Mumbai: The Reserve Bank of India, which raised the permissible overseas remittance limit to $100,000 per person under the liberalised remittance scheme, has now expressly prohibited certain transactions under the scheme.

The RBI has clarified that such remittances are allowed under the scheme only in respect of permissible current or capital account transactions. All other transactions that are otherwise not permissible under FEMA are not allowed.

An RBI circular expressly prohibits any remittances in the nature of margin or margin calls to overseas exchanges / overseas counter-party.

RBI, however, permits domestic entities with exposure to specified base metals to hedge their price risk in international commodity exchanges.

The directives come at a time when foreign currency brokers are approaching brokers in India for tie-ups.