Sunnyvale, CA -- (SBWire) -- 06/20/2012 --With an aim to liberalize documentation requirements, the Reserve Bank of India (RBI) has raised the limit for foreign exchange remittance for miscellaneous purpose without documentation process to US$25000 from US$5000.
In the year 2002, Authorized Dealers were directed to release up to US$500 or its equivalent for all transactions upon obtaining a letter from the applicant that includes basic information. In the year 2003, the foreign exchange limit was extended to US$5000 and the same has now been further increased to US$25000.
The RBI has now made it clear that authorised dealers do not require obtaining Form A-2 in cases where foreign exchange is bought for current account transaction and if the sum does not surpass US$25000 or its equivalent. Also, the payment must be done using a cheque drawn on the applicant's bank account or by a demand draft.
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India: Documentation for Foreign Exchange Remittance Eased