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DELEGATION OF POWER TO AUTHORISED DEALERS
- AUTHORISED DEALERS HAVE BEEN GRANTED POWERS
BY THE RESERVE BANK TO RELEASE FOREIGN EXCHANGE FOR TRAVEL ABROAD FOR VARIOUS PURPOSES.
- INTENDING TRAVELERS SHOULD APPROACH THE
AUTHORISED DEALERS FOR EXCHANGE.
- WHERE THE EXCHANGE ASKED IS NOT COVERED BY THE
DELEGATED POWERS THE APPLICATION SHOULD BE FORWARDED BY THE AUTHORISED DEALER TO THE RESERVE BANK FOR APPROVAL.
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CONDITIONS FOR RELEASE OF EXCHANGE
THE TRAVELER MUST BE IN POSSESSION OF A VALID PASSPORT AS WELL AS A TICKET FOR TRAVEL TO THE COUNTRY, AND THE TICKET HAS BEEN ISSUED FOR A JOURNEY COMMENCING NOT LATER THAN SIXTY DAYS FROM THE DATE OF ISSUE OF THE FOREIGN EXCHANGE. EXCHANGE IS TO BE SOLD AGAINST A PERMIT ISSUED BY THE RESERVE BANK WITHIN THE VALIDITY PERIOD. THE EXCHANGE SOLD IS ENDORSED ON THE PASSPORT. EXCHANGE IS SOLD NOT EXCEEDING U.S. $ 10,000 OR ITS EQUIVALENT SUBJECT TO THE TRAVELER'S OVERALL FOREIGN EXCHANGE ENTITLEMENT.
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FEMA 1999 GUIDELINES REGARDING FOREIGN TRAVEL
- DRAWAL OF EXCHANGE FOR TRAVEL TO NEPAL AND BHUTAN
IS PROHIBITED.
- FOR PURCHASE OF FOREIGN EXCHANGE EXCEEDING
- Rs. 50,000 SHOULD BE MADE THROUGH CHEQUE.
- AD CAN GIVE FOREIGN CURRENCY AND COINS UP TO USD 2000
OUT OF THE TOTAL FOREIGN EXCHANGE DRAWN FOR ALL STATES, EXCEPT FOR TRAVEL TO ISLAMIC COUNTRIES, REPUBLIC OF IRAN AND RUSSIAN FEDERATION WHERE THE ENTIRE AMOUNT IS GIVEN.
- FOR MEDICAL TREATMENT USD 58,000
- FOR STUDIES ABROAD CAN DRAW UP TO USD 30,000
CONT….
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FEMA 1999 GUIDELINES REGARDING FOREIGN TRAVEL
OTHER REMITTANCES: GIFT REMITTANCES USD 5,000 IN ONE CALENDAR YEAR. DONATION PER REMITTER UP TO USD 5,000 IN ONE CALENDAR YEAR. CONSULTANCY SERVICES-REMITTANCE TO OVERSEAS CONSULTANTS UP TO USD 1,00,000 PER PROJECT. INTERNATIONAL DEBIT / CREDIT CARD / ATM CARD– RESIDENTS CAN USE THEIR CARDS WHILE ON VISIT ABROAD, WHICH CAN BE PAID OFF THROUGH THE DESIGNATED AD BRANCH UP TO THE ENTITLEMENT OF FOREIGN EXCHANGE.
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UNSPENT EXCHANGE EXCHANGE BROUGHT BACK TO INDIA BY A TRAVELER SHOULD BE SURRENDERED TO AN AUTHORIZED DEALER AGAINST PAYMENT WITHIN 90 AND 180 DAYS FROM THE DATE OF RETURN.
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INTERNATIONAL CREDIT CARDS (ICCs)
- THESE ARE AN INTERNATIONALLY RECOGNIZED INSTRUMENTS
OF PAYMENT IN FOREIGN CURRENCY.
- HELPS TO AVOID THE TROUBLE AND RISK OF CARRYING
FOREIGN CURRENCY . CONDITIONS GOVERNING THE ISSUE :
- ISSUING AUTHORITY: ICCs MAY BE ISSUED BY THE
DESIGNATED BRANCHES OF THE AUTHORIZED DEALERS, AND CERTAIN ORGANIZATIONS IN INDIA.
- APPLICATION: AN APPLICATION TO BE MADE TO CARD
ISSUING BANK / ORGANIZATION IN AN INDIVIDUAL CAPACITY OR AS A REPRESENTATIVE OF ANY FIRM MENTIONING THE AMOUNT OF EXCHANGE CONSIDERED NECESSARY.
- UNDERTAKING: ICCs WILL BE USED IN ACCORDANCE WITH
THE EXCHANGE CONTROL REGULATIONS IN FORCE.
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RELEASE OF FOREIGN EXCHANGE EXCHANGE FOR FOREIGN TRAVEL: FOREIGN EXCHANGE MAY BE RELEASED BY AN AUTHORIZED DEALER AGAINST PERMISSION FROM RESERVE BANK TO INDIAN NATIONALS AND PEOPLE OF NON-INDIAN NATIONALITY PERMANENTLY RESIDENT IN INDIA. EXCHANGE SHOULD BE RELEASED IN FAVOUR OF THE PERSON PERMITTED UNLESS OTHERWISE ENDORSED, WHO IS IN POSSESSION OF VALID PASSPORT AND TICKET FOR PASSAGE. THE RELEASE MUST BE NOT BEFORE A FORTNIGHT FROM THE DATE OF JOURNEY. PAYMENT EQUIVALENT TO Rs. 50,000 OR MORE SHOULD BE RECEIVED THROUGH PERMIT HOLDER’S ACCOUNT.
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RELEASE OF FOREIGN EXCHANGE RELEASE AGAINST BLANKET PERMIT: BLANKET EXCHANGE PERMITS ARE ISSUED UNDER THE BLANKET PERMIT (RESERVE BANK) SCHEME FOR LUMP SUMS ON AN ANNUAL BASIS TO: EXPORTER REGISTERED AS EXPORT HOUSES WITH THE MINISTRY OF COMMERCE WHOSE ANNUAL TURNOVER OF PRODUCTS AMOUNTS TO NOT LESS THAN RS. 15 CRORE. CONSTRUCTION FIRMS AND COMPANIES WHOSE NET ANNUAL FOREIGN EXCHANGE REPATRIATION FROM CONSTRUCTION IS NOT LESS THAN 50 CRORES. CONSULTANCY ORGANIZATIONS WHOSE NET ANNUAL FOREIGN EXCHANGE EARNINGS OF EXPORT OF SERVICES ARE NOT LESS THAN USD 1,00,000
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RELEASE OF FOREIGN EXCHANGE RELEASE AGAINST BLANKET PERMIT: AN AUTHORIZED DEALER MAY RELEASE EXCHANGE UP TO THE EQUIVALENT OF US$ 25,000 AGAINST BLANKET EXCHANGE PERMIT WITHOUT HAVING TO OBTAIN THE RESERVE BANK’S APPROVAL FOR THE PURPOSE : TO MEET THE EXPENSES ABROAD OF REPRESENTATIVES DEPUTED ON EXPORT PROMOTION. TRADE FAIRS / EXHIBITIONS. MARKET STUDIES. COST OF ADVERTISING ABROAD. TO MEET THE EXPENSES OF TRAVEL FOR FINALIZING TECHNICAL COLLABORATIONS etc.
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RELEASE OF FOREIGN EXCHANGE RELEASE UNDER ITC SCHEME: THIS SCHEME IS KNOWN AS THE BLANKET PERMIT (IMPORT TRADE CONTROL) SCHEME, INTRODUCED FOR RELEASE OF FOREIGN EXCHANGE FOR PROMOTIONAL ACTIVITIES TO ‘EXPORT HOUSES’ ON THE BASIS OF THEIR EXPORT PERFORMANCE DURING THE PREVIOUS THREE FINANCIAL
- YEARS. THIS RELEASE IS IN ADDITION TO THE BLANKET
PERMIT ISSUED TO AN EXPORT HOUSE AMOUNTS TO 2.5 PERCENT OF THE f.o.b. VALUE OF THEIR EXPORTS DURING PREVIOUS YEAR.
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RELEASE OF FOREIGN EXCHANGE RELEASE AGAINST STUDENT / TRAINEE PERMIT: EXCHANGE RELEASED, SUCH AS MAINTENANCE, TUITION FEE, INITIAL EQUIPMENT ALLOWANCE, PRE SESSION ALLOWANCE, IF ANY AND IS HANDED OVER TO THE APPLICANT WITH A MEMORANDUM OF INSTRUCTIONS. THE BANK CONCERNED MAY SELL EXCHANGE TO THE STUDENT / TRAINEE. THE FOREIGN EXCHANGE SHOULD BE ISSUED IN THE FORM OF DRAFT PAYABLE TO THE STUDENT OR TO THE FOREIGN UNIVERSITY / INSTITUTION. REMITTANCES AGAINST THE PERMIT MAY BE EFFECTED IN MONTHLY OR QUARTERLY INSTALMENTS.
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TRAVELER'S CHEQUES
- RUPEE TRAVELER'S CHEQUES ENCASHABLE OUTSIDE INDIA
ARE FOREIGN EXCHANGE AND CAN BE SOLD ONLY BY AN AUTHORIZED DEALER.
- AUTHORIZED DEALER MAY CREDIT NON-RESIDENT RUPEE
ACCOUNT OF THEIR OVERSEAS BRANCHES IN REIMBURSEMENT OF THE VALUE OF THE PAID RUPEE CHEQUES.
- AUTHORIZED DEALER MAY APPOINT SELLING AGENTS
OUTSIDE INDIA FOR SALE OF THEIR RUPEE TRAVELER’S CHEQUES VALID FOR NEGOTIATION IN INDIA OR ANYWHERE IN THE WORLD.
- THE SALE OF RUPEE TRAVELER'S CHEQUES SHOULD BE
ENDORSED AND REPORTED TO RESERVE BANK WITH DETAILS, AND TO WHOM ISSUED, AND THE NAMES OF THE COUNTRIES WHERE ENCASHABLE.
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ISSUE OF TRAVELER’S CHEQUES TO FOREIGN TOURISTS / TRANSIT PASSENGERS AUTHORIZED DEALERS MAY ISSUE TRAVELER’S CHEQUES, LETTER OF CREDIT AND DRAFTS TO FOREIGN TOURISTS / TRANSIT PASSENGERS AS WELL AS TO FOREIGN NATIONALS WHO ARE NOT PERMANENTLY RESIDENT IN INDIA AND MAKE REMITTANCES TOWARDS THEIR HOTEL ACCOMMODATIONS, TOUR ARRANGEMENT
- etc. EITHER AGAINST REIMBURSEMENT IN ANY
PERMITTED CURRENCY OR AGAINST SURRENDER OF FOREIGN CURRENCY, DRAFTS OR CHEQUES.
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FOREIGN CURRENCY NOTES AND COINS PURCHASE: AN AUTHORIZED DEALER CAN FREELY PURCHASE FOREIGN CURRENCY NOTES AND COINS FROM ANY PERSON AGAINST PAYMENT IN RUPEES. AN AUTHORIZED DEALER CAN ISSUE ENCASHMENT CERTIFICATES FOR THE PURCHASE, IRRESPECTIVE OF WHETHER THE CURRENCY DECLARATION FORM HAS BEEN SUBMITTED OR NOT. AN AUTHORIZED DEALER MAY IMPORT FOREIGN CURRENCY NOTES TO MEET HIS REQUIREMENTS AGAINST A LICENCE ISSUED TO HIM BY THE RESERVE BANK.
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FOREIGN CURRENCY NOTES AND COINS SALE:
- AN AUTHORIZED DEALER CAN FREELY SELL FOREIGN
CURRENCY NOTES AND COINS TO TRAVELER’S AGAINST PERMITS ISSUED BY RESERVE BANK, AUTHORIZING THE RELEASE OF EXCHANGE TO HIM.
- AN AUTHORIZED DEALER MAY CONVERT, INTO FOREIGN
CURRENCY, RUPEE NOTES HELD BY PERSONS WHO ARE NOT RESIDENT IN INDIA, BUT ARE PASSING THROUGH.
- AN AUTHORIZED DEALER MAY SELL FOREIGN CURRENCY
NOTES AND COINS FREELY TO OTHER AUTHORIZED DEALERS AND TO AUTHORIZE MONEY CHANGERS WHEN THEY FIND THAT THE DISPOSAL OF SUCH NOTES AND COINS EXCEPT BY SALE TO OTHERS IS NOT PRACTICABLE.
