What changed
This Master Circular consolidates existing instructions on miscellaneous remittances from India for residents into a single document. It includes a sunset clause, meaning it will be withdrawn on July 1, 2014, and replaced with an updated version.
What it means for you
Banks must follow the consolidated rules for resident remittances, including prohibited transactions (Schedule I), government-approved ones (Schedule II), and those with limits delegated to ADs (Schedule III). The LRS cap of USD 125,000 per individual remains key. Non-compliance with these rules could lead to regulatory action.
What you must do
- Ensure all resident remittance requests comply with Schedule I, II, and III of FEMA Current Account Rules.
- Verify LRS transactions do not exceed USD 125,000 per individual per financial year.
- Refer to underlying circulars for detailed operational instructions when needed.
Who it affects
All Authorised Persons in Foreign Exchange, Authorised Dealer Category – I banks, Authorised banks handling foreign exchange
What is the LRS limit for resident individuals under this circular?
The Liberalised Remittance Scheme allows resident individuals to remit up to USD 125,000 per financial year for any permissible current or capital account transaction.
What should banks do if a remittance exceeds Schedule III limits?
Applications for remittances exceeding Schedule III limits must be referred to the Regional Office of RBI's Foreign Exchange Department under whose jurisdiction the applicant resides.
Does this circular apply to international credit and debit cards?
Yes, drawal of foreign exchange includes use of International Credit Cards, International Debit Cards, and ATM cards, and all FEMA rules apply to their use.