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Date : 31 May 2005
Annexure I : Guidelines for release of exchange for travel abroad and for other purpose

ANNEXURE I

Guidelines for release of exchange for travel

abroad and for other purposes

PART A - TRAVEL ABROAD

I.

Travel abroad by Members of Parliament/State Legislatures (except when travelling abroad on account of their private business or for medical treatment), officials of the Central or any State Government (except when travelling at their own expense), members of official or non-official delegations financed out of funds from the Central or any State Government.

Documentation:

Letter (in duplicate) indicating name, address, nationality and passport number of the applicant, along with the letter of sanction in original from (i) the Ministry of Finance (Department of Economic Affairs), Government of India, New Delhi (in case of officials of State Government and Members of Parliament/State Legislatures) or (ii) the Administrative Ministry of Government of India (in case of officials of Central Government).

Quantum of exchange:

Amount sanctioned by Government in its letter of sanction.

NOTE:

Officials of State Government/Union Territory (U.T.), holding ex-officio status in co-operative societies/ public sector undertakings funded by the State/U.T. Governments going abroad in delegation or for participating in exhibitions, workshops, seminars, etc. and also officials going abroad for training under World Bank, etc. aided schemes, will require approval of the Department of Economic Affairs, Ministry of Finance.

II.

Officials in the office of the Comptroller and Auditor General (C&AG) deputed abroad and personnel of the Indian Audit and Accounts Department (IAAD) on their posting abroad.

Documentation:

Letter (in duplicate) indicating name, address, nationality, passport number of the applicant, along with the letter of sanction in original issued by C&AG.

Quantum of exchange:

Amount sanctioned by C&AG in its letter of sanction.

III.

Business visits sponsored by firms/companies/organisations in India, journalists deputed on short-term assignments abroad by newspapers/journals and self-employed professionals like Solicitors, Chartered Accountants, undertaking visits abroad in connection with their profession.

Documentation:

Letter (in duplicate) from the sponsoring firm/company/ organisation [from the applicant in cases of self-employed professionals] indicating name, address, nationality, passport number of the traveller, duration and nature of visit to each country, exchange required and certifying that the expenses are being borne by them. In case exchange is to be released at special scale, a declaration from the sponsoring firm/company/organisation that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at special scale.

Quantum of exchange:

(i)

(a)

Special scale

For Chief/Senior Executives like Chairman, Managing/ Executive Director, etc.

Up to U.S.$ 500 per day for a period not exceeding 45 days

(b)

General scale

For others

up to U.S.$ 350 per day for a period not exceeding 45 days

(ii)

Entertainment Allowance


(a)

Chief Executives of Export/Trading/Star Trading Houses/Super Star Trading Houses - not exceeding U.S.$ 5000 per trip and;

(b)

Officials of other firms/companies etc.- not exceeding U.S. $ 2000/-.

NOTE:

A.

If the amount of exchange asked for does not exceed U.S.$5000 (inclusive of entertainment/secretarial etc. expenses), it may be released regardless of the duration of the visit and the per diem rate of exchange.


B.

See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.


C.

Exchange may also be released to foreign nationals if the visit is sponsored by the company/firm/organisation in India where they are employed on regular basis.

IV.

Travel abroad by members of delegations sponsored by Trade Bodies like Chambers of Commerce, ASSOCHAM, FICCI, FIEO, etc.

Documentation:

Letter (in duplicate) from the sponsoring firm/company/ organisation indicating name, address, nationality, passport number of the traveller, purpose and duration of visit to each country, exchange required and certifying that the expenses are being borne by the sponsoring firm, company, etc. In case exchange is to be released at special scale, a declaration from the sponsoring firm/company/organisation that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at special scale.

Quantum of exchange:

(i)

(a)

Special scale

For Chief/Senior Executives

up to U.S.$ 500 per day for a period not exceeding 45 days

(b)

General scale

For others

up to U.S.$ 350 per day for a period not exceeding 45 days

(ii)

Entertainment Allowance:

Not exceeding U.S.$ 5000 to the leader of the delegation.

NOTE:

A.

If the amount of exchange asked for does not exceed U.S.$ 5000 per member, it may be released regardless of the duration of the visit and the per diem rate of exchange

B.

See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.

V.

Travel abroad for business purposes by officials of public and private sector banks, branches of foreign banks in India, State and Urban Co-operative banks which are authorised dealers and other financial institutions like IDBI, UTI, NABARD, NHB, Exim Bank, ICICI, etc.

Documentation:

Letter (in duplicate) by the sponsoring bank/institution indicating name, address, nationality, passport number of the official, purpose and duration of visit to each country, exchange required and certifying that the expenses are being borne by the organisation. In case exchange is to be released at Special scale, a declaration from the sponsoring bank/institution that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at special scale. Approval of the Ministry of Finance, Government of India should be obtained and certified copy thereof should be attached to the application, only if the visit abroad of the Chief Executive Officers of public sector banks/financial institutions exceeds the number of days indicated in Ministry of Finance (Banking Division), Government of India notification F.No.18/1/97-BOI dated 11th December 1997 (Annexure IA).

Quantum of exchange:

(a)

Special scale

For Chief/Senior Executives like Chairman, Managing/ Executive Director, etc.

up to U.S. $ 500 per day for a period not exceeding 45 days

(b)

General scale

For others

up to U.S.$ 350 per day for a period not exceeding 45 days

(c)

Entertainment allowance

(i) Chairman/Managing/Executive Director

Not exceeding U.S.$ 5000/-

(ii) Other officials

Not exceeding U.S.$ 2000/-


Note:

See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.


VI.

Participation in international conferences/seminars of scientific, technical or educational nature.

Documentation:

Letter (in duplicate) from the sponsoring institution (from the applicant in cases of self-employed professionals) indicating name, address, nationality and passport number of the participant, duration of visit to each country, exchange required and certifying that the expenses are being borne by the organisation. The brochure giving full particulars of the Conference/Seminar shall also be submitted along with the application. In case exchange is to be released at special scale, a declaration from the sponsoring institution that the traveller is a Chief/Senior Executive in the organisation (indicating his designation) and confirming that he is entitled to draw exchange at Special scale.

Quantum of exchange:

(i)

Registration fee as per brochure.

(ii)

Up to U.S.$ 500 per day in case the traveller is Chief/Senior Executive like Chairman, Managing / Executive Director, etc. or up to U.S.$ 350 per day in other cases, for the duration of the conference/ seminar, plus two days. If the registration fee includes boarding and lodging expenses, U.S.$ 500 only may be released towards incidental expenses.

NOTES:

A.

If the amount of exchange asked for does not exceed U.S.$ 5000, it may be released regardless of the duration of the visit and the per diem rate of exchange.

B.

If participation in the conference/ seminar is proposed to be combined with a business visit, exchange shall be released only for the actual number of days of conference/seminar.

C.

See paragraph 8A.1(ii) for release of exchange in excess of the scales prescribed at (ii) above.

VII.

Specialised training/study tour sponsored by institutions or undertaken by professionals like Doctors

Documentation:

Letter (in duplicate) from the sponsoring organisation (from the applicant in cases of self-employed professionals) indicating the name, address, nationality, passport number of the traveller, the details of training/study tour, country to be visited and exchange required along with a letter from the overseas institution/s agreeing to provide necessary facilities for the training/study tour.

Quantum of exchange:

(a)

Course fee (applicable to training only)

Up to U.S.$ 5000 per person on production of documentary evidence.

(b)

Maintenance expenses

U.S.$ 300 per day for a period not exceeding 30 days.

NOTES:

A.

If the amount of exchange asked for does not exceed U.S.$ 5000, it may be released regardless of the duration of the visit and the per diem rate of exchange.

B.

If the course fee is inclusive of maintenance expenses, U.S.$ 50 per day (for incidental expenses) may be released for the actual period of training/study tour.

C.

See paragraph 8A.1(ii) for release of exchange in excess of the scales prescribed at (b) above.

VIII.

Business visits against foreign hospitality.

Documentation:

Letter (in duplicate) from the applicant indicating name, address, nationality and passport number of the traveller, country of visit, period of stay, name and address of the host, purpose of visit, etc. and documentary evidence in support of full hospitality.

Quantum of exchange:

Up to U.S.$ 500/- if the visit is for a period not exceeding 10 days. If the period of visit exceeds 10 days, U.S.$ 50 per day up to a maximum period of 45 days.

Note:

See paragraph 8A.1(ii) for release of exchange in excess of the scales prescribed above.

IX.

Employment abroad

Documentation:

Letter (in duplicate) indicating name, address, nationality and passport number of the applicant together with the letter of appointment from the overseas organisation in original (with a copy).

Quantum of exchange:

Up to U.S.$ 2,500 per person.

X.

Emigration

Documentation:

Letter (in duplicate) indicating name, address, nationality and passport number of the applicant, country of emigration and enclosing documentary evidence in support of emigration.

Quantum of exchange:

Up to U.S.$ 3,000/- per person/per member of family or the amount required by the country of emigration subject to production of documentary evidence in support thereof from the Mission in India of the concerned country.

XI.

Medical Treatment

Documentation:

Form TRM 1

Quantum of exchange:

(a)

For patient

(i)

Hospitalisation

Not exceeding the estimate given by the overseas doctor/hospital.

(ii)

Pre/Post hospitalisation

The period recommended in form TRM 1 subject to a maximum of 2 months @ U.S.$ 150 per day.

(b)

For attendant

@ U.S.$ 150 per day for the period of stay of the patient.

Special conditions:

Exchange shall be released subject to the condition that documentary evidence in support of the expenditure incurred on hospitalisation is submitted to the authorised dealer promptly on return to India. Authorised dealer should verify it and thereafter preserve it for audit/inspection.

NOTE:

A.

In the case of persons who have fallen ill after proceeding abroad for business etc. visits and who are in need of additional exchange, authorised dealers may release additional exchange for medical treatment on getting a certificate in form TRM 2 signed by the attending doctor/hospital abroad subject to submission of bills/vouchers in support of expenditure incurred on medical treatment on return of the person concerned to India.

B.

See paragraph 8A.1(ii) for release of exchange 3in excess of the scales prescribed at (a)(ii) and (b) above and/or for longer duration.

XII.

Medical check-up/consultation abroad

Documentation:

Letter (in duplicate) giving the necessary details.

Quantum of exchange:

i)

For check up/consultations

- Up to U.S.$ 1,000

ii)

Pre/post consultation/check up

a)

U.S. $ 150 per day to the patient for a period not exceeding seven days.

b)

U.S. 150 per day to the attendant for the period up to which exchange is released to the patient provided a certificate from the attending doctor in India is produced to indicate the need for attendant to accompany the patient.

Note:

See paragraph 8A.1(ii) for release of exchange in excess of the above referred per diem scales.

XIII.

Apprenticeship training under a foreign collaboration agreement etc. of persons employed in a manufacturing concern.

Documentation:

Letter (in duplicate) from the sponsoring organisation indicating the name, address, nationality, passport number of the trainee, the details of training and exchange required along with a letter from the overseas organisation indicating the facilities for the training.

Quantum of Exchange:

Up to U.S.$ 2000 per month up to 3 months.

Note:

See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.

XIV.

Training abroad where the entire cost of training is borne by the overseas organisation/institution.

Documentation:

Letter (in duplicate) from the sponsoring organisation indicating name, address, nationality and passport number of trainee, amount of exchange required, name and address of overseas organisation/institution, nature, period and country of training, supported by documentary evidence giving details of facilities offered for the training and stating that the entire expenses of lodging, boarding, etc. will be met by the overseas organisation/institution.

Quantum of exchange:

Up to U.S.$ 500 if the period of training does not exceed 10 days. If the period of training exceeds 10 days, U.S.$ 50 per day up to a maximum period of 30 days.

Note:

See paragraph 8A.1(ii) for release of exchange in excess of the prescribed scales and/or for longer duration.

XV.

Basic Travel Quota (BTQ)

Eligibility

Resident Indian citizens are eligible under the scheme of Basic Travel Quota to avail of foreign exchange up to U.S.$ 3,000 or its equivalent for undertaking one or more private visits to any country abroad (except Nepal and Bhutan) in any calendar year. Foreign nationals permanently resident in India are also eligible to avail of this quota provided they are not availing of facilities for remittance of their salary, savings etc. abroad (cf. paragraphs 11D.2 and 11D.3 of ECM).

Documentation

Letter (in duplicate) giving particulars such as name, address, nationality, country/ies of visit, number and date and place of issue of passport of the traveller alongwith the passport and containing declaration that the exchange applied for together with the exchange already availed of, if any, under the Basic Travel Quota during the calendar year does not exceed U.S.$ 3,000 or its equivalent. 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, savings, etc. abroad in terms of the existing Exchange Control regulations.

Quantum of exchange:

Up to U.S.$ 3000 per person per calendar year.

Special Conditions:

(i)

Passport of the traveller should be verified by the authorised dealer to ensure his eligibility for release of exchange under BTQ.

(ii)

Passport of the traveller should be endorsed with the amount of exchange sold and notation 'Basic Travel Quota' under proper authentication with stamp and date. A photocopy each of the relevant pages of the traveler's passport where personal particulars are available for example, name, address, date of birth, signature, photograph and number, date, place of issue and validity period of passport, visa for country of visit and the pages where endorsement for BTQ has been made.

(iii)

In the event of cancellation of the journey and surrender of exchange to the authorised dealer, the endorsement on the passport relating to the exchange sold may be cancelled by the authorised dealer under his stamp and signature with date.

Travel to Neighbouring countries namely Pakistan, Bangladesh and Myanmar by land route

Authorised dealers may release exchange to travellers proceeding to Pakistan, Bangladesh

or Myanmar by land route up to the amount asked for but within the eligible limit of U.S.$ 3000 per person provided the traveller is eligible for release of exchange under BTQ. The journey ticket need not be insisted upon. All other conditions regarding application, verification of passport for eligibility, limit for sale of foreign currency, endorsement on traveller's passport for sale of foreign exchange under BTQ, etc. remain unchanged.

XVI.

Studies Abroad

Application:

Form TRS.

Eligibility :

Following categories of students are eligible for release of exchange for studies abroad provided they have secured admission to an overseas university/college/educational institution or an articleship from a firm of Chartered Accountants in U.K.

(i) Students holding Indian passports.

(ii) Students holding foreign passports dependent on their parents resident in India.

NOTES:

A.

Exchange facilities may be made available to eligible students who had gone abroad without availing exchange facilities from India for the remaining duration of the course.

B.

Exchange may also be released to students for continuing the same course for which exchange was released earlier or for any other course at the same or any other educational institution.

C.

It is not necessary that full exchange entitlement for the entire year or duration of the course is drawn from the same authorised dealer. Students are free to draw part of their foreign exchange entitlement from one authorised dealer and part from another .

D.

Deposit towards advance tuition fees/maintenance may be remitted if insisted upon by the overseas institution. Authorised dealer should obtain an undertaking from the student that in the event of his/her not joining the course he would obtain the admissible refund and repatriate it to India.

Duration of Course :

The actual duration of the course.

Quantum of exchange :

(a) U.S.$ 30,000 per annum towards tuition fees, maintenance expenses, books etc. Exchange in excess of U.S.$ 30,000 (at actuals) may be released to the extent of the requirement of exchange indicated in the letter from the overseas institution. If the student is in receipt of scholarship, the amount thereof may be adjusted against the amount of exchange admissible to him, only to the extent desired by the applicant.

(b) In cases where the student is in receipt of full sponsorship from a close relative, he will be eligible for full exchange, if he desires not to avail of the relative's hospitality.

(c) In case letter of admission from overseas university does not indicate the estimate of exchange requirements, exchange up to U.S.$ 15,000 may be released subject to adjustment while releasing further exchange.

(d) Exchange may be released for a period not exceeding one year at a time.

(e) Exchange may be released in the form of currency notes not exceeding U.S.$ 500 and balance amount may be released in the form of travellers' cheques/draft/T.T. in favour of the student or the educational institution, as desired by the applicant. Students going to Russia or other Republics of CIS countries may be released exchange in the form of currency notes for a period up to one year.

Maintenance of Records, Files, etc.:

Authorised dealers should preserve the case papers duly indexed in student-wise files/folders for the purpose of internal audit/inspection.

PART B - OTHER PURPOSES

I.

Consular fees

Remittance of visa fees and other consular collections of foreign diplomatic missions in India

Documentation:

Form A2

Special Conditions:

A certificate as under should be appended on form A2 by the remitting mission.

'We hereby certify that the remittance represents visa fees/other consular collections made by us and the amount so far remitted during the current year is Rs....... The remittance during the previous year viz...... aggregated Rs.......'

NOTE:

If there is a significant increase in the amount to be remitted as compared to the previous year, a report should be submitted to Reserve Bank by the authorised dealer after ascertaining the reasons for the increase.

II A.

Casual (Gift) Remittances

Gift remittance to persons residing abroad

Documentation:

Form A2 and a declaration as under:

'I hereby declare that including the remittance of (currency and amount) ……. now applied for, I have not remitted to (Name of the beneficiary) ……….aggregate amount exceeding the prescribed limit of US $ 1,000 in the calendar year ……'

Signature....................................................

Name of the applicant…………………………...........

Address: …………………………………………..........

Place …………

Date ………….

Quantum of exchange:

Upto U.S.$ 1,000 per calendar year per person/corporate for each beneficiary.

B.

Maintenance Expenses Abroad

Maintenance expenses to close relatives namely son / daughter / father / mother / brother / sister / grand father / grand mother permanently residing abroad.

Documentation

:

Form REM and form A2.

Quantum of exchange

:

Up to U.S.$ 5000 per calendar year per beneficiary by a family unit

III.A.

Royalty on Books

Royalty by Indian publishers on Reprint of foreign books and other copyright literature other than those which are on the proscribed/banned list for imports.

Documentation:

Form BRT and form A2

Quantum of exchange:

15% of Indian published price

Special conditions:

(i)

Copy of Reprint Agreement concluded should be obtained

(ii)

Amount of remittance should be net of Income-tax. In case gross amount of royalty exceeds U.S.$ 5,000/-, certificate from a Chartered Accountant on form BRT should be obtained.

(iii)

Advance remittance towards royalty may be allowed up to U.S.$ 3,000/- if provided for in the agreement subject to adjustment against actual royalty accruals.

III.B

Royalty on Reproduction of Audio Software

Royalty by Indian music company for reproduction of copyright music recorded by overseas company (other than those on the prescribed/banned list for imports).

Documentation:

i)

Form MRR and Form A2

ii)

Certified copy of Agreement

iii)

Undertaking from the remitter regarding payment of Income-tax with a certificate from the Accountant in the prescribed form. (cf.paragraph 3 B.10)

iv)

If the royalty exceeds 20% and remittance is not being made from funds held in EEFC account, the applicant may be advised to obtain specific approval from the Department of Electronics, Government of India, New Delhi.


Special Conditions:

(1)

Copy of Agreement for reproduction of copyright music between Indian music company and overseas music company should be verified.

(2)

The retail sale price of the records/cassettes should be computed by deducting applicable local taxes and packaging charges at the rate not less than 6.5% in case of records and CDs and 10% in case of magnetic tape cassettes from the retail price printed on the records/cassettes.

(3)

Where the rate of royalty exceeds 20%, remittance may be allowed on verification of approval from the Department of Electronics, Government of India, New Delhi. A copy of the approval should be kept on record. This special condition, however, is not applicable if the remittance is being made out of funds held in the EEFC account of the applicant.

(4)

Authorised dealers should keep a systematic record of the remittances allowed alongwith declarations in MRR which should be made available to their Internal Auditors/Reserve Bank of India for inspection.

IV.

Royalty on computer software imports

Payment of royalty by Indian software reproducers to overseas copyright holders for reproduction of computer software.

Documentation:


(i)

Form SRT and form A2

(ii)

Certified copy of agreement

(iii)

Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10).


Quantum of exchange:

(i)

Up to 30 (thirty) per cent of the Indian published price.

(ii)

If there is no Indian price, it may be arrived at by converting the list price in the currency of the country of publication at market rate.

(iii)

If the royalty exceeds 30 per cent, the applicant may be advised to obtain specific approval from the Department of Electronics, Government of India. Remittance may thereafter be allowed in accordance with the terms approved by the Government of India.

Special conditions:

(i)

Authorised dealer should ensure with reference to documentary evidence that the amount of royalty is in conformity with the terms and conditions set out in the agreement.

(ii)

Applicant may be advised to obtain permission from the Department of Electronics, Government of India, wherever necessary.

(iii)

While allowing first remittance towards royalty under the agreement, applicant should be advised that all subsequent remittances should also be made through the same branch of the authorised dealer.

(iv)

Advance remittance of royalty on duplication of software should not be allowed without specific permission of Reserve Bank.

(v)

Form SRT and Form A2 should be sent to Reserve Bank with the R Return.

V.

Other Remittances

Remittances towards cost of services including subscription to newspapers,

magazines, etc. rendered/supplied by overseas parties to individuals, firms, companies or organisations in India for purposes other than for which specific provisions e.g., agency commission on exports, advertisements on overseas TV media, etc. exist elsewhere in this Manual. Authorised dealers may allow reimbursement/remittance against claims received towards subscriptions to foreign magazines, journals, etc. and access fee for Internet related services through Websites based abroad on behalf of ICC holders.

Documentation:

Form A2 and original invoice/bill/debit note, etc. from the overseas company/organisation indicating type/nature and cost of service(s) supplied to the applicant.

Quantum of Exchange:

Upto U.S. $ 25,000.

Special Conditions:


i)

The applicant is a customer of the authorised dealer and the latter is satisfied about the bona fides of the remittance towards services supplied.

ii)

Subscription to (a) magazines, etc. which are on the proscribed/banned list and (b) football pools, sweepstakes or lotteries should not be allowed.

iii)

Remittances towards call back services provided by the overseas communication organisations direct or through their agents in India should be permitted only if the applicant is authorised/licensed by the Department of Telecommunications. This facility should, however, not be allowed to organisations which have been permitted by the Department of Telecommunications to provide only information services on marketing etc. on collect call basis.

iv)

Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.

(v)

In case the applicants are not regular customers of an authorised dealer, remittance of exchange upto U.S.$ 1,000 (U.S. dollar one thousand) per transaction may be allowed provided authorised dealer is satisfied about the bona fide of the applicant/remittance.

(vi)

Authorised dealers may allow remittance towards consultancy fees to overseas agencies engaged in processing/sponsoring of applications of Indians for emigration to the concerned country subject to verification of suitable documentary evidence in support of payment.

VI.

Donations:

Remittance of donations by residents to Charitable/educational/religious/cultural organisations abroad.

Documentation:

Letter in duplicate with documentary evidence such as brochure indicating the name, address and activities of the organisation, the type of services offered etc. and purpose/s for making gifts/donations.

Quantum of Exchange:

Up to U.S.$ 1000 in a calendar year per person.

VI. A.

Donation for Victims of Calamities abroad

Remittance towards donations collected in India for relief to victims of calamities like floods, earthquakes etc. to organisations / institutions abroad affiliated to inter governmental bodies like United Nations without any ceiling.

Documentation

Letter in duplicate with documentary evidence such as brochure indicating the name, address and activities of the Organisation, the type of services offered etc. and purpose/s for making donations.

VII. Electronic Data-base costs

Remittance of actual charges payable towards data-base costs, computer connect/time charges, software charges,hit charges, downloading of information from internet, etc.

Documentation:

a) Form A2

b) Invoice or debit notes from the overseas data-base centres

Special Condition:

Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.

NOTE: A) Foreign banks operating in India and desirous of remitting proportionate expenditure on electronic data base cost incurred by their Head Offices, may make such remittances to the latter, on the basis of a copy of invoice raised by the service provider indicating details of proportionate bifurcation of such charges to be paid by the Indian branches of the bank concerned, provided approval from Department of Banking Operations and Development, Reserve Bank of India, Central Office, Mumbai for the arrangement has been obtained.

B) Remittance upto U.S.$ 250 or its equivalent may be allowed by authorised dealers if the applicant is not in a position to produce documentary evidence such as invoice or debit note from the overseas company provided they are satisfied about bona fides of the applicant/remittance.

VIII.

Claims against Indian Tour Operator/Travel Agent

Documentation

Letter in duplicate from the Indian Tour Operator/Travel Agent indicating total tour cost in respect of which the claim is preferred together with documentary evidence indicating details of receipt of advance payment for individual/group tour and letter from foreign tourist/tour operator seeking the claim and indicating reasons therefor.

Quantum of Exchange

For individual or group tours

Up to 10% of the tour cost or U.S.$ 5,000 whichever is higher.


IX.

Advertisements in Print Media Abroad or on Internet

Remittance of the actual cost of advertisements in print media abroad such as overseas newspapers/periodicals or on Internet by firms/companies/organisations as well as banks/financial institutions in India.

Documentation

(a)

Form A2

(b)

Invoice/bill from the overseas publisher

(c)

Clippings of the advertisements

(d)

Undertaking/certificate regarding payment of income-tax (cf. paragraph 3 B.10)

(e)

In the case of advertisements released by State Government Departments / undertakings approval letter from the Ministry of Finance (Department of Economic Affairs), Government of India, New Delhi should be called for.

Special condition:

Certified copy of the documentary evidence i.e. invoice/bill in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.

NOTE:

Authorised dealers may allow remittance in advance towards cost of advertisement in print media or on Internet, out of EEFC accounts of the advertiser concerned provided the overseas agency insists upon advance remittance and an undertaking has been obtained from the applicant that he would submit documentary evidence in support of publication of advertisement within 3 months from the date of remittance. Authorised dealers should follow up for submission of documentary evidence, with the remitter.

X.

Maintenance/Annual Services Charges for Imported Machinery/Software

Remittance for providing maintenance/support services for imported machinery or softwares, by overseas companies to Indian importers.

Documentation:

(a)

Form A2

(b)

Original invoice from the overseas company indicating the amount of charges, nature of services rendered and description of machinery/equipment/software imported.

(c)

Copy of the relative contract/agreement specifying the terms of payment and providing maintenance/servicing of imported machinery/software.

(d)

Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10).

Special conditions

Authorised dealers should ensure that the machinery/equipment/software has been actually imported into India with reference to appropriate documentary evidence. Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.

XI (A).

Feasibility/Pre-feasibility Studies for Projects in India

Remittance of charges for conducting Feasibility/Pre-feasibility studies, for projects to be set up in India, to overseas consultants/agencies.


Documentation

(a)

Form A2.

(b)

Original invoice from the overseas company indicating the nature of services rendered.

(c)

Certified copy of contract specifying the terms of payment.

(d)

Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10).

(e)

An undertaking from the applicants that they have complied with the provisions of Research and Development Cess Act, 1986, if applicable.

Special Conditions

Authorised dealers should obtain a confirmation from the applicant company that the relative study report has been received by it and certified copy of the documentary evidence in support of remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.

XI(B). Architectural services provided by foreign architects

Remittance of charges for architectural services provided by foreign architects to Indian companies engaged in development of real estate and housing in India subject to the documents and special condition enumerated under item XI(A) above.

Quantum of Exchange

Up to U.S.$ 1,00,000.

XI (C).

Feasibility studies for Projects Abroad

Remittances to overseas consultancy organisations for conducting feasibility/pre-feasibility studies for projects to be set up abroad by Indian companies in respect of their proposed joint venture/wholly owned subsidiary abroad.

Documentation

a)

Form A2

b)

Certified copy of contract specifying the terms of payment.

c)

Invoice from the overseas consultancy organisation indicating the nature of and charges for the feasibility study.

d)

Applicant's Undertaking and Accountant's Certificate regarding payment of income-tax in the prescribed form.

e)

A declaration from the applicant that the assignment for which payment is being made has been completed.


Quantum of Exchange

Upto U.S. $ 100,000.

NOTE

:

For remittance in excess of U.S. $ 100,000, please see instructions contained in paragraph 9 A.7(i)

A.D.(M.A. Series) Circular No.48
A.D.(M.A. Series) Circular No.48 - Slip 5

XII.

Training/Coaching Expenses for Sports Activities

Indian sportspersons undertaking training in sport activities abroad or engagement of overseas coaches/trainers for coaching of sportspersons in India.

Documentation:

(a)

Form A2

(b)

For undertaking training abroad

(i)

Letter (in duplicate) giving particulars such as name, address of the applicant, country, period and nature of training in sport activity proposed to be undertaken.

(ii)

Letter of invitation/offer from the overseas party indicating inter alia, the nature of sport activity and quantum of exchange required.

(c)

For engagement of overseas coaches/trainers

(i)

Original contract/agreement/correspondence with overseas coaches/trainers with two certified copies thereof.

(ii)

Original invoice from the overseas party with two certified copies thereof.

(iii)

Undertaking/certificate regarding payment of Income-tax (cf.paragraph 3 B.10)

Special Condition

Certified copy of the documentary evidence in support of the remittance alongwith form A2 should be forwarded to Reserve Bank with R Returns.

Quantum of exchange:

Actuals as indicated in the letter of invitation/offer.

XIII. Remittance of Prize, Sponsorship Money for Sports

Documentation

  1. Form A2

  2. Letter (in duplicate) from the applicant giving particulars of nature of sport activity, name and address of the overseas party/Indian sponsorer, amount of foreign exchange required.

  3. Letter of offer or Memorandum of Understanding or Agreement entered into for the relevant sport activity and foreign exchange required.

Quantum of Exchange

  1. Upto U.S.$ 100,000 (U.S. dollars one lakh) or its equivalent if the applicant is a recognised International/National/State level sports body.

  2. Upto U.S.$ 25,000, in each case, in respect of cases not covered by (a) above.

Special conditions

Certified copies of the documentary evidence submitted in support of the remittance should be retained by authorised dealers for audit/inspection.

NOTE: Requests for release of foreign exchange in excess of U.S.$ 100,000 or U.S.$ 25,000, as
the case may be, may be referred to Reserve Bank.

XIV.

Fees for ISO Certification

Authorised dealers may allow remittances towards fees payable for ISO certification for products of Indian firms/companies.

Documentation

(i)

Form A2

(ii)

Invoice from the overseas accredited agency indicating details of product(s), fees payable for ISO certification.

Quantum of Exchange:

Actuals as per invoice.

NOTE:

Authorised dealers should, however, ensure that in case the overseas accredited agency in question had engaged the services of Indian firm/company to conduct the survey/inspection, the latter has been/would be paid by the overseas accredited agency in foreign exchange through normal banking channel for the services rendered.

XIVA. Registration of Patents/Trade Marks

Authorised dealers may allow remittances towards registration charges payable to overseas Governments/Regulatory Authorities/International Organisations for registration of Patents/Trade Marks.

Documentation

(i) Form A2

(ii) Invoice/Documents from the overseas registering authorities indicating charges payable for registration or renewal of registration of Patent/Trade Mark.

Quantum of Exchange

Actuals as per invoice/documents.

XV.

Other Sundry Remittances

Authorised dealers may allow the following types of remittances on production of appropriate documentary evidence as indicated against each item.

Type of remittance

Documentary evidence

i)

Remittance by Indian courts the in connection with execution of commission/letters of request.

Court order indicating amount of remittance.

ii)

Remittance of alimony

Court order indicating the amount of alimony.

iii)

Remittance of lease/rental charges for hiring web-space from foreign web servers and E-mail service providers

a)

Invoice from the overseas beneficiary

b)

Applicant's undertaking and Accountant's certificate regarding payment of Income tax in the prescribed from

(iv)

Remittance of sale proceeds of imported cars sold by foreign diplomats/missions of State Trading Corporation of India (STC)

Letter from STC in support of the sale price of the car.

v)

Remittance of sale proceeds of imported cars sold by diplomats/missions in India to another diplomat

a)

Documentary evidence in support of the sale price of the car

b)

Documentary evidence to show that the payment by the purchaser was made out of funds brought from abroad in free foreign exchange or out of remittable funds

vi)

Remittance of net amount of bonus to Indian employees posted abroad by Indian firms/companies

a)

Documentary evidence in support of the remittable amount

b)

Applicant's undertaking and Accountant's certificate regarding payment of income-tax in the prescribed form

vii)

Remittance for import of Prototypes developed abroad

Invoice from the overseas company with a copy of agreement/ correspondence exchanged

Annexure IA

F.No.18/1/97.B.O.I.
Government of India
Ministry of Finance
Department of Economic Affairs
(Banking Division)

Jeevan Deep Building,
Sansad Marg,
New Delhi-110 001,
Dated the 11, December, 1997

To,

1.

Chairman/Managing Directors
State Bank of India,
Central Office, Mumbai.

4.

Managing Director,
Export-Import Bank of India,
Head Office, Mumbai.

2.

Chairman,
Industrial Development Bank of India,
Head Office, Mumbai.

5.

Chairman and Managing Director,
National Housing Bank,
Head Office, New Delhi.

3

Chairman/Managing Director,
National Bank for Agriculture and Rural Development,
Head Office, Mumbai.

6.

Chairman and Managing Director,
Industrial Investment Bank of
India Ltd.,
Head Office, Calcutta.

7.

Chairmen and Managing Directors and
Executive Directors
of 19 Nationalised Banks

Subject:- Foreign visits by the wholetime directors of public
sector banks and financial institutions

Sir,

As per the existing terms and conditions of appointment issued by the Government of India wholetime directors of public sector banks and financial institutions are required to obtain prior permission of the Government for undertaking any visit abroad for official purpose. Such visits are undertaken for reviewing the operations/performance of the banks' overseas branches/offices, attending seminars, conferences, workshops, meetings of World Bank/IMF/ADB and other international bodies, meeting the foreign correspondent banks, overseas clients, promotion of public issue etc. A copy of such requests is to be sent to Reserve Bank of India. On return from such visits they are required to submit a report on the foreign tour to the Central Government and Reserve Bank of India. However, in the event of their personal visit abroad, prior intimation only is required to be sent to the Government.

2. The matter has been reconsidered by the Central Government in the context of granting more autonomy to the public sector banks and financial institutions. It has now been decided that prior approval of the Central Government would not be required for foreign visits for periods (excluding travel time) as indicated below:


Category of post(s)

Banks having more than 10 branches/offices abroad

Banks having 10 or less branches/offices abroad

Banks having no branches/offices abroad


a)

I)

II)

Chairman,

State Bank of India

Chairmen and Managing Directors of nationalized banks

20 days in a calendar year

10 days in a calendar your

7 days in a calendar year


b)

I)

II)

Managing Directors, State Bank of India

Executive Directors of nationalized banks (with the approval of Chairman/CMD)

10 days in a calendar year

5 days in a calendar year

4 days in a calendar year


In the case of the wholesome directors of financial institutions, prior approval of the Central Government would not be required for such foreign visits as indicated below:-


a)

I)

Chairman and Managing Director,
Industrial Development Bank of India

15 days in a calendar year

II)

Chairman,
National Bank for Agriculture and Rural Development

III)

Chairman and Managing Director,
National Housing Bank

IV)

Chairman and Managing Director,
Industrial Investment Bank of India Ltd.

V)

Managing Director,
Export-Import Bank of India


b)

Managing Director,
National Bank for Agriculture and Rural Development (with the approval of Chairman)

8 days in a calendar year


3. The above wholetime directors shall keep their Board of Directors, Central Government and Reserve Bank of India informed of their visits which are within the above prescribed limits. Prior to undertaking the visits during Parliament session, it may be ensured that prior intimation is sent to Government at least 10 days in advance. In cases where it is proposed to undertake any foreign visit in excess of the above prescribed limits, prior permission of the Central Government as hitherto may be obtained. In regard to leave during foreign visits and the wholetime directors being accompanied by their spouses during such visits the existing instructions shall apply.

4. The receipt of this letter may kindly be acknowledged.

Yours faithfully,
Sd/-
(Sudhir Shrivastava)
Director



 
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