RBI Replies (23.11.2006)

04/11/2006

The Governor,
Reserve Bank of India,
Mumbai.

Respected Sir,

Sub: Anomalies in Mid-term Review of Annual Policy for 2006-07.

I take this opportunity to congratulate you for presenting once again a dynamic policy, which will give further fillip to the momentum of economic growth, while simultaneously reining the inflationary pressures. Sir, the marathon presentation will further encourage large and small entrepreneurs in their efforts for growth and development of their trade and industry, which in turn will boost the growth of the Nation.

Sir, the highlights amongst others proposes two changes, namely :

- Resident individuals would be free to remit up to US $ 50,000 per financial year as against the earlier limit of US $ 25,000 -

- Lock-in period for sale proceeds of the immovable property credited to the NRO account to be eliminated, provided the amount being remitted in any financial year does not exceed US $ one million -

Both the proposals mention / link the limits to a "calendar year", whereas the original regulations stipulated and have linked the limits to a "financial year" as reflected in part of copy posted herein.

Possibly, the intention is to delink the limits to a "calendar year", and now link the same to a "financial year". But if it is not so, I suggest that appropriate provisions / changes be made linking the limits of US$ 50,000 and US$ 1 mn, respectively, to "calendar year".

I once again take this opportunity to congratulate you and wish you the very best in all your endeavors for taking forward the economy and the Nation into a new era of progress and prosperity.

With respectful regards,

Sincerely,    

RAJESH H DHRUVA
Chief Executive
femaonline.com
Cell : (0) 98240 98240

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RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT  
CENTRAL OFFICE  
MUMBAI – 400 001

January 31, 2004

RBI/2004/36
A.P.(DIR Series) Circular No.62
To
All Authorised Dealers in Foreign Exchange

Madam / Sirs,

Liberalised remittances facilities to NRIs/PIO and Foreign Nationals

·   
Amendments to FEMA Regulations
Clarificatory Guidelines

Attention of Authorised Dealers is invited to paragraph 4 of A.P.(DIR Series) Circular No.67 dated January 13, 2003, permitting them to allow remittances upto USD 1 million, per calendar year, out of balances held by NRIs/PIO/Foreign Nationals (including retired employees or non-resident widows of Indian citizens) in NRO accounts/sale proceeds of assets, on production of the following documents :

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RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT  
CENTRAL OFFICE  
MUMBAI – 400 001

February 4, 2004

RBI/ 2004/39
A.P. (DIR Series) Circular No. 64
To
All Authorised Dealers in Foreign Exchange

Madam/Sirs,  

Liberalised Remittance Scheme of USD 25,000 for Resident Individuals

As you are aware, we have been closely monitoring the macro-economic developments of the country and initiating suitable policy changes in tune with the changing scenario. As a step towards further simplification and liberalization of the foreign exchange facilities available to residents, it has been decided that resident individuals may freely remit upto USD 25,000 per calendar year for any purpose for which a Scheme has been formulated as detailed below: