Master Direction - Other Remittance Facilities (Updated as on May 06, 2026)
UR
- Applies toBanks that handle foreign money
- StatusIn force
- ImportanceFOR INFORMATION
- IssuedJan 04, 2016
- Amendmentsnone tracked
- Length34 points in 2 sections · 3 min read
The four dates on this rule
- PublishedJan 04, 2016The day RBI put this document out.
- Starts to applyNot statedNot stated separately in this document. Read the rule itself before you assume a start date.
- Time to get readyNot statedCannot be worked out until the day it starts to apply is known.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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Numbers to remember
| 180 days | A resident gets 180 days to hand back unused foreign exchange to a bank. RBI Para 3.1.3 |
| 10 days | Prepaid travel card refunds are allowed only after 10 days from the last use. RBI Para 3.4.5 |
| one per cent | Companies may donate up to one per cent of past forex earnings, or 5,000,000 dollars. RBI Para 4.1 |
| five per cent | Commission to sale agents abroad is capped at 25,000 dollars, or five per cent of the remittance. RBI Para 4.2 |
| one year | AD banks must keep each Form A2 on file for at least one year. RBI Para 6.4 |
What it says
Must know
1. Written to every AD bank
RBI addresses this whole rulebook to every Authorised Person dealing in foreign exchange.
2. No forex for Nepal, Bhutan
No foreign exchange may be released for travel to Nepal or Bhutan.
3. Lottery remittances are banned
Sending money abroad for any lottery scheme is banned outright.
4. Sits under the LRS cap
These facilities sit inside the 250,000 dollar-a-year Liberalised Remittance Scheme.
5. Above cap needs RBI okay
Going over that limit needs the Reserve Bank's own prior permission.
6. 3,000 dollar travel cash limit
Travellers to most countries may carry up to 3000 dollars in cash.
7. Higher limit for Iraq, Libya
Travellers to Iraq or Libya may carry up to 5000 dollars in cash.
8. Full cash for Haj pilgrims
Haj and Umrah pilgrims may get their full entitlement released in cash.
9. 180 days to surrender cash
A resident gets 180 days to hand back unused foreign exchange to a bank.
10. 2,000 dollars, no time limit
Returning travellers may keep up to 2000 dollars in cash with no deadline.
11. Net salary remittance allowed
Certain foreign staff on deputation may remit up to their full net salary.
12. NRI medical bills covered
A resident may pay an NRI close relative's own medical bills under this rule.
13. No cap on card spending
RBI sets no overall cap on international credit card spending online.
14. No Nepal, Bhutan card use
International credit cards may not be used for payments in Nepal or Bhutan.
15. Card use stays within limits
Store and smart card use abroad must stay inside ordinary current-account limits.
16. 10 day wait on refunds
Prepaid travel card refunds are allowed only after 10 days from the last use.
17. 100 dollars held back
On travel-card redemption, up to 100 dollars may be held back by the issuer.
18. One per cent donation cap
Companies may donate up to one per cent of past forex earnings, or 5,000,000 dollars.
19. Cap on flat-sale agent fees
Commission to sale agents abroad is capped at 25,000 dollars, or five per cent of the remittance.
20. 10 million dollar consultancy cap
Infrastructure consultancy remittances are capped at 10,000,000 dollars a project.
21. Five per cent pre-incorporation cap
Pre-incorporation cost reimbursement is capped at five per cent of investment, or 100,000 dollars.
22. School fees need no nod
AD banks may sell forex for embassy-run school fees without asking RBI first.
23. Global bid payments allowed
Residents may pay and receive foreign exchange on Government-authorised global bids.
24. Royalty payments need no nod
AD banks may release royalty payments under tech tie-ups without a separate Commerce Ministry nod.
25. Trademark buys need no nod
AD banks may release forex for buying a trademark or franchise without RBI's approval.
26. Keep Form A2 one year
AD banks must keep each Form A2 on file for at least one year.
27. Form A2 for every transfer
AD banks must get Form A2 for every cross-border remittance, whatever its size.
28. Tax law still applies
AD banks must still follow ordinary tax law on every remittance they process.
29. No call-back service payments
Payment for telephone call-back services may never be remitted abroad.
Background
1. Made under a 2000 rule
This rulebook comes from a Government of India rule made under FEMA in 2000.
2. RBI's own added powers
RBI also issues its own directions to Authorised Persons under a separate FEMA section.
3. One place for resident rules
RBI compiled every remittance-facility rule for residents into this one Master Direction.
4. RBI holds no reader funds
RBI never itself holds individual or company funds for later payout.
5. Deputation under three years
Anyone on deputation for under three years is not permanently resident.