by them in India to residents either for soliciting foreign currency deposits for their foreign/overseas branches or for acting as agents for overseas mutual funds or any other foreign financial services company.
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