TaxTMI 
TaxTMI 
Master Direction - Other Remittance Facilities (Updated as on September 06, 2024)
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....g 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) 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 3.2 Remittance of salary 3.3 Meeting of medical expenses of NRI close relatives by resident individuals 3.4 International Credit cards/International Debit card....
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....erred 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 money/awards, etc. 1.5 Fraudulent offers: There is a spate of fictitious offers of cheap funds in recent times from fraudsters through letters, e-mails, mobile phones, SMS, etc. Communications on fake letterheads of the Reserve Bank and ....
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....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 account transactions (viz. private visit; gift/donation; going abroad on employment; emigration; maintenance of close relatives abroad; business trip; medical treatment abroad; studies abroad) available to resident individuals under Para 1 of Schedule III to Foreign Exchange Management (Current Account Transactions) Amendment Rules, 2015 dated May 26, 2015 are subsumed under the Liberalised Remittance Scheme (LRS) of USD 2,50,000 per Financial Year (FY) with effect from May 26, 2015 [Instructions on LRS are available on Master....
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....e 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 9/2000-RB dated May 3, 2000, as amended from time to time). 3.1.4 Unspent foreign exchange A returning traveller is permitted to retain with him, foreign currency, travellers' cheques and currency notes up to an aggregate amount of USD 2000 and foreign coins without any ceiling beyond 180 days. Foreign exchange so retained, can be utilized by the traveller for his subsequent visit abroad. 3.2 Remittance of salary A person who is resident but not permanently resident in India and a. is a citizen of a foreign State other than Pakistan; or b. is a citizen of India, who is on deputation to the office or branch of a foreign company or subsidiary or joint venture in India of such foreign company, may make remittance up to his net salary (after deduction of taxes, contribution to provident fund and other deductions). Explanation: For the purpose of this item,....
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....d 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, subject to the condition that charges on the use of ICCs should be settled by the concerned NRIs/PIOs only out of inward remittances or balances held in their Non-Resident External (NRE) Accounts/ Foreign Currency Non-Resident (FCNR) Accounts. 3.4.2. International Debit Cards (IDC) * Banks authorised to deal in foreign exchange may issue 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. IDCs can be used only for permissible current account transactions and the limits as mentioned in the Schedules to the Rules, as amended from time to time, are equally applicable to payments made through use of these cards. * The IDCs cannot be used on internet for purchase of prohibited items like lottery tickets, banne....
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....thorised 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 redemption till the completion of the respective settlement cycle; * A small balance not exceeding US$ 100, for meeting any pipeline transactions till the completion of the respective settlement cycle; and * Transaction fees / service tax payable in India in Rupees. * For the amount that are authorized but unclaimed/ not settled by the acquirer, the issuer of such cards can hold such amounts until such transactions are processed/ settled by the acquirers within the prescribed settlement timeframe. 4. Remittance facilities for others: 4.1. Gift/donation General permission is available to persons other than individuals to remit towards donations up-to one per cent of their foreign exchange earnings during the previous 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) pr....
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....o overseas TV media company Authorised dealers may allow cable operators or collection agents in India of overseas TV media companies, to remit subscription collected from subscribers in India/advertisement charges collected from the advertisers who are eligible to advertise on overseas TV channels without any prior permission from the Reserve Bank. 4.7. Bids in foreign currency for projects to be executed in India Persons resident in India are permitted to incur liability in foreign exchange and to make or to receive payments in foreign exchange, in respect of global bids where the Central Government has authorised such projects to be executed in India. In such cases, authorised dealers may sell foreign exchange to the concerned resident Indian company which has been awarded the contract. 4.8. Sale of overseas telephone cards Authorised Dealers may allow agents in India of the overseas organisations issuing pre-paid telephone cards to remit the sale proceeds of such cards, net 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 person....
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....ountries for services rendered by travel agents and hoteliers in these countries. Authorised Dealer may allow such remittances after verifying that the amount being remitted to the neighbouring countries (inclusive of remittances, if any, already made against the tour) does not exceed the amount actually remitted to India and the country of residence of the beneficiary is not Pakistan. 5. Issue of Guarantee - Import of service 5.1. AD Category-I banks are permitted to issue guarantee for amount not exceeding USD 500,000 or its equivalent in favour of a non-resident service provider, on behalf of a resident customer who is a service importer, provided: * The AD Category-I bank is satisfied about the bonafides of the transaction. * The AD Category-I bank ensures submission of documentary evidence for import of services in the normal course. * The guarantee is to secure a direct contractual liability arising out of a contract between a resident and a non-resident. 5.2. In the case of a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments, approval from the Ministry of Finance, Government of India for issue of guarantee for an amo....
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....Know Your Customer (KYC) Direction, 2016' as updated from time to time, issued by Department of Regulation, 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 the Reserve Bank, the Central Government having considered it necessary in the public interest, makes the following rules, namely:-- 1. Short title and commencement.---(1) These rules may be called the Foreign Exchange Management (Current Account Transactions) Rules, 2000; (2) They shall come into effect on the 1st day of June 2000. 2. Definitions---In the....
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....son 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 is applicable. 6. Payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco. 7. Payment related to "Call Back Services" of telephones. 8. Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme. Schedule II Transactions which require prior approval of the Central Government (see Rule 4) Purpose of Remittance Ministry/Department of Govt. of India whose approval is required 1. Cultural Tours Ministry of Human Resources Development, (Department of Education and ....
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....hat 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 Remittance Scheme) if it is so required by a country of emigration, medical institute offering treatment or the university, respectively: Provided further that if an individual remits any amount under the said Liberalised Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 (US Dollars Two Hundred and Fifty Thousand Only) by the amount so remitted: provided also that for a person who is resident but not permanently resident in India and - * is a citizen of a foreign State other than Pakistan; or * is a citizen of India, who is on deputation to the office or branch of a foreign company or subsidiary or joint venture in India of such foreign company, may make remittance up to his net salary (after deduction of taxes, contribution to provident fund and other deductions). Exp....
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....change Management Act (FEMA), 1999 June 1, 2000 2. A.P.(DIR Series) Circular No.19 Foreign Exchange Management Act , 1999 - Foreign Travel October 30, 2000 3. A.P.(DIR Series) Circular No.20 Foreign Exchange Management Act , 1999 Foreign Travel November 16, 2000 4. A.P.(DIR Series) Circular No.11 Release of Foreign Exchange for visits abroad - Currency Component November 13, 2001 5. A.P.(DIR Series) Circular No.53 Use of Credit Cards June 27, 2002 6. A.P. (DIR Series) Circular No.37 Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals November 1, 2002 7. A.P.(DIR Series) Circular No.51 Increase in release of foreign exchange for private visits abroad November 18, 2002 8. A.P. (DIR Series) Circular No.53 Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals November 23, 2002 9. A.P. (DIR Series) Circular No.54 Remittance of Foreign Exchange for Miscellaneous purposes November 25, 2002 10. A.P. (DIR Series) Circular No.64 Resident Foreign Currency (Domestic) Account - Facility for Resident Individuals December 24, 2002 11. A.P. (DIR Series) Circular No.65 Foreign Exchange Management....
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....Foreign Exchange Management Act (FEMA), 1999 - Current Account Transactions - Liberalisation November 28, 2006 29. A.P. (DIR Series) Circular No. 24 Liberalised Remittance Scheme of USD 50,000 for Resident Individuals December 20, 2006 30. A.P. (DIR Series) Circular No. 38 Foreign Exchange Management Act (FEMA), 1999 Current Account Transaction Rules - Amendment April 5, 2007 31. A.P. (DIR Series) Circular No. 58 Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2000 May 18, 2007 32. A.P. (DIR Series) Circular No. 9 Liberalised Remittance Scheme for Resident Individuals- Enhancement of limit from USD 100,000 to USD 200,000 September 26, 2007 33. A.P. (DIR Series) Circular No. 36 Liberalised Remittance Scheme for Resident Individuals - Reporting April 4, 2008 34. Foreign Exchange Management (Current Account Transactions) Rules, 2000 Foreign Exchange Management (Current Account Transactions) Rules,2000 May 3, 2000 35. A.P. (DIR Series) Circular No.15 Foreign Exchange Management Act, 1999 - Advance Remittances for Import of Services September 8, 2008 36. A.P. (DIR Series) Circular No.40 A.P. (F. ....