The Central Bank also said that under the Liberalised Remittance Scheme (LRS) for resident individuals, funds could be used to buy shares of both listed and unlisted overseas companies. (Agencies)
The RBI had on August 14 reduced the limit of remittances to USD 75,000 from USD 2 lakh to check the outward flow of capital and contain the sliding value of the rupee.
According to the RBI, only gifts and donations were included under the annual LRS limit of USD 75,000. Expenses on education and medical treatment purposes would be independent
of the limit.
"A resident individual can make remittances for meeting expenses for medical treatment abroad up to the estimate from a doctor in India or hospital/doctor abroad under general
permission...", the RBI said in a clarification, adding that these would be above and over the LRS limit.
An individual will also be allowed to make remittances up to USD 25,000 for maintenance expenses of a patient going abroad for medical treatment or check-up or for an attendant
accompanying a patient going abroad for treatment or check-up.
For overseas studies, individuals would be allowed remittances of as much as USD 1 lakh over and above the annual LRS limit of USD 75,000. Among the steps announced last month, the RBI had said the use of LRS for acquisition of immovable property outside India directly or indirectly would not be allowed.
With regard to investments in immovable property abroad acquired under instalment basis, the RBI today said, "Resident individuals are permitted to make remittances for acquiring
immovable property within the annual limit of USD 75,000 for already contracted cases (contracts entered into on or before August 14, 2013)."
Clarifying its position on current account transactions, the RBI said, "Notwithstanding the revised guidelines and reduction in the LRS limit, these guidelines will not affect genuine transactions."
The Central Bank also said that under the Liberalised Remittance Scheme (LRS) for resident individuals, funds could be used to buy shares of both listed and unlisted overseas companies.