What are the RBI guidelines for Forex Facilities?

Liberalized Remittance Scheme
A.P. (DIR Series) Circular No.106 dated 1st June, 2015, RBI has increased the limit under Liberalised Remittance Scheme for Resident Individuals from USD 125,000 to USD 250,000. Accordingly, AD Category –I banks may now allow remittances up to USD 250,000 per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both.


Eligibility:
All Resident individuals are eligible to avail of the facility under the scheme. This facility is not available to Corporates, Partnership firms, HUF, Trusts etc.


Purpose:
This facility is available for making remittances up to USD 250,000/- per individual per financial year (April-March) for any current or Capital account transactions or a combination of both.

 

Capital Account transactions covered under LRS are as follow:

 

RBI has also brought the following purposes mentioned in the Schedule III under the umbrella of LRS:.

 

Remittances for the following purpose are prohibited under Schedule-I mentioned in this scheme:

 

The 3 Pre conditions set by RBI for making remittance under LRS:

 

Form 15 CA CB Mandatory for FX Transaction

From 1st October 2013, as per the circular no. 2659(E) dated 2nd September, 2013, from Ministry of Finance, for certain FX and Trade transactions, submission of Form No. 15CA and CB has been made mandatory Except the purpose code listed below -

Contact your branch for further details.



International Credit Cards

International Credit Cards can be used for:

 

Overseas Trading in Foreign Exchange through electronic/internet trading portals

As per RBI circular No 46 dated September 17, 2013, it has been clarified that overseas forex trading through digital trading portals, in respect of the margin payments being made by their customer for online forex trading transactions( directly /Indirectly ) through their credit cards / Net Banking is prohibited form of transaction

 

Surrender of Foreign Exchange on Return

Foreign exchange up to US$ 2,000, in the form of foreign currency notes or travellers' cheques (TCs) can be retained indefinitely for future use. Amounts in excess of $2000 have to be surrendered to a bank within 180 days of return or credited to RFC (D) account. Foreign coins can be retained indefinitely without any limit.

 

Resident Foreign Currency (Domestic) Account

Residents can open Resident Foreign Currency (Domestic) Account with a bank in India for crediting:

Click here to know how to open an RFC Domestic account.