Transactions
All transactions are to be through an authorised person i.e. Authorised Dealer or Full Fledged Money Changer. No person can make
any payment to or for the credit of any person residing outside India in any manner and he shall not receive any payment by order
or on behalf of any person, resident outside India, except through the authorised person.
Transactions can be classified in two categories i.e. current account and capital account.
Current Account Transactions
These transactions mainly related to import and export of goods and services. There are four categories of these transactions:
a prohibitory category which include transactions with Nepal and Bhutan, remittance of earnings from lottery/racing etc.,
commission on exports under the rupee state credit route or exports against equity in a joint venture abroad etc.
b schedule II transactions, requiring government approvals.
c transactions in schedule III where the authorised dealers (ADs) can allow remittance up to the prescribed limits and RBI
permission requirement will be for remittance exceeding the limit.
d all other current account transactions for which the ADs can allow remittance without monetary limit. The exporters and
importers can get most of their transactions through the ADs and there will be fewer cases for permission from RBI.
Capital Account Transactions as notified by RBI under FEMA
a investment in foreign securities,
b raising foreign currency loans in India and abroad
c transfer of immovable property outside India
d issuing guarantees in favour of a resident outside India
e taking out an insurance policy from an insurance company outside India.
f sale and purchase of foreign exchange derivatives in India and abroad and commodity derivatives abroad by an Indian resident.
g maintenance of foreign currency accounts in India and abroad by an Indian resident,
h export, import and holding of currency/currency notes, loans and overdrafts/borrowing from a person residing outside India,
i loans and overdrafts to a person residing outside India and remittance outside India of capital assets of an Indian residents.
j investment in issue of security by a body corporate or an entity in India and investment by way of contribution to the capital of a
firm or a proprietorship concern or an association of persons in India.
k Acquisition and transfer of immovable property in India,
1 issuing guarantee in favour of or on behalf of and Indian resident,
m deposits between an Indian resident and a person residing outside India
n maintenance of foreign currency a/cs in India and remittance outside India of capital assets in India of a person residing outside
India.
All transactions are to be through an authorised person i.e. Authorised Dealer or Full Fledged Money Changer. No person can make
any payment to or for the credit of any person residing outside India in any manner and he shall not receive any payment by order
or on behalf of any person, resident outside India, except through the authorised person.
Transactions can be classified in two categories i.e. current account and capital account.
Current Account Transactions
These transactions mainly related to import and export of goods and services. There are four categories of these transactions:
a prohibitory category which include transactions with Nepal and Bhutan, remittance of earnings from lottery/racing etc.,
commission on exports under the rupee state credit route or exports against equity in a joint venture abroad etc.
b schedule II transactions, requiring government approvals.
c transactions in schedule III where the authorised dealers (ADs) can allow remittance up to the prescribed limits and RBI
permission requirement will be for remittance exceeding the limit.
d all other current account transactions for which the ADs can allow remittance without monetary limit. The exporters and
importers can get most of their transactions through the ADs and there will be fewer cases for permission from RBI.
Capital Account Transactions as notified by RBI under FEMA
a investment in foreign securities,
b raising foreign currency loans in India and abroad
c transfer of immovable property outside India
d issuing guarantees in favour of a resident outside India
e taking out an insurance policy from an insurance company outside India.
f sale and purchase of foreign exchange derivatives in India and abroad and commodity derivatives abroad by an Indian resident.
g maintenance of foreign currency accounts in India and abroad by an Indian resident,
h export, import and holding of currency/currency notes, loans and overdrafts/borrowing from a person residing outside India,
i loans and overdrafts to a person residing outside India and remittance outside India of capital assets of an Indian residents.
j investment in issue of security by a body corporate or an entity in India and investment by way of contribution to the capital of a
firm or a proprietorship concern or an association of persons in India.
k Acquisition and transfer of immovable property in India,
1 issuing guarantee in favour of or on behalf of and Indian resident,
m deposits between an Indian resident and a person residing outside India
n maintenance of foreign currency a/cs in India and remittance outside India of capital assets in India of a person residing outside
India.
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