The Reserve Bank of India (‘RBI’) has notified amendment to the Foreign Exchange Management (Current Account Transactions) Rules to specify an aggregate limit of USD 2,50,000 for remittance in foreign currency for certain current account transactions, inter-alia, for private visits to any country (except Nepal and Bhutan), gifts or donations, going abroad for employment, emigration, business travels, or medical treatment abroad, etc.
Remittances in foreign currency by an individual for the following current account transactions shall be made within limit of USD 2,50,000:
a) Holiday/Private Visits abroad
b) Business trip
c) Gifts/Donation
d) Employment or education
e) Remittance for Maintenance of a close relative abroad
f) Medical treatment abroad
g) Emigration facilities
Further, it is provided that an individual can avail of foreign exchange facility of an amount exceeding the limits as prescribed above under the Liberalized Remittance Scheme (‘LRS’) for the purpose of emigration, education, business travel, medical treatment, etc.
However, the amount so remitted by individual under the LRS shall be reduced from the USD 250,000 by the amount so remitted.