Foreign Exchange Management Act

Dec 23, 2003

The Reserve Bank of India has today decided that residents will be able to make remittances for miscellaneous purposes upto USD 5000 without any documentation formalities including submission of Form A2.

In a circular issued to authorised dealers in foreign exchange today, the Reserve Bank said that with a view to further liberalising the availability of foreign exchange to residents without documentation formalities, it has revised the limit for this purpose from USD 500 to USD 5000 with immediate effect. It is clarified that authorised dealers need not obtain any documents from residents except a simple letter stating the basic information about the applicant viz., his name and address, name and address of the beneficiary, amount to be remitted and the purpose of remittance as long as exchange is being purchased for a permissible current account transaction and the amount does not exceed USD 5000 or its equivalent and the payment is made by a cheque drawn on the applicant's bank account or by a demand draft.