RBI Guidelines

Forex Facilities for Residents (Individuals) (As on Oct 1, 2003)

Private Travel
Foreign exchange up to US$ 10,000 is permissible in any calendar year for tourism or private
travel to any country other than Nepal and Bhutan on the basis of self-certification. When
traveling to Nepal and Bhutan, you can carry as much Indian currency as you wish, except
currency notes with denominations of Rs.500 and above.

Study Abroad / Medical treatment abroad / Employment abroad / Emigration /

Maintenance of close relatives abroad
Foreign exchange up to US$ 100,000 is permissible on the basis of self-certification. For students
the limit of $100,000 is applicable for each academic year. For medical treatment in addition to
$100,000, foreign exchange up to US$ 25,000 can be taken for meeting boarding/lodging/travel
expenses of the patient and also for the accompanying attendant on self-certification. Amounts in
excess of the limits can be released on basis of documentary evidence of requirement.

Remittance for Miscellaneous Purposes up to US$ 5000

Remittances can be made up to US$ 5000, for any miscellaneous purpose, without furnishing
documents.

Donations
Donations can be made to anybody up to US$ 5,000 every year per remitter on self certification.

International Credit Cards

International Credit Cards can be used for:

meeting expenses or making purchases while abroad without any limit.

making payments in foreign exchange for purchase of books and other items through the
Internet.

Residents holding a foreign currency account in India or with an overseas bank, are free to obtain
ICCs issued by overseas banks and other reputed agencies.

Surrender of Foreign Exchange on Return

Foreign exchange up to US$ 2,000, in the form of foreign currency notes or travellers' cheques
(TCs) can be retained indefinitely for future use. Amounts in excess of $2000 have to be
surrendered to a bank within 90 days and TCs within 180 days of return or credited to RFC(D)
account. Foreign coins can be retained indefinitely without any limit.
Resident Foreign Currency (Domestic) Account

Residents can open Resident Foreign Currency (Domestic) Account with a bank in India for
crediting:

unspent balances after travel abroad

currency ,TCs, bank drafts received as gifts from or for services rendered to non resident
while in India

foreign exchange earnings received, through banking channel, as honorarium,
consultancy, royalty, for any services or towards exports of goods

RFC(D) accounts are NOT interest bearing and there is no ceiling on the balances that can be
built up in these accounts. The balances held in these accounts can be used for any purpose for
which foreign exchange can be bought from a bank in India.

Click here to know how to open an RFC Domestic account.

Liberalised Remittance Scheme of USD 100,000/- for Resident Individuals

RBI has recently come out with a scheme vide their circular AP (Dir. Series) Circular no 51 dated
08th May 2007, whereby individuals may remit up to USD 100,000/- per financial year for any
current or Capital account transaction or a combination of both.

Eligibility
All Resident individuals are eligible to avail of the facility under the scheme. This facility is not
available to Corporates, Partnership firms, HUF, Trusts etc.

Purpose
This facility is available for making remittance up to USD 100,000/- per financial year for any
current or Capital account transactions or a combination of both.

Under this facility, Resident Indians will be free to acquire and Hold immovable property or
shares or any other asset outside India without prior approval of the Reserve Bank of India.
Individuals will also be able to maintain and hold foreign currency accounts with a bank outside
India for making remittances under the scheme without prior approval of the Reserve Bank of
India. The foreign currency account may be used for conducting transactions connected with or
arising from remittances eligible under the scheme.

Please note that this facility is available in addition to those already available for private travel,
business travel, donations, studies abroad, medical treatment etc. as described in the Schedule III
of FEMA (current account transactions) Rules 2000.
The remittance under this scheme is not available for the following:

i. Remittance for any purpose specifically prohibited under Schedule-I (like purchase of
lottery/sweep stakes, tickets proscribed magazines etc) or any item restricted under
Schedule II of Foreign Exchange Management (Current Account Transactions) Rules,
2000.
ii. Remittances made directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan.
iii. Remittances made directly or indirectly to countries identified by the Financial Action
Task Force (FATF) as "non co-operative countries and territories" viz. Cook Islands,
Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines and Ukraine.
iv. 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.

Procedure to be followed to effect remittances under this category:

When a customer approaches a branch for a remittance under this Scheme the following
procedures must be followed:

a. The customer must designate a branch of an Authorised Dealer through which all
remittances under this scheme will be transacted. This is incorporated in the Format
declaration itself (Schedule A) and needs to be filled in by the customer.
b. The customer who needs to make this remittance will furnish the following
documentation.

RBI prescribed letter cum declaration in the format as per Annexure A. -

regarding the purpose of the remittance and declaration that the funds belong to
the remitter and will not be used for any of the restricted purposes as stated above

Liberalised Remittance Scheme for Resident Individuals- Enhancement of limit from USD
100,000 to USD 200,000

Circular No RBI/2007-08/146 A. P. (DIR Series) Circular No.9 dated September 26, 2007

1. Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P. (DIR

Series) Circular No. 51 dated May 8, 2007 on the Liberalised Remittance Scheme for Resident
Individuals (the Scheme).

2. With a view to further liberalize the Scheme it has been decided, in consultation with the
Government of India, to enhance the existing limit of USD 100,000 per financial year to USD
200,000 per financial year (April - March) with immediate effect. Accordingly, AD Category-I
banks may now allow remittance up to USD 200,000, per financial year, under the Scheme, for
any permitted current or capital account transaction or a combination of both.

3. All other terms and conditions mentioned in A. P. (DIR Series) Circular No. 64 dated February
4, 2004, A. P. (DIR Series) Circular No. 24 dated December 20, 2006 and A. P. (DIR Series)
Circular No. 51 dated May 8, 2007 shall remain unchanged.
4. Necessary amendments to Foreign Exchange Management (Permissible Capital Account
Transactions) Regulations, 2000 (Notification No. FEMA 1/2000- RB dated 3rd May 2000) are
being notified separately.

5. AD - Category I banks may bring the contents of this circular to the notice of their constituents
and customers concerned.

6. The directions contained in this Circular have been issued under Section 10 (4) and 11 (1) of
the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to
permissions / approvals, if any, required under any other law.