Companies can now spend more dollars

Mumbai: RBI''s measures towards capital account convertibility in the annual monetary policy on Tuesday, will allow Indian companies to remit up to $10 million for infrastructure consultancy services against the current limit of $1 million. To enable small and medium enterprises (SMEs) to hedge the foreign exchange exposure, the RBI has allowed them to book forward contracts without underlying exposures or past records of exports and imports.

Banks have been allowed to open escrow/ special accounts on behalf of non- residents subject to specific conditions where such accounts are required to be opened in terms of SEBI regulations for open offers, delisting and exit offers.

The central bank has permitted authorised dealers, on request of depositors, to permit remittance of the maturity proceeds of FCNR (B) [foreign currency non- resident bank scheme] deposits to third parties outside India.

The facility of operation of accounts by power of attorney holder is extended to NRO (non- resident ordinary) accounts.

Remittances for donations by corporates for specific purposes, subject to a limit of one per cent of their foreign exchange earnings during the previous three years or $5 million, whichever is lower are allowed.

Corporates are also allowed to remit foreign exchange towards reimbursement of pre- incorporation expenses incurred in India where they do not exceed five per cent of the investment brought into India or $100,000, which ever is higher, on the basis of statutory auditors'' certification.