RESERVE BANK OF INDIA
Foreign Exchange Department
Central Office
Mumbai - 400 001
A. P. (DIR Series) Circular No.118
May 07, 2012
To
All Authorised Dealers in Foreign Exchange
Madam/ Sir,
Release of Foreign Exchange for Miscellaneous Remittances
Attention of Authorised Dealers in foreign exchange is drawn to A.P.(DIR
Series)
Circular No. 16 dated September 12, 2002, in terms of which the Authorised
Dealers were advised to release amounts up to USD 500 or its equivalent for all
permissible transactions on the basis of a simple letter from the applicant
containing the basic information, viz., names and the addresses of the applicant
and the beneficiary, amount to be remitted and the purpose of remittance. It was
clarified in the circular that Authorised Dealers need not insist upon
submission of
A2 Forms in such cases. The limit was subsequently enhanced to USD 5000 in
terms of the
A.P.(DIR Series) Circular No. 55 dated December 23, 2003.
- With a view to further liberalizing the documentation requirements, the limit
for foreign exchange remittance for miscellaneous purposes without
documentation formalities, has been raised from USD 5000 to USD 25000 with
immediate effect.
- It is clarified that Authorised Dealers need not obtain any document,
including Form A-2, except a simple letter as stated above as long as the
foreign
exchange is being purchased for a current account transaction (not included in
the
Schedules I and II of Government Notification on Current Account Transactions),
and the amount does not exceed USD 25000 or its equivalent and the payment is
made by a cheque drawn on the applicant's bank account or by a Demand Draft
AD banks shall prepare dummy A-2 so as to enable them to provide purpose of
remittance for statistical inputs for Balance of Payment.
- Authorised Dealers may bring the contents of this circular to the notice of
their
constituents concerned.
5. 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,
(Rudra Narayan Kar)
Chief General Manager
RBI/2011-12/537