What changed
This Master Circular consolidates existing instructions on miscellaneous remittances from India for residents, updated as of January 1, 2008. It includes a sunset clause, withdrawing on July 1, 2008, to be replaced by an updated version.
What it means for you
Banks and authorised dealers get a single reference document for resident remittance rules, reducing confusion from multiple circulars. The sunset clause signals RBI's intent to regularly update these guidelines, requiring lenders to stay alert for the next version.
What you must do
- Review the consolidated instructions for all resident remittance categories (medical, travel, business, etc.) to ensure compliance.
- Note the sunset clause: this circular expires on July 1, 2008; prepare for the updated version.
- Verify that your bank's processes align with the Liberalised Remittance Scheme limit of USD 200,000 and other thresholds.
- Train staff on the rules for International Credit/Debit Cards and ATM cards as they are treated as 'drawal' of foreign exchange.
Who it affects
All Authorised Persons in Foreign Exchange (banks, AD Category I & II), Residents of India making remittances for current account transactions, Tour operators and travel agents handling foreign exchange
What is the sunset clause in this Master Circular?
The circular will stand withdrawn on July 1, 2008, and be replaced by an updated Master Circular on the same subject.
Does this circular change the Liberalised Remittance Scheme limit?
No, it only consolidates existing instructions; the scheme limit remains USD 200,000 as per the source.
Are International Credit Cards covered under these rules?
Yes, the circular states that 'drawal' of foreign exchange includes use of International Credit Cards, Debit Cards, and ATM cards.