Definition of NRI changed from purpose to residence
From Criminal law to Civil Law
Less punishment – No Imprisonment
Compounding powers to RBI
Less stringent & more business friendly
All colored text is relevant for examination
Foreign Exchange Market in India Regulator: Reserve Bank of India Regulation: Foreign Exchange Management Act, 1999 Authorised Dealers, Money changers Buyers and sellers: exporters, importers, individuals, Corporates, FIIs, Non-Residents, NRIs etc. Tier-I Tier - II Tier-III
Remittances which need prior approval from the dealing ministry / department of GoI and permitted up to the amounts as mentioned in the approval letter –
Cultural tours , Advertisement in foreign print media , Freight of vessel charted by a PSU , Payment for import by a Govt, dept. or PSU on c.i.f. basis , Multi modal transport operators making remittance to their agents abroad , hiring of transponders by TV channels , ISPs , Remittances under technical collaboration agreements etc.
Transactions needing RBI approval for amounts exceeding delegated powers of ADs
– travel , gift , donation , employment , emigration , maintenance , medical expenses exceeding the estimates , higher studies exceeding the estimates, commission to agents for sale of flats etc. in India , consultancy fees ,pre incorporation expenses.
Limits upto which ADs can release foreign Exchange Sl no Transaction Limit in US $ 1 Private visit USD 10,000 per financial year 2 Business travel, Conference, Training USD 25,000 per trip 3 Medical treatment USD 100,000 or its equivalent on self declaration basis 4 Higher studies USD 1,00,000 per academic year
Limits upto which ADs can release foreign Exchange Sl.no. Transaction Limit 5 Employment Upto USD 1,00,000 6 Emigration Upto USD 1,00,000 7 Gift/donation USD 5,000 per remitter/donor per annum. 8 Maintenance of close relatives abroad – USD 1,00,000 per recipient 9 Cultural as sanctioned by GoI 10 LRS USD 2,00,000 per financial year
(a) travellers proceeding to Iraq and Libya - not exceeding USD 5000 or its equivalent;
(b) travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States - entire foreign exchange released in the form of foreign currency notes or coins.