Chapter 8 of the Exchange Control Manual delat with the ceilings
pertaining to the foreign travel and Miscellaneous remittances.
These rules even prescribed certain forms for making the remittances
requests. This Chapter was now amended wef 16/5/2000 wherein most of
these rules and forms were amended / omitted. New set of rules are
framed regulating these remittances under the title Current Account
Transactions. Current Account transactions are defined to include
all the non capital transactions including payments arising in
course of foreign trade, other current business, servicesand short
term credit facilities , payment of interest due on loans, payments
for living expenses of the parents, spouse, children living abroad,
payment for travel, education, and medical care of the parents,
spouse and children.
these new rules, various restrictions/ prohibitions are provided for
these different types of transactions.A list of these are furnished
below. All other transactions shall be freely permitted to be
Those tranactions which are strictly prohibited such as
Foreign exchange for trips to Nepal and Bhutan
Transactions specified in Schedule I. ( same as mentioned in ans. 2)
Those transactions which are permitted with the prior approval of
the Central Govt.
these transactions are :
Cultural tours, advertisement abroad by any state Govt. or PSU,
remittance of freight of vessel chartered by a PSU, payment of
hiring charges of the transponders etc.
Those transactions where prior permission of the RBI is necessary
remittances by artists, release of FX exceeding USD 5000- for
undertaking private trips abroad ,gift remittances exceding USD
5000/- per beneficiary per annum, Donation excceding USD 5000/- per
annum per beneficiary, Exchange facility excceding USD 5000/- for
persons going abroad for employment etc.
with respect to the documentation: Now RBI has no more prescribed
the relevant forms /documents which an authorised dealer shall
collect from the applicant . Therefore all the documents showing the
properness/ genuineness of the FX transactions shall be retained .