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Master Direction - Other Remittance Facilities (Updated as on May 06, 2026)
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.... modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/constituents with a view to implementing the regulations framed. 3. Instructions issued on remittance facilities for residents have been compiled in this Master Direction. The list of underlying circulars/ notifications which form the basis of this Master Direction is furnished in the Appendix. Reporting instructions can be found in Master Directions on reporting (Master Direction No. 18 dated January 01, 2016) 4. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/ constituents. The Master Direction issued herewith shall be amended suitably simultaneously. Yours faithfully, (N. Senthil Kumar) Chief General Manager INDEX Sr. No. Contents 1. Release of Foreign Exchange by Authorised Dealers 2. [Omitted] 3. Remittance facilities for resident individuals 3.1 Travel 3.2 R....
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....ange up to the threshold ceilings specified in Schedule III stands delegated to the Authorised Dealer 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 Rules, Regulations made and Direction issued under the Act apply to the use of ICC, IDC and ATM Cards. 1.3 Release of foreign exchange is not admissible for travel to and transaction with residents of Nepal and Bhutan. 1.4 Prohibition: Remittances in any form towards participation in lottery schemes are prohibited under the Foreign Exchange Management Act, 1999. Further, these restrictions are also applicable to remittances for participation in lottery like schemes existing under different names like money circulation scheme or remittances for the purpose of securing prize mo....
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.... dated January 1, 2016]. Release of foreign exchange exceeding USD 2,50,000, requires prior permission from the Reserve Bank of India. 3.1 Travel: 3.1.1 Out of the overall foreign exchange (USD 250,000 per financial year) being sold to a traveller, exchange in the form of foreign currency notes and coins may be sold up to the limit indicated below: • Travellers proceeding to countries other than Iraq, Libya, Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States - not exceeding USD 3000 per visit or its equivalent. • Travellers proceeding to Iraq or Libya - not exceeding USD 5000 per visit or its equivalent. • Travellers proceeding to Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States - full exchange may be released. • Travellers proceeding for Haj/Umrah pilgrimage- full amount of entitlement in cash or up to the cash limit as specified by the Haj Committee of India, may be released. 3.1.2 Authorised Dealers may remit foreign exchange up to a reasonable limit, at the request of a traveller towards his hotel accommodation, t....
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.... 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. 3.3. Meeting of medical expenses of NRI close relatives by resident individuals Where the medical expenses in respect of NRI close relative (relative as defined in ^3Section 2 (77) of the Companies Act, 2013) are paid by a resident individual, such a payment being in the nature of a resident to resident transaction may be covered under Regulation 3(3) of Notification No. FEMA 14(R)/2023-RB dated December 21, 2023, as amended from time to time^4. 3.4. International Credit Cards/International Debit Cards/Store value cards etc. by Authorised Dealers in India: 3.4.1. International Credit Cards (ICC) • The restrictions contained in Rule 5 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000 will not be applicable for use of International Credit Cards (ICCs) by residents for making payment towards expenses, while on a visit outside India. • Res....
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.... of these cards. • 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. 3.4.3. Use of credit / debit cards for payments for airline tickets In certain cases where the payment for the tickets are made by the residents using credit /debit card, Card Companies have been providing arrangements to the foreign airlines operating in India to select the country and currency of their choice, in respect of transactions arising from the sale of the air tickets in India in Indian Rupees (INR). In such transactions, the overseas bank as the acquiring bank receives the funds from card issuing company in its Vostro account maintained with an Authorised Dealer bank in India or in its foreign currency account maintained abroad and makes the payment in foreign currency overseas to the foreign airline. This practice adopted by foreign airlines is not in conformity with the extant provisions of the Foreign Exchange Management Act, 1999. AD Category- I banks may, ....
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....us three financial years or USD 5,000,000, whichever is less, for (a) creation of Chairs in reputed educational institutes, (b) contribution to funds (not being an investment fund) promoted by educational institutes; and (c) contribution to a technical institution or body or association in the field of activity of the donor Company. Any additional remittance in excess of the same shall require prior approval of the Reserve Bank of India. Applications for remittances for purposes other than those specified above may be forwarded to the Chief General Manager, Reserve Bank of India, Central Office, Foreign Exchange Department, Foreign Investments Division (EPD), Central Office Building, Mumbai-400 001, together with (a) details of their foreign exchange earnings during the last 3 years, (b) brief background of the company's activities, (c) purpose of the donation and (d) likely benefits to the corporate.^6 4.2. Commission to agents abroad for sale of residential flats or commercial plots in India Remittances by persons other than individuals shall require prior approval of the Reserve Bank of India if commission per transaction to agents abroad for sale of residential flats or c....
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.... of their commission, to the issuers of the telephone cards. 4.9. Liberalization of foreign technical collaboration agreements AD Category-I banks may permit drawal of foreign exchange by persons for payment of royalty and lump-sum payment under technical collaboration agreements without the approval of Ministry of Commerce and Industry, Government of India. 4.10. Drawal of foreign exchange for remittance for purchase of trademark or franchise in India AD Category-I banks may permit drawal of foreign exchange by person for purchase of trademark or franchise in India without approval of the Reserve Bank. 4.11. Remittances for making tour arrangements by agents 4.11.1. 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 accommodation or making other tour arrangements for travel from India, provided 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 Directio....
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....eing undertaken that will reasonably 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. 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. 6.3. In case the person on whose behalf the transaction is being undertaken refuses or does not give satisfactory compliance of the requirements of an authorised person, he shall refuse in writing to undertake the transactions and shall, if he has reasons to believe that any contravention / evasion is contemplated by the person, report the matter to the Reserve Bank. 6.4. For payments other than imports and remittances covering intermediary trade transactions, applicant needs to fill up Form A2 (Annex 2). The Form A2 should be retained for a period of one year by the Authorised Persons, together with the rel....
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.... person for the following purpose is prohibited, namely: a. a transaction specified in the Schedule I; or b. a travel to Nepal and/or Bhutan; or c. a transaction with a person resident in Nepal or Bhutan. Provided that the prohibition in clause (c) may be exempted by RBI subject to such terms and conditions as it may consider necessary to stipulate by special or general order. 4. Prior approval of Government of India---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 funds held in Resident Foreign Currency (RFC) Account of the remitter. 6. (1) Nothing contained in Rule 4 or Rule 5 shall apply to drawal made out of funds held in Exchange Earners' Foreign Currency (EEFC) account of the remitter. (2) Notwithst....
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....te 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. Remittance of prize money/sponsorship of sports activity abroad by a person other than International / National / State Level sports bodies, if the amount involved exceeds USD 100,000. Ministry of Human Resources Development (Department of Youth Affairs and Sports) 10. Omitted 11. Remittance for membership of P&I Club Ministry of Finance (Insurance Division) SCHEDULE III (See rule 5) Notified by GOI Notification No. G.S.R 426(E) dated May 26, 2015 Facilities for individuals- 1. Individuals can avail 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 o....
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....he purposes mentioned herein above. Facilities for persons other than individual - 2. The following remittances by persons other than individuals shall require prior approval of the Reserve Bank of India. (i) Donations exceeding one per cent. of their foreign exchange earnings during the previous three financial years or USD 5,000,000, whichever is less, for- • creation of Chairs in reputed educational institutes, • contribution to funds (not being an investment fund) promoted by educational institutes; and • 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 from outside India. Explanation:-For the purposes of this sub-paragraph, the expression "infrastructure' shall mean as defined in expl....
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....ries) Circular No.7 Current Account Transactions - Liberalisation - Clarifications August 12, 2003 16. A.P. (DIR Series) Circular No.8 Foreign Exchange Management Act, 1999 August 16, 2003 17. A.P. (DIR Series) Circular No.33 Foreign Exchange Management Act, 1999 - Current Account Transactions - Liberalisation November 13, 2003 18. A.P. (DIR Series) Circular No.64 Liberalised Remittance Scheme of USD 25,000 for Resident Individuals February 4, 2004 19. 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 20. A.P. (DIR Series) Circular No.76 Foreign Exchange Management Act (FEMA), 1999 - Current Account Transactions - Liberalisation February 24, 2004 21. A.P. (DIR Series) Circular No.77 Foreign Exchange Management Act, 1999 - Guidelines for Compilation of R-Returns March 13, 2004 22. A.P. (DIR Series) Circular No.86 FEMA 1999 - Current Account Transactions - Remittance for maintenance of close relatives abroad- Requests of Indian Nationals on deputation to India from Overseas Companies Apri....
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.....P. (DIR Series) Circular No. 48 Acquisition of credit card/debit card transactions in India by overseas banks - payments for airline tickets April 5, 2011 40. A.P. (DIR Series) Circular No. 17 Gift in Rupees by Resident Individuals to NRI close relatives September 16, 2011 41. A.P. (DIR Series) Circular No. 18 Loans in Rupees by resident individuals to NRI close relatives September 16, 2011 42. A.P. (DIR Series) Circular No. 32 Liberalised Remittance Scheme for Resident Individuals- Revised Application cum Declaration form October 10, 2011 43. 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 of assets acquired abroad through remittances under Liberalised Remittance Scheme - Clarification October 19, 2011 44. A.P. (DIR Series) Circular No. 90 Clarification - Liberalised Remittance Scheme for Resident Individuals March 6, 2012 45. A.P. (DIR Series) Circular No. 102 Use of International Debit Cards/Store Value Cards/Charge Cards/Smart ....
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....cient customer service, the Reserve Bank has decided to grant licenses to certain entities by authorising them as Authorised Dealer - Category II to undertake a range of non-trade current account transactions. Accordingly, Authorised Dealer - Category II are authorised to release / remit foreign exchange for the following non-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 educational tie up arrangements with universities abroad, (k) Remittance towards fees for 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 fee....