RBI Rules & Regulations Foreign Exchange Services Purpose of Remittance Eligibility Resident Indian Nationals.

ls. Foreign Nationals permanently resident in India are also eligible to avail of this quota provided the applicant is not availing of facilities for remittance of his salary, savings etc. abroad in terms of the existing FEMA regulations. Foreign born wife of Indian nationals. Children endorsed on parents passport are also eligible for full entitlement. Quantum of Exchange Up to a total of US$ 10000 or its equivalent per resident individual on a financial year basis. Out of which maximum of USD 3000 or its equivalent in Currency notes per visit and rest in Travelers Cheques for all the countries except for travel to Iraq, Libya, Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States. Individual traveling to countries like Nepal & Bhutan are not eligible to withdraw foreign exchange under this scheme. For Travelers proceeding to Iraq or Libya exchange in the form of currency notes may be sold up to limit not exceeding USD 5000 or its equivalent per resident individual on a financial year basis. For Travelers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States entire exchange can be released in the form of currency notes. Foreign exchange quota for personal visit can be availed over & above the specified amount under all other schemes for release of foreign exchange. Documentation Request cum FEMA Declaration form for release of exchange under personal visit scheme Form A2 or Simplified Application cum Declaration up to USD 5000 equivalent Original passport for pages showing name, address, valid visa & passport number and validity should be verified by the Counter Staff & details to be noted on the request form Confirmed ticket-showing travel within 60 days of taking foreign exchange should be verified & details of the ticket number should be noted on the request form by Counter Staff. Request form should have the undertaking from the Counter Staff that all originals including the passport & he/she has dully verified the ticket. Photocopies need to be kept. Photocopy of the crossed account payee cheque /draft or pay order along with debit advice. If the applicant is a foreign national permanently resident in India, he/she should give an undertaking on the application itself that he/she is permanently resident in India and is not availing of facilities for remittance of his/her salary. Saving etc. abroad in terms of existing FEMA Regulations.

Personal / Private / Leisure Visits

Exceptions to be noted by Counter Staff: Visa may not be insisted upon in cases where travel is to a country-offering visa on arrival. However, undertaking for the same may be obtained For Airline staff open ticket may be accepted. Proof of Airline staff may be kept in record. Executives sponsored by Up to USD 25000 per business trip Request cum FEMA Declaration form firms/companies/organizat irrespective of period of stay for release of exchange under ions in India. business visit scheme on companys Release of exchange beyond USD letterhead, duly signed by Authorized Participation in 25000 for a single business visit Sales to official of the company. international conferences requires prior approval of RBI. Business Visit /seminars which are of a Exchange may also released to A - 2 form (Only for the amounts scientific, technical or exceeding USD 5000 equivalent.) foreign nationals if the visit is educational nature. sponsored by the Incase of Travel for a conference / Specialized training /study company/firm/organization in India seminars the brochure giving full tour sponsored by where they are employed on particulars of the institutions or undertaken regular basis. Conference/seminar shall also be by professionals Like If a passenger plans to club both submitted along with the application. Doctors. Conference and business visit In case of Travel related to Training / together the entitlement remains Study tours the details of training only up to a maximum of USD /study tour along with a letter from 25000. the overseas institutions agreeing to provide necessary facilities for the Personal Visit entitlement can be training /study tour, and certifying availed over and above the that the expenses are being borne by specified amount under this the organization. scheme All the above documents to be kept on record along with Copy of Cash Memo. USD 100,000 Employment abroad Resident Indians Employment Visa / Work Permit and letter from the overseas employer Request cum FEMA Declaration form for release of exchange by filling the relevant portion as per the type of remittance. Photocopy of the passport having valid visa in case the remittance is for employment, education abroad, and medical treatment and for permanent emigration.

A - 2 form (Only for the amounts exceeding USD 5000 equivalent.) For application fees in case of foreign education or processing fees for immigration, valid visa is not required. Request cum FEMA Declaration form for release of exchange by filling the relevant portion as per the type of remittance. Photocopy of the passport having valid visa in case the remittance is for employment, education abroad, and medical treatment and for permanent emigration. A - 2 form (Only for the amounts exceeding USD 5000 equivalent.) For application fees in case of foreign education or processing fees for immigration, valid visa is not required. Request cum FEMA Declaration form for release of exchange by filling the relevant portion as per the type of remittance. Photocopy of the passport having valid visa in case the remittance is for employment, education abroad, and medical treatment and for permanent emigration. A - 2 form (Only for the amounts exceeding USD 5000 equivalent.) For application fees in case of foreign education or processing fees for immigration, valid visa is not required.

Maintenance of Close relative abroad (by resident Indian)

USD 100,000 (per year, per recipient)

Resident Indians can remit to their close relative who are Non resident and require funds abroad for their maintenance.

Maintenance of Close relative abroad (By resident but not permanently resident in India)

Not exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions)

By 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 or subsidiary or joint venture in India of such foreign company

USD 100,000 Education abroad ( Academic year) FES: Agreed

Resident Indian Confirmed admission in overseas college/university/educational institution. Student holding Indian passports who had earlier gone abroad for pursuing studies without availing of exchange, can avail foreign exchange for the balance period of the course Students holding foreign passports dependent on their parents resident in India

Request cum FEMA Declaration form for release of exchange by filling the relevant portion as per the type of remittance. Photocopy of the passport having valid visa in case the remittance is for employment, education abroad, and medical treatment and for permanent emigration. A - 2 form (Only for the amounts exceeding USD 5000 equivalent.) For application fees in case of foreign education or processing fees for immigration, valid visa is not required. Request cum FEMA Declaration form for release of exchange by filling the relevant portion as per the type of remittance. Photocopy of the passport having valid visa in case the remittance is for employment, education abroad, and medical treatment and for permanent emigration. A - 2 form (Only for the amounts exceeding USD 5000 equivalent.) For application fees in case of foreign education or processing fees for immigration, valid visa is not required.

Medical treatment abroad Resident Indian proceeding for permanent emigration abroad (needs to be confirmed)

USD 100,000

Resident Indian Must be suffering from an ailment requiring specialized treatment abroad. Resident Indian fallen sick after proceeding abroad Going abroad for Medical Check Up.

Medical treatment abroad for Resident Indian

Emigration

Exceeding USD 100000 on submission to AD of an estimate from the Doctor in India or hospital/ doctor abroad. USD 100,000 or amount prescribed by country of Emigration (lower of the two)

Resident Indian Proceeding for permanent emigration abroad

Request cum FEMA Declaration form for release of exchange by filling the relevant portion as per the type of remittance. Photocopy of the passport having valid visa in case the remittance is for employment, education abroad, and medical treatment and for permanent emigration. A - 2 form (Only for the amounts exceeding USD 5000 equivalent.) For application fees in case of foreign education or processing fees for immigration, valid visa is not required.

All Resident Individuals including Minors are eligible to avail the facility under the scheme. The facility will not be available to corporate, partnership firms, HUF, Trusts, etc.

Remittance under Liberalized Remittance Scheme

USD 200,000 The facility will be per financial year basis (April-March). Limit of USD 200,000 under the Scheme would also include remittances towards Gift and donation by a resident individual. Purpose This facility is available for making remittance up to USD 200,000 per financial year basis (April-March) for any current or capital account transactions or a combination of both. Under this facility, resident individuals will be free to acquire and hold immovable property or

Requirements to be complied with the remitter (Customer) Request cum FEMA Declaration form for release of exchange The remitter individual will have to designate our branch through which all the remittances under the scheme will be made. Application cum declaration duly filled in all respect and signed by the applicant is to be taken. Requirements to be complied by Branch Counter (Counter Staff) To Comply with KYC & AML Guidelines while allowing the facility If the applicant is an existing account

shares, units of Mutual Funds or any other asset outside India and will also able to open and maintain and hold foreign currency accounts with a bank outside India for making remittances under the scheme. The foreign currency account may be used for putting through all transactions connected with or arising from remittances eligible under this scheme. Gift. Donation Purchase of objects of Art. Remittance of funds for acquisition of ESOPS.

holder, he should have maintained the account for a period of one year. If the applicant is a new customer, Counter Staff must take respective confirmation from the respective branch that they have carried out due diligence on the opening, operations & maintenance of the account Obtain the bank statements from the applicant for to check the source of funds. If unavailable, please ask for latest Income Tax Statement Order/ Return filed by the applicant / PAN In case the applicant doesnt have account with us, in that case the payment to be taken in the form of Cheque drawn on applicants accounts/ debit to his account or by Demand Draft/ Pay Order. The remitting office (CPU) must certify that remittance is not being made directly or indirectly to ineligible entities and follow RBI guidelines.

Exceptions to be noted by Counter Staff Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery/sweep stakes, tickets proscribed magazines etc) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000. Remittance made directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan. Remittances made directly or indirectly to countries identified by the Financial Action Task Force (FATF) as non co-operative countries and territories (as available on FATF website) viz Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines and Ukraine. Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as notified separately by the Reserve Bank to the Banks. FES: Agreed Transactions in the nature of remittance for margins or margin calls to overseas exchanges/overseas counterparty are not allowed under the Scheme. It is clarified that the banks should not allow any kind of credit facilities to resident individuals to facilitate remittances under the Scheme.

Traveler traveling abroad on personal/Leisure visit or Remittances business visit can remit up to a for Tour reasonable limit towards his Arrangements hotel accommodation, tour (At the arrangements, etc., in the request of the countries proposed to be visited traveler) by him, provided it is out of foreign exchange purchased by the traveler from us (including exchange drawn for private travel abroad)

Quantum of Exchange is not specified in the RBI Circulars

Letter from the Client duly signed by their authorized signatories clearly indicating the following details/particulars : Request for the remittance with the currency, amount and date of remittance. [In case of difference in amount between underlying document/s against the actual remittance amount, such adjustments should be explicitly stated along with the reason and final net amount to be remitted should be specified] Purpose of Remittance Debit authority authorizing the bank to debit their INR/EEFC account with us towards the amount of remittance and our charges / commission and Beneficiary & Bank details for remittance. Form A2 Dully filled in and signed by authorized signatories FEMA Declaration format duly signed by authorized signatories Agents Declaration from the client to the effect that the remittance is being made out of the foreign exchange purchased by the concerned traveler from an authorized person (including exchange drawn for private travel abroad) in accordance with the

Agents in India, having a good track record and satisfying all KYC norms, and have tie up Remittances arrangements with for Tour hotels/agents, etc., abroad for Arrangements providing hotel accommodation (At the or making other tour request of the arrangements for travelers from

Amount as per the invoice of the overseas hotels/agent within the prescribed limits of personal / business visit Forex quota as mentioned above.

Agent)

India, provided the remittance is made out of foreign exchange purchased by the concerned traveler from us or from an authorized person (including exchange drawn for private travel abroad)

Rules, Regulations and Directions in force. That he (agents) has received the undertaking from the travelers in addition to the normal required conditions applicable for release of foreign exchange that the traveler has/will purchase the foreign exchange from the Authorized person only and within the prescribed limits (including the amount now being remitted abroad as advance payment) in accordance with the Rules, Regulation and Direction in force. That he will take care and follow up that the tour/services for which the advance is being/has been remitted should be executed and ensure that the beneficiary of advance remittance has fulfilled his obligation under the Contract/agreement/tie-up and will inform the Bank with in reasonable time from the completion of the Tour and undertake to repatriate the unspent advance remittance, if any. AD-II dealer shall submit an application form with details and also confirming customers KYC compliance for affecting the remittance. Covering letter from the AD II providing the complete applicant / remitter and beneficiary details & also certifying the KYC norms are

Remittances for Restricted Authorized Dealers (Are they Category II AD s?)

As mentioned Above Private Visits Remittance by tour operators / travel agents etc. Business travel Fee for participation in global conferences Film shooting Remittance for participation in international events /

competitions Medical Treatment abroad Disbursement of Crew wages Overseas Education Remittance under educational tie up arrangements with universities Remittance towards exam fees for exams held in India / abroad and for additional score sheets for GRE, TOEFL, etc. Employment and processing, assessment fees for intending migrants Emigration Visa fees.

complied with. FEMA Declaration duly signed by the AD II. Completed A2 form if applicable ( for cases over USD 5000) Payment needs to be collected by way of draft /cheque from the debit of the AD II account. (In case of cheque remittance need to be effected after cheque realization). AD-II customer to submit 5 % of the transaction documents to the bank on a random basis for audit purpose.

RBI Master Circulars Master Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals Master Circular No.04/2009-10 RBI/2009-2010/24

Master Circular on Miscellaneous Remittances from India Facilities for Residents Master Circular No.05 /2009-10 RBI/ 2009-10/25 Circular on USD 3000 Limit in BTQ