NonResident Indians can now send 30 remittances every year as per a circularissued by the RBI in the month of June. This is an attempt by the RBI to boostforeign currency inflow and check the fall of the rupee.
Thisis an increase from the 12 transfers allowed earlier through the Money TransferService Scheme. However, only personal remittances such as remittancestowards family maintenance and remittances favouring foreign tourists visitingIndia are permissible.
“These directions have beenissued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act,1999 (42 of 1999) and are without prejudice to permissions/approvals if any,required under any other law,” said the RBI in its circular.
However there is a cap of $ 2,500that an individual can transfer under this scheme. Amounts upto Rs 50,000 maybe paid in cash. But, amounts exceeding this limit need to be paid bycheque/demand draft/P.O. etc. or credited directly to the beneficiary’s accountonly.
Analysts said that the RBI’sdecision to increase remittances will help raise foreign exchange reserves. TheRBI circular has directed the agents to bring this to the notice to sub-agentsand ensure that they adhere to the guidelines.
