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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 ..... l 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 APPENDIX-2 A.1 General 1.1 For release of foreign exchange to persons resident in India for various current account transactions, Authorised Dealer banks are to be guided by the Rules made by the Government of India under Section 5 of the Foreign Exchange Management Act, 1999 (as indicated in item 1 of Appendix 2)which are detailed in the Foreign Exchange Management (Current Account Trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 purposes on the basis of a declaration given by the traveller regarding the amount of foreign exchange availed of during the financial year. 2.2 In case of issue of travellers cheques, the traveller should sign the cheques in the presence of an authorised official and the purchaser's acknowledgement for receipt of the travellers cheques should be held on record. 2.3 Out of the overall foreign exchange being sold to a traveller, excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 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. 7.2 General permission is available to any resident individual to surrender received / realised / unspent / unused foreign exchange to an Authorised Person within a period of 180 days from the date of receipt / realisation / purchase / acquisition / ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, 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 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 concerned from an Authorised Person (including exchange drawn for private travel abroad), in accordance with the Rules, Regulations and Directions in force. 9.2 Authorised Dealers may effect remittances at the request of agents in India who have tie-up arrangements with hotels / agents, etc., abroad for providing hotel accommodat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifty 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 the limits (credit / prepaid cards) prescribed by the bank and c) the purchaser of foreign currency / foreign currency TCs and the credit/debit/prepaid card holder is one and the same person. Note: Where the rupee equivalent of foreign exchange drawn exceeds Rs 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.11 Advance Remittance - Import of services Authorised Dealers (Category-I banks) may allow advance remittance for import of services. However, where the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nors. 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 and hold immovable property or shares (of listed companies or otherwise) or debt instruments or any other asset outside India without prior approval of the Reserve Bank. 13.6 The limit of USD 200,000 under the Scheme also include remittances towards gift and donation by a resident individual. 13.7 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. 13.8 The Scheme can also be used for remittance of funds for acquisition of ESOPs. The Scheme is in addition to acqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lding, 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 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, notification, direction or order issued there under. 14.2 Authorised Dealers are also required to keep on record any information / documentation, on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 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 card issuing agency abroad, and not to a third party. 16.6 The applicable limit will be the credit limit fixed by the card issuing banks. There is no monetary ceiling fixed by the Reserve Bank for remittances, if any, under this facility. 16.7 Use of ICC for payment in foreign exchange in Nepal and Bhutan is not permitted. A.17 International Debit Cards 17.1 Banks authorised to deal in foreign exchange are issuing International Debit Cards (IDCs) which can be used by a resident for drawing cash or making payment to a merchant establishment overseas during his visit abroad. It is clarified that IDCs can be used only for permissible current account transactions and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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