Insurance abroad Insurance abroad ‘Insurance’ is defined as a ‘capital account transaction’, as the commitments are for a very long period. The restrictions are contained in Foreign Exchange Management (Insurance) Regulations, 2000. A person resident in India cannot take any general or life insurance policy issued by an insurer outside India without permission of RBI.… Read More »
Foreign Exchange for Study Abroad Study abroad upto estimate from the institution abroad or US $ 1,00,000 whichever is higher, per academic year is permitted. Exchange upto USD 1,00,000 can be released on self-declaration basis, on submission of application in form A2, without any supporting documents. Estimate is required if exchange requirement is higher than… Read More »
Foreign Exchange for immigration and Employment abroad Foreign Exchange for immigration abroad Exchange for immigration upto US $ 1,00,000 or amount prescribed by country of emigration is permitted. Exchange can be released on self-declaration basis on submission of application in form A2, without any supporting documents – – Exchange above this limit will require RBI… Read More »
Foreign exchange for medical treatment Foreign exchange for medical treatment :Authorised dealers may release foreign exchange upto USD 100,000 on basis of self declaration without insisting on any estimate from a hospital doctor. For amount exceeding USD 100,000 estimate from doctor in India or hospital/doctor abroad is required to be submitted to authorised dealer. Person fallen… Read More »
Foreign exchange for Travel 1.1 Foreign travel Provisions for release of foreign exchange for travel are quite liberal but have not been completely removed. Instructions are summarised in RBI Master Circular No. 6/2014-15 dated 1-7-2014 on ‘Miscellaneous Remittances from India – facilities for Residents’ [earlier Master Circular No. 6/2013-14 dated 1-7-2013]. Release of exchange for… Read More »
PROCEDURES FOR REMITTANCE AND RESTRICTIONS 1 General procedure for remittance of foreign exchange Most of the powers in respect of routine matters for remittance of foreign exchange have been delegated by RBI to Authorised Dealers. Thus, if the remittance is as per guidelines/regulations, it is permitted by Authorised Dealer himself. As a general rule, all current… Read More »
Appeal under FEMA FEMA provides for appeal against order of Adjudicating Authority. If the adjudicating authority is Assistant Director of Enforcement or Deputy Director of Enforcement, appeal will lie with Special Director (Appeals). Further appeal lies with ‘Appellate Tribunal for Foreign Exchange’. If the adjudicating authority is senior to Deputy/Assistant Director, appeal lies directly with… Read More »
Adjudication under FEMA Procedure for adjudication The procedure for adjudication and appeal has been specified in Foreign Exchange Management (Adjudication Proceedings and Appeal) Rules, 2000. Holding of Enquiry – Adjudicating Authority appointed by Central Government will issue a show cause notice to person who is alleged to have committed the contravention, indicating nature of contravention.… Read More »
Penalty under FEMA Penalty that can be imposed under FEMA The penalty can be upto thrice the sum involved in such contravention where the amount is quantifiable. If the amount is not quantifiable, penalty upto Rs. two lakhs can be imposed. If contravention is of continuing nature, further penalty upto Rs. 5,000 per day during… Read More »
Separate PIS sub-account by NRI NRI may open a separate sub-account of NRE/NRO account with authorized dealers for routing receipt and payment of transactions relating to purchase and sale of shares and convertible debentures under NRE (PIS) account for investment made on repatriation basis and NRO(PIS) account for investment made on non-repatriation basis. Only permitted… Read More »