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June 2012

A.P. (DIR Series) Circular No. 118, dated 7-5-2012 — Release of foreign exchange for miscellaneous remittances.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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Presently, up to INR307,284 or its equivalent can be remitted abroad for all permissible transactions on the basis of a simple letter from the applicant containing the basic information, viz., names and the addresses of the applicant and the beneficiary, amount to be remitted and the purpose of remittance.

This Circular has increased this limit from INR307,284 or its equivalent to INR1,536,419 or its equivalent. No documents, including Form A-2, except a simple letter containing basic information as stated above is required provided the conditions mentioned below are fulfilled:

 (a) Foreign exchange is being purchased for a permitted current account transaction.

(b) Amount does not exceed INR1,536,419 or its equivalent.

(c) Payment is made by a cheque drawn on the applicant’s bank account or by a Demand Draft.

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