FEMA - Foreign Exchange Facility
GOVERNMENT has amended the Foreign Exchange Management (Current Account Transactions) Rules, 2000 :
Facilities for individuals- Individuals can avail of foreign exchange facility for the following purposes within the limit of USD 2,50,000 only. Any additional remittance in excess of the said limit for the following purposes shall require prior approval of the Reserve Bank of India.
1. Private visits to any country (except Nepal and Bhutan).
2. Gift or donation.
3. Going abroad for employment.
4. Emigration.
5. Maintenance of close relatives abroad.
6. Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up.
7. Expenses in connection with medical treatment abroad.
8. Studies abroad.
9. Any other current account transaction
Facilities for persons other than individual - The following remittances by persons other than individuals shall require prior approval of the Reserve Bank of India.
(i) Donations exceeding one per cent. of their foreign exchange earnings during the previous three financial years or USD 5,000,000, whichever is less, for-
(a) creation of Chairs in reputed educational institutes,
(b) contribution to funds (not being an investment fund) promoted by educational institutes; and
(c) contribution to a technical institution or body or association in the field of activity of the donor Company.
(ii) Commission, per transaction, to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or five percent. of the inward remittance whichever is more.
(iii) Remittances exceeding USD 10,000,000 per project for any consultancy services in respect of infrastructure projects and USD 1,000,000 per project, for other consultancy services procured from outside India.