Thursday, July 9, 2015

RBI issues FAQs on Forex facilities and 'Liberalised Remittance Scheme' for residents

Are you planning to travel abroad and you are not sure how much foreign exchange can you buy when travelling on private visits to country outside India? You are not sure as how much foreign currency can be carried in cash for travelling abroad? You want to know how much Indian currency can be brought in while coming into India?  
Now RBI has released FAQs in respect of Forex facilities including Liberalized Remittance Scheme for general guidance and to answer these type of queries. Certain FAQs are highlighted as under:
Q.   How much foreign exchange can one buy when traveling abroad on private visits to a country outside India?
For private visits abroad, other than to Nepal and Bhutan, any resident can obtain foreign exchange upto an aggregate amount of USD 2,50,000, from an Authorised Dealer or Full-Fledged Money Changers (FFMCs), in any one financial year, irrespective of the number of visits undertaken during the year.
This limit has been subsumed under the Liberalised Remittance Scheme w.e.f. May 26, 2015. If an individual has already remitted any amount under the Liberalised Remittance Scheme in a financial year, then the applicable limit for travelling purpose for such individual would be reduced from USD 250,000 by the amount so remitted.

Q.   How much foreign currency can be carried in cash for travel abroad?

Country of travel                                                           Limit of Forex

              i.        Travelers proceeding to Iraq and Libya           Upto USD 5000
             ii.        Travelers proceeding to Islamic republic         Upto USD 25000
            iii.        For Haj/Umrah pilgrimage                             USD 250, 000 or specified limit.
           iv.        Others                                                     Upto USD 3000 and balance in bank draft


Q. How much Indian currency can be brought in while coming into India?
Returning from                    Limit of Forex

              i.        Nepal/Bhutan                Upto USD 25,000 in Denomination not exceeding of Rs. 100

             ii.        Others                         Upto USD 25,000

            iii.        Pakistan/ Bangladesh     Upto USD 10,000 per person


  Q.   What is the Liberalised Remittance Scheme (LRS) of USD 2,50,000 ?
 Under the LRS, all resident individuals, including minors, are allowed to freely remit upto USD  2,50,000 in financial year for any permissible current or capital account transaction or a  combination of both.
 Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in  Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, within the limit of USD 2,50,000  only. If an individual has remitted any amount under LRS in a financial year, then the applicable l  limit for such individual would be reduced from USD 250,000 by the amount so remitted. In case  of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural  guardian.


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