TaxTMI 
TaxTMI 
TaxTMI 
Master Direction - Other Remittance Facilities (Updated as on March 10, 2026)
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....ign 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. Release of Foreign Exchange by Authorised Dealer Category II 3. Remittance facilities for resident individuals 3.1 Travel ....
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....ing the specified limits. The release of foreign exchange 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 ....
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....mittance by tour operators / travel agents to overseas agents / principals / hotels, • Business travel, • Fee for participation in global conferences and specialized training, • Remittance for participation in international events / competitions (towards training, sponsorship and prize money), • Film shooting, • Medical treatment abroad, • Disbursement of crew wages, Overseas education, Remittance under educational tie up arrangements with universities abroad, • Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL, etc. Employment and processing, assessment fees for overseas job applications, Emigration and emigration consultancy fees, Skills / credential assessment fees for intending migrants, • Visa fees, • Processing fees for registration of documents as required by the Portuguese / other Governments, • Registration / subscription / membership fees to International Organisations. 3. Remittance facilities for resident individuals: Remittances for current accou....
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....hich drawal of foreign exchange is permitted under the relevant Rules / Regulation. (ii) 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 / date of return of the traveller, as the case may be. 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. (iii) The liberalised uniform time limit of 180 days is applicable only to resident individuals and in areas other than export of goods and services. In all other cases, the regulations / directions on surrender requirement shall remain unchanged. (Notification No. FEMA 9(R)/2015-RB dated December 29, 2015, as amended from time to time)^1 3.1.4 Unspent foreign exchange A returning traveller is permitted to retain with him, foreign currency, travellers' cheques and currency n....
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....no drawal of foreign exchange is permitted for such items/activities. • There is no aggregate monetary ceiling separately prescribed for use of ICCs through internet. • Resident individuals maintaining foreign currency accounts with 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. 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. • Use of ICC for payment in foreign exchange in Nepal and Bhutan is not permitted. • ADs may issue ICCs to NRIs/PIOs, without prior approval of the Reserve Bank, s....
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....for drawing cash from ATM terminals. No prior permission from the Reserve Bank is required for issue of such cards. However, the use of such cards is limited to permissible current account transactions and subject to the prescribed limits under the FEM (CAT) Rules, 2000, as amended from time to time. The fees/charges payable in India, on such instruments/cards, have to be denominated and settled in Rupees only^4. 3.4.5. Redemption of unutilized balance on prepaid travel cards: Resident Indians who purchase their travel cards, are permitted refund of the unutilized foreign exchange balance only after 10 days from the date of last transaction and accordingly, this condition is stated in the "user guide". Since these cards are expected to act as substitutes for cash/ Travellers Cheques, the facilities available to the user will have to be similar. Accordingly, all such Authorised Persons shall redeem the unutilized balance outstanding in the cards immediately upon request by the resident Indians to whom the cards are issued subject to retention of: • Amounts that are authorized and remain unclaimed/ not settled by the acquirers as of the date of....
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....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 explanation to para 1(iv)(A)(a) of Schedule I of FEMA Notification 3/2000-RB, dated the May 3, 2000, as amended from time to time. 4.4. Remittances towards re-imbursement of pre-incorporation expenses Remittances by persons other than individuals shall require prior approval of the Reserve Bank of India for remittances exceeding five per cent of investment brought into India or USD 100,000 whichever is higher, by an entity in India by way of reimbursement of pre-incorporation expenses. 4.5. Payment of fees in foreign currency - Embassy affiliated educational institutions Authorised Dealers may sell foreign exchange towards payment of fees to schools/educational institutions under the administrative control of foreign embassies. 4.6. Remittance towards payments of collected subscription to overseas TV media company Authorised dealers may allow cable operators or collection agents in India of overseas TV media companies....
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.... provided:- i) the credits to the account are by way of depositing • collections made in foreign exchange from travellers; and • refunds received from outside India on account of cancellation of bookings / tour arrangements, etc., and ii) the debits in foreign exchange are for making payments towards hotel accommodation, tour arrangements, etc., outside India. 4.11.3. Authorised Dealer may allow tour operators to remit the cost of rail/ road/ water/transportation charges outside India without any prior approval from the Reserve Bank, net of commission/ mark up due to the agent. The sale of passes/ ticket in India can be made either against the payment in Indian Rupees or in foreign exchange released for visits abroad. 4.11.4. In respect of consolidated tours arranged by travel agents in India for foreign tourists visiting India and neighbouring countries like Nepal, Bangladesh, Sri Lanka, etc., against advance payments/ reimbursement through an Authorised Dealer, part of the foreign exchange received in India against such consolidated tour arrangement, may require to be remitted from India to these neighbouring countries....
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.... all cross-border remittances, irrespective of the value of transaction, and other related documents, if and as may be necessary, subject to provisions of Section 10(5) of FEMA 1999. They shall frame appropriate internal guidelines, with the approval of their Board, for the purpose. The Authorised Dealers shall continue to comply with the relevant provisions of FEMA 1999 and Know Your Customer (KYC) guidelines^8, issued by RBI for all transactions. 7. Income- tax clearance Reserve Bank of India will not issue any instructions under the FEMA, regarding the procedure to be followed in respect of deduction of tax at source while allowing remittances to the non-residents. It shall be mandatory on the part of Authorised Dealers to comply with the requirement of the tax laws, as applicable. Annex -1 Foreign Exchange Management (Current Account Transactions) Rules, 2000 Notification No. G.S.R.381 (E) dated May 3, 2000 (as amended from time to time) In exercise of the powers conferred by Section 5 and sub-section (1) and clause (a) of sub-section (2) of Section 46 of the Foreign Exchange Management Act, 1999, and in consultation with t....
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....ter. (2) Notwithstanding anything contained in sub-rule (1), restrictions imposed under rule 4 or rule 5 shall continue to apply where the drawal of foreign exchange from the Exchange Earners Foreign Currency (EEFC) Account is for the purpose specified in items 10 and 11 of Schedule II, or item 3, 4, 11, 16 & 17 of Schedule III as the case may be. 7. Use of International Credit Card while outside India Nothing contained in Rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India. Schedule I Transactions which are Prohibited (see Rule 3) 1. Remittance out of lottery winnings. 2. Remittance of income from racing/riding etc. or any other hobby. 3. Remittance for purchase of lottery tickets, banned /proscribed magazines, football pools, sweepstakes, etc. 4. Payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies. 5. Remittance of dividend by any company to which the requirement of dividend balancing i....
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....ollowing 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 of the Reserve Bank of India. • Private visits to any country (except Nepal and Bhutan). • Gift or donation. • Going abroad for employment. • Emigration. • Maintenance of close relatives abroad. • Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up. • Expenses in connection with medical treatment abroad. • Studies abroad. • Any other current account transaction Provided that for the purposes mentioned at item numbers (iv), (vii) and (viii), the individual may avail of exchange facility for an amount in excess of the limit prescribed under the Liberalised Remittance Scheme as provided in regulation 4 to FEMA Notification 1/2000-RB, dated the 3rd May, 2000 (here in after referred to as the said Liberalised....
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.... 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 explanation to para 1(iv)(A)(a) of Schedule I of FEMA Notification 3/2000-RB, dated the May 3, 2000. (iv) Remittances exceeding five per cent of investment brought into India or USD 100,000 whichever is higher, by an entity in India by way of reimbursement of pre-incorporation expenses." 3. Procedure The procedure for drawal or remit of any foreign exchange under this schedule shall be the same as applicable for remitting any amount under the said Liberalised Remittance Scheme. Note: The principal rules were published in Part II, Section 3, Sub-section (i) of Gazette of India, Extraordinary, vide G.S.R. 381(E), dated the 3rd May, 2000. APPENDIX Sl. No. Circular No. Title Date 1. A.P.(DIR Series) Circular No.1 Foreign Exchange Management Act (FEMA), 1999 June 1, 2000 2. A.P.(DIR Series) Circular No.19 Foreign Exchange Management Act, 1999 - Foreign T....
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.....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 April 17, 2004 23. A.P. (DIR Series) Circular No.20 Foreign Exchange Management Act (FEMA), 1999 - Current Account Transactions - Remittance of Hiring Charges of Transponders - Procedural Changes October 25, 2004 24. A.P. (DIR Series) Circular No.38 Liberalised Remittance Scheme of USD 25,000 for Resident Individuals March 31, 2005 25. A.P. (DIR Series) Circular No.46 Use of International Debit Cards/Store Value Cards/Charge Cards/Smart Cards by Resident Indians while on a visit outside India June 14, 2005 26. A.P. (DIR Series) Circular No.25 Authorised Persons- Categorisation March 6, 2006 27. A.P. (DIR Series) Circular No. 14 Foreign Exchange Man....
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.... 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 Cards by Resident Indians while on a visit outside India April 2, 2012 46. A.P. (DIR Series) Circular No. 106 Liberalised Remittance Scheme for Resident Individuals - Reporting May 23, 2013 47. A.P. (DIR Series) Circular No.24 Liberalised Remittance Scheme for Resident Individuals- Reduction of limit from USD 200,000 to USD 75,000 August 14, 2013 48. A.P. (DIR Series) Circular No. 32 Liberalized Remittance Scheme - Clarifications ....