[sbinews] Forex Facilities for Residents (Individuals) -RBI Website

  • From: rspai@xxxxxxxx
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Thu, 18 Dec 2003 06:42:21 +0500

Forex Facilities for Residents (Individuals) (As on October 1, 2003) 

Private Travel 
Foreign exchange upto US$ 10,000 in any calendar year for tourism or private 
travel to any country other than Nepal and Bhutan on the basis of 
self-certification. For travel to Nepal and Bhutan Indian currency can be taken 
without limit except Indian currency notes of denominations of Rs.500 and above.

Study Abroad/Medical treatment abroad/Employment abroad/Emigration/ Maintenance 
of close relatives abroad
Foreign exchange upto US$ 100,000 on the basis of self-certification. For 
students the limit of $100,000 is applicable for each academic year. For 
medical treatment in addition to $100,000, foreign exchange upto US$ 25,000 can 
be taken for meeting boarding/lodging/travel expenses of the patient and also 
the accompanying attendant on self-certification. Amounts in excess of the 
limits can be released on basis of documentary evidence of requirement.

International Credit Cards
International Credit Cards can be used for:
meeting expenses /making purchases while abroad without any limit  
making payment in foreign exchange for purchase of books and other items 
through Internet. 

Residents holding a foreign currency account in India or with a bank overseas 
are also free to obtain ICCs issued by overseas banks and other reputed 

Remittance for Miscellaneous Purposes upto US$ 500
Remittances can be made upto US$ 500, for any miscellaneous purpose, without 
the production of any document. 

Gifts and Donations 
Gifts /donations can be made to anybody upto US$ 5,000 every year per remitter 
on self certification. 

Other Current Account Transactions
Foreign exchange can be freely drawn for all other bonafide current account 
transactions (other than those which are restricted or are subject to specific 
limits) on production of documentary evidence to the satisfaction of the 
Authorised Dealer.

Surrender of Foreign Exchange on Return
Foreign exchange upto 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 90 days and TCs 
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: 
unspent balances after travel abroad 
currency ,TCs, bank drafts received as gifts from or for services rendered to 
non resident while in India 
foreign exchange earnings received, through banking channel, as honorarium, 
consultancy, royalty, for any services or towards exports of goods 

RFC(D) accounts are NOT interest bearing and there is no ceiling on the 
balances that can be built up in these accounts. The balances held in these 
accounts can be used for any purpose for which foreign exchange can be bought 
from a bank in India. 

ESOP Scheme
A resident individual, who is an employee or a director of an Indian office or 
branch of a foreign company or of a subsidiary of a foreign company or of an 
Indian company in which the foreign equity holding is not less that 51 per 
cent, can make remittances for the acquisition of foreign securities under 
Employees Stock Option (ESOP) Scheme without any monetary limit. The scheme is 
subject to the condition that the shares are offered at a concessional price. 

Portfolio Investment - Overseas
Resident individuals can invest without any monetary limit in equity and debt 
instruments of overseas companies listed on a recognised stock exchange which 
have the shareholding of at least 10 per cent in an Indian company listed on a 
recognised stock exchange in India (as on 1st January of the year of the 

Receipt of dis-investment proceeds/Sponsored ADRs/GDRs
Resident shareholders of Indian companies, who offer their shares for 
conversion to ADRs/GDRs under the Scheme of Sponsored ADRs/GDRs can receive the 
sale proceeds in foreign currency or credit it to their RFC (D) Account.

Purchase of air tickets 
Residents may extend hospitality to non-residents towards booking of their air 
tickets or book tickets against prior inward remittance.
Residents may book tickets in India for their visit to any third country sector 
e.g., London/New York through domestic/foreign airlines.

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