India: Documentation for Foreign Exchange Remittance Eased
Sunnyvale, CA- With an aim to liberalize documentation requirements, the Reserve Bank of India
(RBI) has raised the limit for foreign exchange remittance for miscellaneous purpose without
documentation process to US$25000 from US$5000.
In the year 2002, Authorized Dealers were directed to release up to US$500 or its equivalent for all
transactions upon obtaining a letter from the applicant that includes basic information. In the year
2003, the foreign exchange limit was extended to US$5000 and the same has now been further
increased to US$25000.
The RBI has now made it clear that authorised dealers do not require obtaining Form A-2 in cases
where foreign exchange is bought for current account transaction and if the sum does not surpass
US$25000 or its equivalent. Also, the payment must be done using a cheque drawn on the applicant's
bank account or by a demand draft.
Please call/email for more details.
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