The RBI has doubled the limits for individuals and other entities for making foreign currency remittances under current and capital account transactions to $2,50,000 a year.

In a circular, the RBI said that permissible capital account transactions for individuals include opening of foreign currency account abroad with a bank, purchase of property abroad, making investments abroad, setting up wholly-owned subsidiaries and joint ventures abroad, besides extending loans, including rupee loans, to NRI relatives.

Current account transactions are those whose maximum tenor is one year while capital account transactions are those whose minimum tenor is greater than one year. Individuals who have already remitted any sum abroad will now have extra limits to remit, RBI said. All the facilities including private/business visits for release of exchange/remittances for current account transactions (including gifts in rupees) available to individuals would now be subsumed under the overall limit of $2,50,000.

However, individuals with foreign exchange expenses with regard to emigration, medical treatment abroad and studies abroad may avail of exchange facility for an amount in excess of the overall limit prescribed under the liberalised remittance scheme if it is so required by a country of emigration, medical institute offering treatment or the university, respectively.

Persons other than individuals have been allowed to donate to educational institutions and pay commissions to agents abroad for sale of residential flats/commercial plots in India within the $2,50,000 limit.

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