Remittance of foreign Exchange : for bank promotion exam

Remittance  of foreign Exchange

Broadly it is divided into two part

1.  Outward Remittance :

ü Each resident individual can remit abroad up to US $ 2.5 Lakh for any purpose excluding  lottery and speculation.

ü Amount can be remitted for Capital account and Current Account transaction.

e.g. Education, Medical treatment, Private travel , Business travel , Immigration etc. Purpose of immovable properties, gift ,donation etc.

ü In case of Education, Medical treatment, or immigration if estimate is given more than US $ 2.5 Lac can be remit.

ü Bank will not grant the loan for Capital account transaction.

ü For exchange equivalent to US $3000 can be released as currency but more than US $3000 by cheque or DD.

ü For exchange equal to Rs.50000/- can be released as a cash and more than Rs.50000/- by debiting account or against cheque.

2.  Inward Remitance :

ü There is no restriction on bringing Foreign exchange in India.

ü If foreign exchange is more than US $5000 or foreign currency  cheque or DD more than US $10000. It should be declare to custom on currency declaration form.

ü An individual retain upto US $2000 ( No limit on coins) balanced amount is surrendered to authorised dealers within 180 days of  arrival in India.

ü Indian Rupees can be imported upto Rs.25000/.

ü Foreign exchange can’t be taken to or brought from Nepal & Bhutan.

ü Indian currency Note of 500 & 2000 can be taken up to Rs.25000/ and balance amount is denomination of 100 or below.