The Liberalized Remittance Scheme (Scheme) notified by the Reserve Bank of India (RBI) for provision of simplified foreign exchange facilities to resident individuals, other than corporates, partnership firms and trusts, has been amended periodically to further liberalize the remittance limits that may be availed of by residents for permissible capital and current account transactions or a combination thereof.
RBI, by its Circular dated 26th September 2007, has relaxed the limits of overseas investments by resident individuals to afford greater flexibility in their foreign exchange dealings.
As per the revised norms, residents may now remit upto USD 200,000 per financial year as against the earlier limit of USD 100,000, for permissible transactions (inter alia) including investments in foreign securities, foreign currency loans raised in India and abroad, transfer of immovable property outside India, guarantees issued by residents in favour of non-residents, remittance of capital assets and remittances towards advertisements in foreign print media, freight of vessels chartered by public sector undertakings, container detention charges etc.
The extant terms and conditions governing the Scheme viz. general permission of RBI for operating and maintaining foreign currency accounts with overseas banks for effecting the remittances under the Scheme, would continue to be available and all procedural formalities and reporting requirements for such remittances would require compliance by eligible residents.
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