RBI/2006-2007/379 A. P. (DIR Series) Circular No. 51 Dated 8/5/2007

Liberalised Remittance Scheme for Resident Individuals- Enhancement of limit from USD 50,000 to USD 100,000

To,

All Category - I Authorised Dealer Banks

Madam / Sir,

Attention of Authorised Dealer Category I (AD – Category I) banks is invited to A. P. (DIR Series) Circular No. 64 dated February 4, 2004 and A. P. (DIR Series) Circular No. 24 dated December 20, 2006 on the Liberalised Remittance Scheme for Resident Individuals (the Scheme).

2.  As announced in the Annual Policy Statement for the year 2007-08 (para 137), the existing limit of USD 50,000 per financial year under the Scheme has been enhanced to USD 100,000 per financial year (April- March). Accordingly, AD Category – I banks may allow remittance up to USD 100,000, per financial year, for any permitted current or capital account transactions or a combination of both. The modified Application cum Declaration form is annexed.

3.  It is clarified that such remittances are allowed under the Scheme only in respect of permissible current or capital account transactions. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.

4.  It is further clarified that banks should not extend any kind of credit facilities to resident individuals to facilitate remittances under the Scheme.

5.  All other conditions mentioned in A. P. (DIR Series) Circular No. 64 dated February 4, 2004 and A. P. (DIR Series) Circular No. 24 dated December 20, 2006 shall remain unchanged.

6.   Necessary amendments to Foreign Exchange Management (Permissible Capital Account
Transactions) Regulations, 2000 (Notification No. FEMA 16/2000-RB dated 3rd May 2000) are being
notified separately.

7.   AD - Category I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

8.   The directions contained in this Circular have been issued under Section 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Salim Gangadharan)

Chief General Manager