Prior Approval Of Reserve Bank Required For Certain Current Account Transactions
[Permissible and Prohibited Current Account Transactions in Case of NRI]
Rule 5 of the aforesaid Rules provide that no person shall draw foreign exchange for a transaction included in the Schedule III without prior approval of the Reserve Bank. For the latest in formation please refer to the Exchange Control Manual or RBI circulars. There are various monetary limits laid down for certain items like gift remittance exceeding US$ 5,000 per beneficiary per annum, donation exceeding US$ 5,000 per annum per beneficiary, etc. However, it is provided that this Rule does not apply where the payment is made out of funds held in RFC Account or EEFC Account of the remitter. Resident individuals can acquire foreign exchange up to $ 10,000 per calendar year for their overseas travel except for visits to Nepal and Bhutan. For the latest relaxations please contact the Reserve Bank of India.
Permissible and Prohibited Current Account Transactions in Case of NRI
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