RBI simplifies current account transactions.

To simplify current account transactions, the Reserve Bank of India has announced another tranche of transactions which will henceforth not require RBI approval before being effected. 
 
Such transactions include various kinds of remittances, commission to agents for acquiring property abroad and short term credit to overseas offices of Indian companies. 
 
According to a RBI notification, these remittances will include those by artists for advertisements on foreign television, where export earnings are less than Rs 10 lakh, of royalty and payment of lump sum fees, and where agreements have not been registered with the RBI. 
 
However, remittances under agreements not registered with the RBI have to be in conformity with the norms prescribed under the Schedule II of the FEMA (Current Account Transactions) Rules 2000. 
 
Commissions to agents will include the amount to be paid abroad for sale of residential plots for amounts up to $25,000 or 5 per cent of the inward remittance, whichever is higher. 
 
It has also been clarified that remittances for securing personal health insurance from a company abroad will also no longer require prior approval of the Government of India. 
 
However, remittances for use of trademark/franchise would continue to require prior approval of the Reserve Bank. 


Source :  Business Standard