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Foreign Exchange Management (Current Account Transactions)Rules, 2000 

 

Schedule I

PURPOSES FOR WHICH NO OUTWARD REMITTANCES WILL BE PERMITTED

  1. Remittance out of lottery winnings.
  2. Remittance of income from racing/riding etc. or any other hobby
  3. Remittance for purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes, etc.
  4. Payment of commission on exports made towards equity investment in Joint Ventures/ Wholly Owned Subsidiaries abroad of Indian companies.
  5. Remittance of dividend by any company to which the requirement of dividend balancing is applicable.
  6. Payment of commission on exports under Rupee State Credit Route.
  7. Payment related to "Call Back Services" of telephones.
  8. Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme.

Schedule II

PURPOSES FOR WHICH OUTWARD REMITTANCES WILL BE ALLOWED ONLY WITH THE APPROVAL OF GOVERNMENT OF INDIA

Purpose of Remittance Ministry/Department of Govt. of India whose approval is required
1. Cultural Tours Ministry of Human Resources Development, (Department of Education and Culture)
2. Advertisement in foreign print media for the purposes other than promotion of tourism, foreign investments and international bidding (exceeding USD 10,000) by a State Government and its Public Sector Undertakings Ministry of Finance, (Department of Economic Affairs)
3. Remittance of freight of vessel chartered by a PSU Ministry of Surface Transport, (Chartering Wing)
4. Payment of import by a Govt. Department or a PSU on c.i.f. basis (i.e. other than f.o.b. and f.a.s. basis) Ministry of Surface Transport, (Chartering Wing)
5. Multi-modal transport operators making remittance to their agents abroad Registration Certificate from the Director General of Shipping
6. Remittance of container detention charges exceeding the rate prescribed by Director General of Shipping Ministry of Surface Transport (Director General of Shipping)
7. Remittances under technical collaboration agreements where payment of royalty exceeds 5per cent on local sales and 8per cent on exports and lump-sum payment exceeds USD 2 million Ministry of Industry and Commerce
8. Remittance of prize money/sponsorship of sports activity abroad by a person other than International / National / State Level sports bodies, if the amount involved exceeds USD 100,000 Ministry of Human Resources Development (Department of Youth Affairs and Sports)
9. Payment for securing Insurance for health from a company abroad Ministry of Finance, (Insurance Division)
10. Remittance for membership of P& I Club Ministry of Finance, (Insurance Division)
11 Remittance of hiring charges of transponder. Ministry of Information & Broadcasting

 

Schedule III

PURPOSES FOR WHICH OUTWARD REMITTANCES ARE SOUGHT AS MENTIONED BELOW REQUIRE PRIOR  APPROVAL OF RESERVE BANK OF INDIA 

1.      Release of exchange exceeding USD 10,000 or its equivalent in one calendar      year, for one or more private visits to any country (except Nepal and Bhutan

2.      Gift remittance exceeding USD 5,000 per remitter/donor per annum

  1. Donation exceeding USD 5,000 per remitter/donor per annum
  2. Exchange facilities exceeding USD 100,000 for persons going abroad for employment
  3. Exchange facilities for emigration exceeding USD 100,000 or amount prescribed by country of emigration.
  4. . Remittance for maintenance of close relatives abroad,
    1. exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions) of a person who is resident but not permanently resident in India and is a citizen of a foreign state other than Pakistan.
    2. exceeding USD 100,000 per year, per recipient, in all other cases.

Explanation: For the purpose of this item, a person resident in India on account of his employment of a specified duration (irrespective of length thereof) or for a specific job or assignment; the duration of which does not exceed three years, is a resident but not permanently resident.

  1. Release of foreign exchange, exceeding USD 25,000 to a person, irrespective of period of stay, for business travel, or attending a conference or specialised training or for maintenance expenses of a patient going abroad for medical treatment or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/check-up.
  2. Release of exchange for meeting expenses for medical treatment abroad exceeding the estimate from the doctor in India or hospital/doctor abroad
  3. Release of exchange for studies abroad exceeding the estimate from the institution abroad or USD 100,000, per academic year, whichever is higher.
  4. Commission to agents abroad for sale of residential flats/ commercial plots in India, exceeding 5 per cent of the inward remittance or USD 25000 whichever is higher 
  1.  Remittance of royalty and payment of lump-sum fee under the technical collaboration agreement, exceeding 5 percent of local sales and 8 per cent on exports and lump-sum payment exceeding USD 2 million.
  2. Remittance exceeding USD 1,000,000 per project, for any consultancy service procured from outside India.
  3. Remittance exceeding USD 100,000 by an entity in India by way of reimbursement of pre-incorporation expenses.



 
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