Remittance Scheme for Resident Individuals- Enhancement of limit from USD 50,000 to USD 100,000
The existing limit of USD 50,000 per financial year under the Scheme has been enhanced to USD 100,000 per financial year (April- March). Accordingly, AD Category – I banks may allow remittance up to USD 100,000, per financial year, for any permitted current or capital account transactions or a combination of both.
RBI clarifies that such remittances are allowed under the Scheme only in respect of permissible current or capital account transactions. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.
RBI further clarifies that banks should not extend any kind of credit facilities to resident individuals to facilitate remittances under the Scheme.
CIRCULAR NO. 51/RBI., Dated: May 8, 2007