RBI liberalises overseas fund transfers of up to $25,000
07 May 2012
The Reserve Bank of India (RBI) has raised the limit for foreign exchange transfers for miscellaneous purposes to $25,000, from $5,000, with immediate effect.
RBI has advised authorised dealer banks to allow such transactions without following through documentation formalities.
RBI has advised authorised dealer banks to permit such transactions on the basis of a simple letter from the applicant containing the basic information, viz, names and the addresses of the applicant and the beneficiary, amount to be remitted and the purpose of remittance.
''Authorised dealers need not obtain any document, including Form A-2, except a simple letter as stated above as long as the foreign exchange is being purchased for a current account transaction (not included in the Schedules I and II of government notification on Current Account Transactions), and the amount does not exceed $25,000 or its equivalent and the payment is made by a cheque drawn on the applicant's bank account or by a demand draft,'' RBI said in a notification.
RBI had, in its 12 September 2002 circular, allowed authorised dealers to release amounts up to $500 or its equivalent for all permissible transactions on the basis of a simple letter from the applicant containing the basic information, viz, names and the addresses of the applicant and the beneficiary, amount to be remitted and the purpose of remittance.
The limit was subsequently enhanced to $5,000 in terms of another circular issued on 23 December 2003.
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