Do
You Know ?????
Some of
the commonly or frequently asked questions by residents in connection
with foreign exchange facilities or restrictions have been answered
in following paragraphs.
1. How
much exchange is available for a business trip? Authorised
dealers can release foreign exchange up to US$25,000 for a business
trip to any country other than Nepal and Bhutan. Release of foreign
exchange exceeding US$25,000 for a travel abroad (other than Nepal and
Bhutan) for business purposes, irrespective of period of stay, requires
prior permission from Reserve Bank. Visits in connection with attending
of an international conference, seminar, specialised training, study
tour, apprentice training, etc., are treated as business visits. Visit
abroad for medical treatment and/or check up also falls within this
category.
2. Can
one obtain additional foreign exchange for medical treatment outside India?
A
person visiting abroad for medical treatment can also obtain foreign exchange
upto the amount recommended by the doctor or hospital abroad for his treatment.
This exchange is to meet the expenses involved in treatment and in addition
to the amount referred to in paragraph 1 above.
3.
How much exchange is available for studies outside India?
Release of
foreign exchange for studies abroad up to the estimate given by an institution
abroad or US$30,000 per academic year, whichever is higher, does not require
prior permission from the Reserve Bank.
4. How
much foreign exchange can one buy when going for tourism to a country
outside India? In
connection with private visits abroad, viz., for tourism purposes, etc.,
foreign exchange up to US$10,000, in any one calendar year may be obtained
from an authorised dealer. The ceiling of US$10,000 is applicable in aggregate
and foreign exchange may be obtained for one or more than one visits provided
the aggregate foreign exchange availed of in one calendar year does not
exceed the prescribed ceiling of US$10,000 {The facility was earlier called
B.T.Q or F.T.S.}. This US$10,000 (BTQ) can be availed of by a person alongwith
foreign exchange for travel abroad for any purpose, including for employment
or immigration or studies. However, no foreign exchange is available for
visit to Nepal and/or Bhutan for any purpose.
5. How
much foreign exchange is available to a person going abroad on employment?
Person
going abroad for employment can draw foreign exchange upto US$5,000 from
any authorised dealer in India.
6. How
much foreign exchange is available to a person going abroad on immigration?
Person
going abroad for immigration can draw foreign exchange upto US$ 5,000
or the amount prescribed by the country of emigration from an authorised
dealer in India. These amount is only to meet the incidental expenses
in the country of migration. No amount of foreign exchange can be remitted
outside India to become eligible or for earning points or credits for
immigration. All such remittances require prior permission of the Reserve
Bank.
7. Is there
any purpose for which going abroad requires prior approval from the Reserve
Bank or Govt. of India? Dance
troupes, artistes, etc., who wish to undertake cultural tours abroad,
should obtain prior approval from the Ministry of Human Resources Development,
Government of India, New Delhi.
8. From
where one can buy foreign exchange? Foreign
exchange can be purchased from any authorised dealer. Besides authorised
dealers, full-fledged money changers are also permitted to release exchange
for business and private visits.
9. How
much foreign exchange can be purchased in foreign currency notes while
buying exchange for travel abroad? Travellers
are allowed to purchase foreign currency notes/coins only up to US$ 2000.
Balance amount can be taken in the form of travellers cheque or bankers
draft. Exceptions to this are (a) travellers proceeding to Iraq and Libya
can draw foreign exchange in the form of foreign currency notes and coins
not exceeding US$ 5000 or its equivalent; (b) travellers proceeding to
the Islamic Republic of Iran, Russian Federation and other Republics of
Commonwealth of Independent States can draw entire foreign exchange released
in form of foreign currency notes or coins.
10. Do
same Rules apply to persons going for studies abroad? For
the purpose of studies abroad, exchange for maintenance expenses is released
in the form of (i) currency notes up to US$ 2,000, (ii) the balance foreign
exchange may be taken in form of travellers cheques or bank draft payable
overseas.
11. How
much in advance one can buy foreign exchange for travel abroad?
The foreign
exchange acquired for any purpose has to be used within 60 days of purchase.
In case it is not possible to use the foreign exchange within the period
of 60 days it should be surrendered to an authorised dealer.
12. Can
one pay by cash full rupee equivalent of foreign exchange being purchased
for travel abroad ? Foreign
exchange for travel abroad can be purchased from banks against rupee payment
in cash up to Rs.50,000/-. However, if the rupee equivalent exceeds Rs.50,000/-,
the entire payment should be made by way of a crossed cheque/bankers cheque/pay
order/demand draft only.
13. Within
what period a traveller who has returned to India is required to surrender
foreign exchange? On
return from a foreign trip travellers are required to surrender unspent
foreign exchange held in the form of currency notes within 90days and
travellers cheques within 180 days of return. However, they are free to
retain foreign exchange upto US$2,000, in form of foreign currency notes
or TCs for future use.
14. On
return to India can one retain some foreign exchange? Residents
are permitted to hold foreign currency up to US$2,000 or its equivalent
provided the foreign exchange was -
acquired
by him while on a visit to any place outside India by way of payment
for services not arising from any business in or anything done in
India; or
acquired
by him, from any person not resident in India and who is on a visit
to India, as honorarium or gift or for services rendered or in settlement
of any lawful obligation;or
acquired
by him by way of honorarium or gift while on a visit to any place
outside India; or
acquired
by him from an authorised person for travel abroad and represents
the unspent amount thereof.
15. Is one required to surrender foreign coins also to an authorised
dealer?
There is no restriction on residents holding foreign
coins.
16. How much foreign exchange can one send as gift
/ donation to a person resident outside India?
Any person resident in India can remit upto US$5,000
in any one year as a gift to a person residing outside India or as donation
to a charitable/educational / religious /cultural organisation outside
India. Remittances exceeding the limit require prior permission from
the Reserve Bank.
17. Is one permitted to use International Credit Card
(ICC) for undertaking foreign exchange transactions?
Use of the International Credit Cards (ICCs) / ATMs/
Debit Cards can be made for making personal payments like subscription
to foreign journals, internet subscription, etc., and for travel abroad
in connection with various purposes only to the extent of the limits
specified above. However, the cards can be freely used in India. Use
of these instruments for payment in foreign exchange in Nepal and Bhutan
is not permitted.
18. While coming into India how much Indian currency
can be brought in?
A person coming in to India from abroad can bring in
with him Indian currency notes within the limits given below:
a. upto Rs. 5,000
from any country other than Nepal or Bhutan, and
b. any amount in
denomination not exceeding Rs.100 from Nepal or Bhutan.
19. While going abroad how much
Indian currency can be taken out?
A person going out of India can take out with him Indian
currency notes within the limits given below:
a. upto Rs.5000 to
any country other than Nepal or Bhutan, and
b. any amount in denomination
not exceeding Rs.100 to Nepal or Bhutan.
20. While coming into
India how much foreign exchange can be brought in?
A person coming into India from abroad can bring with
him foreign exchange without any limit provided if foreign currency
notes, or travellers cheques exceed US$ 10,000/- or its equivalent and/or
the value of foreign currency exceeds US$ 5,000/- or its equivalent,
it should be declared to the Customs Authorities at the Airport in the
Currency Declaration Form (CDF), on arrival in India.
21. While going abroad how much foreign exchange can
a person carry?
Residents are free to carry the foreign exchange purchased
from an authorised dealer or money changer in accordance with the Rules.
In addition, they can also carry up to US$ 2,000, if already held by
them (see item13 above) in accordance with the Regulations.
22. Is one required to follow complete export procedure
when a gift parcel is sent outside India?
A person resident in India is free to send (export) any
gift article of value not exceeding Rs. 1,00,000 provided export of
that item is not prohibited under the extant EXIM Policy.
23. How much jewellery one can carry while going abroad?
Taking personal jewellery out of India is governed by
Baggage Rules framed under Export-Import Policy by the Government of
India.
24. Can a resident open a foreign currency denominated
account in India?
Persons resident in India are permitted to maintain foreign
currency accounts in India under following two Schemes:
- EEFC Accounts
To avoid exchange loss on conversion of foreign exchange
into Indian Rupee & Rupee into foreign exchange, residents can retain
upto 50% of foreign currency remittances received from abroad in a foreign
currency account, viz., EEFC account, with an authorised dealer in India
. Funds held in EEFC account can be utilised for current account transactions
and also for approved capital account transactions as specified by the
extant Rules/Regulations/Notifications/Directives issued by the Government/RBI
from time to time.
- RFC Accounts :-
Returning Indians, i.e., those Indians, who were non-residents
earlier, and are returning now for permanent stay, are permitted to
open, hold and maintain with an authorised dealer in India a Resident
Foreign Currency (RFC) Account to keep their foreign currency assets.
Assets held outside India at the time of return can be credited to such
accounts. The funds in RFC account are free from all restrictions regarding
utilisation of foreign currency balances including any restriction on
investment outside India. The facility is also available to residents
provided foreign exchange to be credited to such account is received
out of certain specified type of funds/accounts.
25. Can a person resident in India hold assets outside
India?
In terms of sub-section 4, of Section (6) of the Foreign
Exchange Management Act, 1999, a person resident in India is free to
hold, own, transfer or invest in foreign currency, foreign security
or any immovable property situated outside India if such currency, security
or property was acquired, held or owned by such person when he was resident
outside India or inherited from a person who was resident outside India.
General Information
For further details/guidance, please approach any bank
authorised to deal in foreign exchange or contact Regional Offices of
the Exchange Control Department of the Reserve Bank.
Sale,
Purchase, etc., of Immovable Property in India
(As on September 1, 2001)
.Introduction
.The Foreign Exchange Management Act, 1999 (FEMA), came
in force with effect from June 1, 2000. Section 6(3)(i) of the Act empowers
the Reserve Bank to frame regulations to prohibit, restrict or regulate
the acquisition or transfer of immovable property in India by certain
persons mainly residents outside India. The restrictions under this
clause are not applicable to a lease of immovable property for a period
not exceeding five years. The regulations made by the Reserve Bank are
called Foreign Exchange Management (Acquisition and Transfer of Immovable
property in India) Regulations, 2000, and have been notified vide Notification
FEMA No.21/2000-RB of May 3,2000. Full text of the Notification is available
on the Bank's website www.fema.rbi.org.in. Synopsis of the said
Regulations is as under:
.
- All persons, whether resident in India or outside India, who are
citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran,
Nepal or Bhutan, require prior permission of Reserve Bank for acquiring
or transferring any immovable property in India.
- A person resident outside India, who has been permitted by Reserve
Bank to establish a branch, or office, or place of business in India(
excluding a Laison Office), has general permission of Reserve Bank
to acquire immovable property in India , which is necessary for, or
incidental to, the activity. However, in such cases a declaration
,in prescribed form (IPI), is required to be filed with the Reserve
Bank, within 90 days of the acquisition of immovable property.
- An Indian citizen resident outside India does not require any permission
to acquire any immovable property in India other than agricultural/
plantation property or a farm house.
- An Indian citizen resident outside India does not require any permission
to transfer any immovable property, to a citizen of India who is resident
in India.
- An Indian citizen resident outside India does not require any permission
to transfer any immovable property other than agricultural or plantation
property or farm house, to a person who :-
- is a citizen of India resident outside India , or
- is a person of Indian origin resident outside India.
- A person of Indian origin resident outside India does not require
any permission to acquire any immovable property other than agricultural
land/farm house/plantation property in India by purchase, from out
of funds:
- received in India by way of inward remittance through banking
channel from any place outside India, or
- held in any non-resident account maintained in accordance with
the provisions of the Act and the regulations made by the Reserve
Bank under the Act.
- A person of Indian origin resident outside India does not require
any permission to acquire any immovable property in India other than
agricultural land/farm house/plantation property by way of gift from
a person resident in India or from a person resident outside India
who is a citizen of India or from a person of Indian origin resident
outside India.
- A person of Indian origin resident outside India does not require
any permission to acquire any immovable property in India by way of
inheritance from a person resident outside India who had acquired
such property in accordance with the provisions of the foreign exchange
law in force at the time of acquisition by him or the provisions of
these Regulations or from a person resident in India.
- A person of Indian origin resident outside India does not require
any permission to transfer any immovable property in India other than
agricultural land/farm house/plantation property, by way of sale to
a person resident in India.
- A person of Indian origin resident outside India does not require
any permission to transfer agricultural land/farm house/plantation
property in India, by way of gift or sale to a person resident in
India who is a citizen of India.
- A person of Indian origin resident outside India does not require
any permission to transfer residential or commercial property in India
by way of gift to a person resident in India or to a person resident
outside India who is a citizen of India or to a person of Indian Origin
resident outside India.
- Repatriation outside India, including credit to NRE or FCNR account,
of sale proceeds of any immovable property situated in India, requires
prior permission of the Reserve Bank except in circumstances stated
in paragraph 13 below.
- In the event of sale of immovable property other than agricultural
land/farm house/plantation property in India by a person resident
outside India, who is a citizen of India, or a person of Indian origin,
the authorised dealer may allow repatriation of the sale proceeds
outside India, provided all the following conditions are satisfied
:-
- the immovable property was acquired by the seller in accordance
with the provisions of the Exchange Control Rules /Regulations/Law
in force at the time of acquisition, or the provisions of the Regulations
framed under the Foreign Exchange Management Act,1999;
- the sale takes place after three years from the date of acquisition
of such immovable property or from the date of payment of final
instalment of consideration for its acquisition, whichever is later;
- the amount to be repatriated does not exceed (a) the amount paid
for acquisition of the immovable property in foreign exchange received
through normal banking channels or out of funds held in foreign
currency non-resident account or (b) the foreign currency equivalent,
as on the date of payment, of the amount paid where such payment
was made from the funds held in non-resident external account for
acquisition of the property; and
- in the case of residential property, the repatriation of sale
proceeds is restricted to not more than two such properties.
- All requests for acquisition of agricultural land/plantation property/
farm house by any person resident outside India or foreign nationals
may be made to The Chief General Manager, Reserve Bank of India, Central
Office, Exchange Control Department, Foreign Investment Division (III),
Mumbai 400 001.
- The NRIs/ PIOs can freely rent out their immovable property in India
without seeking any permission from the Reserve Bank. The rental income
being a current account transaction is freely repatriable outside
India.
Notes:
A. For the purposes of transactions, i.e., transfer,
sale, purchase, etc., dealing with immovable property in India, a
person of Indian origin is defined as under:
" an individual (not being a citizen of Pakistan or Bangladesh
or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan),
who:
( i) at any time, held Indian passport;
or
(ii) who or either of whose father or whose grandfather
was a citizen of India by virtue of the Constitution of India
or the Citizenship Act, 1955 (57 of 1955). "
B. Queries on the subject can be transmitted by e-mail
on rbecfidt@bol.net.in .
C. For further details please contact the nearest Regional
Office of the Reserve Bank of India (Exchange Control Department).
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