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A.Current Account Transactions-Liberalization. 

1.As a step towards liberalisation, Reserve Bank of India has raised the limits for release of foreign exchange under Schedule III to Rule 5 of Foreign Exchange Management (Current Account Transactions) Rules, 2000 as amended from time to time. as detailed below: 

 2.Accordingly, authorised dealers may allow remittances for amounts up to the limits mentioned above for each category, without insisting on any supporting documents but on the basis of self-declaration incorporating the basic details of the transaction and submission of Application in Form A2. Authorised dealers should also ensure that payment for purchase of foreign exchange is made by the applicant by means of cheque or demand draft or by debit to his/her account.

 B.Medical Treatment 

3.RBI has directed that Authorised dealers may release foreign exchange up to USD 100,000 or its equivalent, to resident Indians for medical treatment abroad, without insisting on any estimate from a hospital/doctor in India/abroad.  The other conditions, as stated in paragraph 3 thereof, will remain unchanged. 

C.Consultancy  Services 

4.Further, it has raised the limit for remittance towards consultancy services procured from outside India to USD 1 million per project, stipulated at item 15 of Schedule III ibid.  Authorised dealers may allow the remittance up to USD 1 million subject to the applicant submitting documents to their satisfaction.

 D.Release of Foreign Exchange for Miscellaneous Remittances

 Authorised Dealers may release amounts up to USD 5000 or its equivalent for all permissible current account transactions on the basis of a simple letter from the applicant containing the basic information, viz., names and the addresses of the applicant and the beneficiary, amount to be remitted and the purpose of remittance. Authorised Dealers need not obtain any document, including Form A-2, except a simple letter as stated above as long as the exchange is being purchased for a current account transaction (not included in the Schedules I and II of Government Notification on Current Account Transactions), and the amount does not exceed USD 5000 or its equivalent and the payment is made by a cheque drawn on the applicant's bank account or by a Demand Draft.

 E.ADs may freely allow remittances for the following categories:

(i) Remittance for securing Insurance for Health   from a Company Abroad

(ii) Remittance by Artiste e.g.wrestler, dancer, entertainer etc.

(iii) Commission to Agents abroad for Sale of  Residential Flats/ Commercial Plots in India ADs   may freely allow such   remittances up to USD 25,000 or 5 per cent of the inward remittance,  per transaction, whichever is higher. 

(iv) Short-term Credit to Overseas Offices of Indian Companies 

(v)  Remittance for Advertisement on Foreign Television Channels 

(vi)  Remittance of Royalty and Payment of lump- sum fee

ADs may allow remittances for royalty and payment of lump-sum fee provided the payments are in conformity with the norms as per item No.8 of Schedule II i.e. royalty does not exceed 5 per cent on local sales and 8 per cent on exports and lump-sum payment does not exceed USD 2 million.  

(vii) Remittance for Use and/or Purchase of Trademark/Franchise in India.

ADs may freely allow remittances for use of trade mark/franchise in India.  However, RBI's prior approval will continue to be required for remittance towards purchase of trademark/franchise.