Higher fund limit under liberalised remittances now

NEW DELHI: The government has issued rules to raise limit on funds individuals can take abroad under liberalised remittances scheme. The limit has been raised to $2.5 lakh (aboutRs 1.6 crore) from the current $1.25 lakh, about Rs 80 lakh.

RBI had announced this increase in the February monetary policy. “Individuals can avail of foreign exchange facility for the following purposes within limit of $2,50,000 only. Additional remittance in excess of this for the following purposes shall require prior approval of the Reserve Bank,” the rules said.

The new rules, the Foreign Exchange Management ( Current Account Transactions) Amendment Rules, 2015, clearly lists remittances that require RBI’s permission.

Individuals can use this facility to transfer funds for private visits to any country (except Nepal and Bhutan), gift or donation, going abroad for employment, emigration, maintenance of close relatives abroad, travel for business, or attending a conference or specialised training or medical treatment abroad. Studies abroad and any other current account transaction is also covered under this scheme.