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BANKER's CORNER - FOREX FOR RESIDENTS |
| [ These Rules shall not apply to payments made out of Resident Foreign Currency account (RFC) or Exchange Earner's Foreign Currency account ( EEFC ) ] | |
| Liberalization of Foreign Exchange Laws, bankers are given general permission for foreign exchange release for residents too. Bankers are authorized to release / sell foreign exchange to residents for current account transactions within the limits prescribed byS the Reserve Bank of India. | |
| Forex for : | |
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| PROHIBITED TRANSACTIONS | |
| Various transactions of residents require Reserve Bank of India's approval. | |
| [ These Rules shall not apply to payments made out of Resident Foreign Currency account (RFC) or Exchange Earner's Foreign Currency account ( EEFC ) ] | |
| Foreign Exchange transaction are subject to prior approval of the Reserve Bank of India. However bankers are given general permission for transactions upto prescribed limits. | |
| [ I ] With the enactment of Foreign Exchange Management Act, 1999 withdrawal / purchase of foreign exchange by any person in India as also corresponding of sale of foreign exchange by an authorised dealer / banker is generally allowed if the same amounts to Current Account Transactions. This would generally include travel abroad, medical treatment, subscriptions to periodicals, computer services, professional services and like. | |
| However, certain restrictions are laid down. Enumerated transactions wherein the banks may allow foreign exchange drawal (provided applicant has approval from Ministry / concerned department of Government.) upto prescribed limits. | |