Capital account transaction restrictions bar specified foreign exchange dealings and foreign investments, with limited resident drawal subject to RBI conditions. Regulation 4 prohibits undertaking, selling or drawing foreign exchange for capital account transactions except as provided; resident individuals may draw foreign exchange up to a Reserve Bank determined annual limit for Schedule I capital account transactions, with such drawals subsuming certain current account items and barred from remittance to FATF designated non cooperative countries. Drawals above the limit are governed by transaction specific ceilings. The regulation also forbids non resident investment in specified activities including chit funds, Nidhi companies, agriculture/plantation, real estate business, construction of farmhouses and trading in TDRs, while exempting certain real estate development activities and permitting NRI non repatriation subscriptions to chit funds subject to RBI conditions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital account transaction restrictions bar specified foreign exchange dealings and foreign investments, with limited resident drawal subject to RBI conditions.
Regulation 4 prohibits undertaking, selling or drawing foreign exchange for capital account transactions except as provided; resident individuals may draw foreign exchange up to a Reserve Bank determined annual limit for Schedule I capital account transactions, with such drawals subsuming certain current account items and barred from remittance to FATF designated non cooperative countries. Drawals above the limit are governed by transaction specific ceilings. The regulation also forbids non resident investment in specified activities including chit funds, Nidhi companies, agriculture/plantation, real estate business, construction of farmhouses and trading in TDRs, while exempting certain real estate development activities and permitting NRI non repatriation subscriptions to chit funds subject to RBI conditions.
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