Financial Daily from THE HINDU group of publications
Friday, Jul 18, 2003
Financial Daily from THE HINDU group of publications Friday, Jul 18, 2003 |
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Money & Banking
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Forex Current account transactions eased further — Forex limit for education, medical treatment hiked Our Bureau
Mumbai , July 17 THE Reserve Bank of India on Thursday announced a substantial hike in the present limits of foreign exchange available for various purposes including education abroad, medical treatment for overseas employment. The limit for foreign exchange for education overseas has been increased from $30,000 to $100,0000 per annum and for medical treatment from $50,000 to $100,000. Authorised dealers can now allow remittances for employment abroad to $100,000, from $5,000 now and for emigration purposes from $5,000 to $100,000. Similarly, up to $100,000 can be released for maintenance of close relatives abroad as against the present limit of $5,000. ``The foreign exchange can be sanctioned without insisting on any supporting documents but on the basis of self-declaration incorporating the basic details of the transaction and submission the relevant applications,'' said the RBI in a circular issued on Thursday. Authorised dealers should ensure that payment for purchase of foreign exchange is made by the applicant by means of cheque/demand draft/by debit to his/her account. Further, it has also been decided to raise the limit for remittance towards consultancy services procured from outside India to $1 million per project, as against the present limit of $100,000. Necessary amendments to the Foreign Exchange Management (Current Account Transactions) Rules, 2000 are being notified separately, said the circular. The measures are another step towards foreign exchange liberalisation and convertibility of rupee in the current account. ``These announcements, display the tremendous confidence that the central bank has that there will be no flight of capital. There is also no fear that the reserves will be frittered away,'' said the treasury head of a private bank commenting on the latest slew of liberalisations.
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