New Delhi: Amidst the rapid decline in value of rupee against the dollar, the Reserve Bank of India (RBI) has decided to liberalise the existing rules of Foreign Exchange Management.

The new foreign exchange rules allow local residents to gift or lend in cash up to USD 200,000 per fiscal year to close relatives living overseas. The limit on gifts of shares, security and debentures which can be given to relatives or any other foreigner has been doubled to USD 50,000 from USD 25,000 a year.
Besides, the country’s apex bank has decided to further simplify the foreign exchange facilities for individuals.

As stated in the notice issued by the Reserve Bank, a non-resident Indian (NRI) can take gifts in the form of cheques or can get the cash directly transferred through electronic facility. Also, the relative in India can also bear the cost of any treatment/ surgery undergone by NRI in the country. 

RBI’s notification also stated that non-resident Indians (NRIs) can now also become joint account holders with residents in domestic accounts, while residents can join overseas relatives in their foreign non-resident accounts. The approval is also for accounts opened with the purpose of export.

While presenting the Annual Monetary Policy for 2011-12, the Governor of RBI has announced the setting up of a Committee to identify areas for streamlining and simplifying the procedures under Foreign Exchange Management Act, 1999.