FEMA - Advance Remittance for import of Services
The present limit for advance remittance for all admissible current account transactions for import of services without bank guarantee was raised from USD 100,000 to USD 500,000 or its equivalent.
RBI has now clarified that this is not applicable for a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments.
In the case of a Public Sector Company or a Department/ Undertaking of the Government of India/ State Governments, approval from the Ministry of Finance, Government of India for advance remittance for import of services without bank guarantee for an amount exceeding USD 100,000 (USD One hundred thousand) or its equivalent would continue to be required.
Circular No. 10/ RBI ., Dated: October 5, 2009