indirectly by/ or to ineligible entities and that the remittances are made in accordance with
the instructions in this regard.
There is also a reporting requirement on the Authorized Dealers. The remittances made
under this scheme will be reported in the RReturn in the normal course. They may also
keep on record on a dummy Form A2, in respect of remittances exceeding USD 500. They
must also furnish a quarterly return, which contain the information on the number of
applicants and total amount remitted to the Chief General Manager, External Payment
Division, Foreign Exchange Department, Reserve Bank Of India, Central Office,
The RBI announced on February 4, 2004 that resident individuals may freely remit upto
$25,000 per annum for any purpose resulted in several banks placing advertisements
seeking deposits abroad from residents. The RBI has therefore issued another circular on
March 18, 2004 which states that “all banks, both Indian and foreign, including those not
having an operational presence in India, should seek prior approval from RBI for the
schemes being marketed by them in India to residents either for soliciting foreign
currency deposits for their foreign/ overseas branches or for acting as agents for overseas
mutual funds or any other foreign financial services company.”
Goods by way of gifts
Export of goods by way of gifts is permissible subject to a declaration by the exporter that
the value does not exceed Rs. 5 lakhs.
Remittance for securing Insurance for Health from a Company Abroad
Remittance may be made freely for payment for securing insurance for health from a
Remittance by Artiste
ADs may freely allow remittances by artistes e.g. wrestler, dancer, entertainer, etc.
Remittances for Tour Arrangements, etc.
Authorized dealers may remit foreign exchange upto a reasonable limit, at the request of a
traveler towards his hotel accommodation, tour arrangements, etc., in the countries
proposed to be visited by him, provided it is out of th