Regulation 4 sub-Regulations (c) and (d) to be inserted after sub-Regulation (b)

(c) No person resident in India shall undertake any capital account transaction which is not permissible in terms of Order S.O. 1549(E) dated April 21, 2017, as amended from time to time, of the Government of India, Ministry of External Affairs, with any person who is, a citizen of or a resident of Democratic People’s Republic of Korea, or an entity incorporated or otherwise, in Democratic People’s Republic of Korea, until further orders, unless there is specific approval from the Central Government to carry on any transaction.

 (d) The existing investment transactions, with any person who is, a citizen of or resident of Democratic People’s Republic of Korea, or an entity incorporated or otherwise in Democratic People’s Republic of Korea, or any existing representative office or other assets possessed in Democratic People’s Republic of Korea, by a person resident in India, which is not permissible in terms of Order S.O. 1549(E) dated April 21, 2017, as amended from time to time, of the Government of India, Ministry of External Affairs shall be closed/liquidated/disposed/settled within a period of 180 days from the date of issue of this Notification, unless there is specific approval from the Central Government to continue beyond that period.

Regulation 4, in sub-regulation (b), the existing Explanation (i) shall be substituted by the following namely:

“(i) For the purpose of this regulation, “real estate business” shall not include development of townships, construction of residential /commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014”.

In Regulation 4, in sub-regulation (a), for the existing provisos, the following shall be substituted:-

In Regulation 4, in sub- regulation (b),

(i) the existing ‘explanation’ shall be numbered as (i) and

(ii) the following new explanation shall be added ,namely:

In regulation 4, in sub-regulation (a), for the provisos, the following shall be substituted:

“PROVIDED that –

(a) subject to the provisions of the Act or the rules or regulations or directions or orders made or issued there under, a resident individual may draw from an authorized person foreign exchange not exceeding USD 125000 per financial year or such amount as may be decided by Reserve Bank from time to time for a capital account transaction specified in Schedule I.

Explanation: Drawal of foreign exchange by resident individuals towards remittances of gift or donations as per item Nos. 3 and 4 of Schedule III to Foreign Exchange Management (Current Account Transactions) Rules, 2000 dated 3rd May, 2000, as amended from time to time, shall be subsumed within the limit under proviso (a) above.

(b) Where the drawal of foreign exchange by a resident individual for any capital account transaction specified in Schedule I exceed USD 125000 per financial year, or as decided by Reserve Bank from time to time, as the case may be, the limit specified in the regulations relevant to the transaction shall apply with respect to such drawal.

PROVIDED FURTHER that no part of the foreign exchange of USD 125000 drawn under proviso (a) shall be used for remittance directly or indirectly to countries notified as non-co-operative countries and territories by Financial Action Task Force (FATF) from time to time and communicated by the Reserve Bank of India to all concerned."

 In regulation 4, in sub-regulation (a), for the provisos, the following shall be substituted :-

Provided further that no part of the foreign exchange of USD 75000 or as decided by Reserve Bank from time to time as the case may be, drawn under proviso (a) shall be used for remittance directly or indirectly to countries notified as non-co-operative countries and territories by Financial Action Task Force (FATF) from time to time and communicated by the Reserve Bank of India to all concerned."

In regulation 4, sub-regulation (a),  the provisos, shall be substituted by the following provisos  namely:-

"Provided that -

(a) subject to the provisions of the Act or the rules or regulations or directions or orders made or issued thereunder, a resident individual may, draw from an authorized person foreign exchange not exceeding USD 50,000 per financial year with effect from December 20, 2006, USD 100,000 per financial year with effect from May 8, 2007 and USD 2,00,000 per financial year with effect from September 26, 2007, for a capital account transaction specified in Schedule I.

Explanation: Drawal of foreign exchange by resident individuals towards remittances of gift or donations as per item Nos. 3 and 4 of Schedule III to Foreign Exchange  Management (Current Account Transactions) Rules, 2000 dated 3rd May, 2000 as amended from time to time, shall be subsumed within the limit under proviso (a) above ;

(b) where the drawal of foreign exchange by a resident individual for any capital account transaction specified in Schedule I exceeds USD 50,000 or USD 100,000 or USD 200,000, as the case may be, per financial year, the limit specified in the regulations relevant to the transaction shall apply with respect to such drawal :

Provided further that no part of the foreign exchange of USD 50,000 or USD 100,000 or USD 200,000, as the case may be, drawn under proviso (a) shall be used for remittance directly or indirectly to countries notified as non-co-operative countries and territories by Financial Action Task Force (FATF) from time to time and communicated by the Reserve Bank of India to all concerned."

After Regulation 4 (a), the following proviso shall be inserted namely ;

 " Provided that—

(a)   subject to the provisions of the Act or the rules or regulations or directions or orders made or issued thereunder, a resident individual may draw from an authorized person foreign exchange not exceeding. US D 25,000 per calendar year for a capital account transaction specified in Schedule I;

(b)   where the drawal of foreign exchange by a resident individual for any capital account transaction specified in Schedule I exceeds US $ 25,000 per calendar year, the limit specified in the regulations relevant to the transaction shall apply with respect to the drawal.

Provided further that no part of the foreign exchange of US $ 25,000 drawn under clause (a) of the first proviso shall be used for remittance directly or indirectly to countries notified as non-cooperative countries and territories by Financial Action Task Force (FATF) from time to time and communicated by the Reserve Bank of India to all concerned."