Today RBI had announced in its circular that forex Remittance limit for Residential individuals has been reduced from USD 200,000 to USD 75,000 per financial year with immediate effect.
Key notes from the RBI Circulars
1)Liberealised Remittance Scheme should not be used for making remittances for any prohibited or illegal activities such as margin trading, lottery etc
2)The scheme should no longer be used for acquisition of Real Estate, directly or indirectly, outside India. Therefore, AD Category-I banks may henceforth not allow any remittances under the LRS Scheme for acquisition of immovable property outside India.
3)Resident individuals have now been allowed to set up Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS) outside India for bonafide business activities outside India within the limit of USD 75,000 with effect from August 5, 2013 and subject to the terms and conditions stipulated in Notification No.FEMA 263/RB-2013 dated August 5, 2013.
The RBI press release said that “this reduced limit would also apply to remittances made under the ODI (overseas direct investment) scheme by Indian companies for setting up unincorporated entities outside India in the energy and natural resources sectors. This reduction in limit, however, would not apply to ODI by Navratna PSUs, ONGC Videsh Ltd and Oil India in overseas unincorporated entities and incorporated entities, in the oil sector.”
While the measures are aimed at moderating outflows, the RBI added that genuine requirement beyond these limits will continue to be considered under the approval route
Reference to RBI Circular
10 Replies to “RBI Reduced Remittance limit from USD 200,000 to USD…”
how our markets will react on this news?
No much impact. However this will put a cap on indian forex traders who remit payment to international forex brokers and such illegal forextrading activity will be controlled to some extend. And also the companies/individuals who are looking for investing in real estate would be affected as it is banned now.
As an individual, How much NSE – USDINR LOTS one can invest in Nse usdinr currency marginal trading?
how rule differs place to place
Welcome to “Overseas Trading”
Rationale of overseas trading facility offered by ICICIdirect
Under Liberalized Remittance Scheme of Reserve Bank of India, Resident Individuals are allowed to remit up to USD 2,00,000 in a financial year (April to March) for any current or capital account transaction or combination of both. Under this scheme ICICIdirect has facilitated its customers to invest in various Stocks and Options that are traded on the exchanges in United States of America.
Customers of ICICIdirect are eligible for this service
All resident individuals are eligible to avail this facility. This facility is currently not available to corporate, partnership firms, HUF, Trusts, and NRIs etc.
Products offered under overseas trading facility
Exchange Traded Funds
@Sam : Probably i guess ICICI direct is not offering margin trading. And this kind of overseas trading requires huge deposit.
i want aplication form form for foreign currency remittances ,on which sight i can get this application,i have draft in sterling pounds which can be deposited with rbi for transfer in local branchwhere i have account
KINDLY TELLME PROCEDURE HOW TO DEPOSIT DEMANDDRFT IN BRITISH STERLING POUNDS IN MY LOCAL BRANCHACCOUNT OR SHOULD I SUBMIT WITHRESERVEBANK OF INDIA ,KINDLY EXPLIAN
Can you clear me on the forex trading from India –
I know its not authorized to do forex trading living in India. But Im still doing it.
Anything has a loop hole. I do trade and get some profits. and withdrew using Moneybookers/Skrill
Now my question is –
If im withdrawing money to my local Bank (from Forex) – If Bank questions me on the source of remittence
What should be my answer?
and what are the ways and legality in getting fx traing profits to my bank accounts.
Need some information on it as i dont want to stop fx trading.
Thanks in advance!
How much foreign exchange can be remitted in a FY by HUF to one of its co-parcners who is resident of USA? Thanks.
Please email me your clarification.
Under Liberalized Remittance scheme currently one can transfer money upto 1,25,000 USD per year. However LRS scheme applicable only to Individual however it doesn’t cover HUF.