RBI/2011-12/184
A.P. (DIR Series) Circular No. 20
September 16, 2011
To
All Banks Authorised to Deal in Foreign Exchange
Madam / Sir,
Meeting of Medical expenses of NRIs close
relatives by Resident Individuals
Attention of Authorised Dealer (AD) banks is invited to para 2 of the
Notification No. FEMA 16/RB-2000 dated May 3, 2000 viz. Receipt from and Payment
to, a Person Resident Outside India, as amended from time to time, in terms of
which a resident may make payment in rupees towards meeting expenses on account
of boarding, lodging and services related thereto or travel to and from and
within India of a person resident outside India who is on a visit to India.
- The Committee to review the facilities for individuals under the
Foreign Exchange Management Act (FEMA), 1999 has in its Report recommended
that the ambit of
FEMA Notification No.16/RB-2000 dated May 3, 2000 may be
expanded to include permission to residents to bear medical expenses of
visiting NRIs/PIOs.
- The extant position has been reviewed and it has been decided that where
the medical expenses in respect of NRI close relative (relative as defined
in Section 6 of the Companies Act, 1956) are paid by a resident individual,
such a payment being in the nature of a resident to resident transaction may
be covered under the term “services related thereto” under Regulation 2(i)
of Notification No. FEMA 16 /2000- RB dated May 3, 2000, ibid.
- AD banks may bring the contents of this circular to the notice of their
constituents and customers concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)
and are without prejudice to permissions/approvals, if any, required under
any other law.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager In-Charge