| RBI/2006-07/216
A.P. (DIR Series) Circular No.24 December
20, 2006 To
All
Category - I Authorised Dealer Banks Madam/Sir,
Liberalised
Remittance Scheme of USD 50,000 for Resident Individuals
Attention of Authorised Dealer
Category I (AD – Category I) banks is invited to the A.P.
(DIR Series) Circular No. 64 dated February 4, 2004, Foreign Exchange Management
(Current Account Transactions) Rules, 2000 (Rules) as amended from time to time
and A.P. (DIR Series)
Circular No.66 dated January 13, 2003. In
terms of the above mentioned Rules and directions –
- a resident individual is permitted to remit up
to USD 25,000 per calendar year under the Liberalised Remittance Scheme of USD
25,000 (the Scheme) for any current or capital account transactions or a combination
of both subject to specified terms and conditions including remittance facility
not being made available for certain purposes,
- in terms of the Current Account Transactions Rules
- a resident individual is permitted to remit upto
USD 5000 per remitter/ donor per annum towards gift ,
- a resident individual is permitted to remit upto
USD 5000 per remitter/ donor per annum towards donation,
- a resident individual is permitted to invest in
overseas companies (a) listed on a recognised stock exchange abroad and (b) which
has the shareholding of at least 10 per cent in an Indian company listed on a
recognised stock exchange in India (as on 1st January of the year of
the investment).
2. With
a view to simplifying the procedures and providing greater flexibility in foreign
exchange transactions, the Liberalised Remittance Scheme of USD 25,000 (the Scheme)
is liberalised further by enhancing the limit of USD 25,000 per calendar
year to USD 50,000 per financial year (April- March) for any current or
capital account transactions or a combination of both. In addition, as a measure
of rationalization, it has also been decided that
limit of USD 50,000 under the Scheme would also
include remittances towards gift and donation by a resident individual.
investment by resident individual in overseas
companies would be subsumed under the Scheme of USD 50,000. The requirement of
10 per cent reciprocal shareholding in the listed Indian companies by such overseas
companies has been dispensed with.
Accordingly, AD – Category I banks
may allow remittance of USD 50,000 per financial year (April- March) by a resident
individual under the revised Scheme. The other terms and conditions as stipulated
in the A. P. (DIR Series)
Circulars No. 64 dated February 4, 2004 and No. 80 dated March 18, 2004 would
continue as hitherto. 3. In
addition, the existing facility of release of exchange by Authorised Persons up
to USD 10,000 or its equivalent in one calendar year on a declaration basis for
one or more private visits to any country (except Nepal and Bhutan) will continue
to be available on a self-declaration basis. However, the facility would be now
available on a financial year (April-March) basis. 4.
As indicated in A.P
(DIR Series) Circular No.80 dated March 18, 2004, soliciting of deposits etc.
under the Scheme by entities which do not have an operational presence in India,
gives rise to supervisory concerns. It is therefore clarified that all banks,
both Indian and foreign, including those not having an operational presence in
India should seek prior approval from the Reserve Bank for the schemes being marketed
by them in India to residents either for soliciting foreign currency deposits
for their foreign/overseas branches or for acting as agents for overseas mutual
funds or any other foreign financial services company. 5. The
resident individual seeking to make the remittance should furnish an Application
–cum- Declaration in the revised format as at Annex-1.
6. AD -
Category I banks may arrange to furnish information on the number of applicants
and total amount remitted under the Scheme, on a quarterly basis, in the Format
at Annex-2, to the Chief General Manager-in-Charge, Foreign Exchange
Department, Foreign Investments Division (EPD), Reserve Bank of India, Central
Office, Mumbai-400001 within 10 days of the reporting quarter. A soft copy of
the statement (in Excel format) may also be sent by e-mail.
7. Necessary
amendments to (i) Foreign Exchange Management (Current Account Transactions) Rules,
2000 (ii) Foreign Exchange Management (Permissible Capital Account Transactions)
Regulations, 2000 and (iii) Foreign Exchange Management (Transfer or Issue of
Any Foreign Security) Regulations, 2000 are being notified separately.
8. AD - Category I banks may
bring the contents of this circular to the notice of their constituents and customers
concerned. 9.
The directions contained in this Circular have been issued under Section 10
(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is
without prejudice to permissions / approvals, if any, required under any other
law. Yours
faithfully,
(Salim Gangadharan)
Chief General
Manager-in-Charge
Annex-1
[A.P.(DIR Series) Circular No.24
dated December 20, 2006] Application
cum Declaration for purchase of foreign exchange under the Liberalised Remittance
Scheme of USD 50,000
(To be completed
by the applicant) I.
Details of the applicant a.
Name ………………………….. b. Address………………………… c.
Account No…………………….. d. PAN No………………………….
II. Details of the foreign
exchange required 1. Amount (Specify
currency)……………………………… 2. Purpose ………………………………………………….
III. Source of funds: ………………………………….
IV. Nature of instrument Draft……………………….. Direct
remittance………… V. Details of
the remittance made under the Scheme in the financial year (April- March) 200…
Date :……………… Amount :………….
VI. Details of the Beneficiary
1. Name …………………….. 2.
Address …………………… 3. Country …………………… 4*.
Name and address of the bank………………………. 5*.
Account No……………………………………………..
(* Required only when the remittance
is to be directly credited to the bank account of the beneficiary)
This is
to authorize you to debit my account and effect the foreign exchange remittance/issue
a draft as detailed above. (strike out whichever is not applicable).
Declaration
I, ………………. …………(Name), hereby declare
that the total amount of foreign exchange purchased from or remitted through,
all sources in India during the financial year as per item No. V of the Application,
is within the limit of USD 50,000/-(US Dollar Fifty Thousand only), which is the
limit prescribed by the Reserve Bank for the purpose and certify that the source
of funds for making the said remittance belongs to me and will not be used for
prohibited purposes. Signature of
the applicant (Name)
Certificate
by the Authorised Dealer This
is to certify that the remittance is not being made by/ to ineligible entities
and that the remittance is in conformity with the instructions issued by the Reserve
Bank from time to time under the Scheme. Name
and designation of the authorised official: Place:
Signature Date:
Stamp and seal
Annex-2 [A.P.(DIR
Series) Circular No.24
dated December 20,
2006] Format Statement
indicating the details of remittances made by resident individuals under the Liberalised
Remittance Scheme for the quarter ended 2006
Name of the Bank:
| Sl.No.
| Purpose
of
remittance |
No. of
applicants |
Amount remitted
in USD | | 1.
| Deposit
| | | |
2. |
Purchase of
immovable property | | |
| 3.
| Investment
in equity/debt | | |
| 4.
| Gift
| | | |
5. |
Donation
| | | |
6. |
Others
| | | |
Total
| | |
Name and designation of
the authorised official: Place:
Signature Date: Stamp and seal |