For the
convenience of resident individuals and pursuant to its commitment to
simplification of procedures, the Reserve Bank of India has reviewed the
existing application form and documentation for release of foreign exchange
for various purposes.
With a view to
providing hassle free release of foreign exchange, the Reserve Bank has
advised banks dealing in foreign exchange in India that foreign exchange,
upto USD500, should be released on the basis of a simple letter from
resident individuals as long as it contains basic information, namely, name
and address of the applicant, name and address of the beneficiary, amount to
be remitted and the purpose of remittance.
The Reserve Bank
has further clarified that no documents are required, as long as, the amount
of remittance does not exceed USD500 and the payment is being made by a
cheque drawn on the applicant's bank account or by a demand draft.
P.V. Sadanandan
Manager
Press Release: 2002-03/275
