In line with the existing Liberised Remittance Scheme (LRS) in India, any resident individual including a minor is free to remit up to US Dollars 2,50,000 or its equivalent in one financial year for overseas education, traveling abroad for business and private visits, to patients for medical treatment, or to a person for accompanying as…
The Ministry of Finance on May 16 notified that the Foreign Exchange Management (Current Account Transactions) Rules 2000 amended to include international credit card payments under LRS. Under LRS a resident can remit money abroad up to a maximum of USD 2.50 lakh per annum without the authorization of RBI. According to the notification, the…
The Reserve Bank of India (RBI) today issued an advisory to banks and other RBI-regulated entities, underlining the need to take steps to ensure a complete transition away from the London Interbank Offered Rate (LIBOR) from July 01, 2023. The key messages in the advisory include: Banks should ensure no new transactions are linked to…
Edited and updated on 12.05.2023 ”LIBOR”, once labeled as the world’s most important benchmark was discredited because of the 2008 financial crisis when authorities in the United States and Britain found traders had manipulated it to make a profit that sparked an investigation by Britain’s Financial Services Authority (FSA). The LIBOR rigging scandal of 2008…
Certain instruments like International Debit Cards/Store Value Cards/Charge Cards/Smart Cards or any other instrument that can be used in India to create a financial liability, as ‘currency’. The banking regulator Reserve Bank of India observed that a few Authorised Persons are levying certain fees/charges, which are payable in India on such instruments, in foreign currency.…
RBI on Wednesday (April 26) decided to amend the directions under para 2 (ii) of the A.P. (DIR Series) Circular dated February 16, 2021. As per the revised amendment, Resident Individuals may also open a Foreign Currency Account (FCA) in IFSCs, for making the above permissible investments under Liberalised Remittance Scheme (LRS). Hence, the extant…
The Non-Resident Indians (NRIs), Persons of Indian Origin (PIO), or Overseas Citizens of India (OCI) may want to sell their property if they do not have a plan to visit India or maintain the property in India. Any property residential or commercial can be sold to a resident Indian whether purchased, inherited, or gifted. However,…
Banks extend export credits to their customers in two stages viz. (i) pre-shipment stage and (ii) post-shipment stage. The first stage of the loan is the pre-shipment stage where the loan is released for procuring, Packing processing (where necessary), manufacturing, and finally for packing of goods. The loans and advances so provided by the banks,…
When an entity taking advantage of two or more markets of a price difference goes for simultaneous purchase and sale of a financial instrument on different markets. This is called Arbitrage. The trader involved in arbitrage makes a profit from the difference in prices at different markets. In our previous article ‘WHY ARBITRAGE FUNDS RANK…
Export documentation and procedures upon prevalent statutes/ amendments and country-specific requirements related to exporting from India are explained in this post. Definition of export: Export means selling goods or services by a person or a company of one country to a buyer in another country. The supplies made to IBRD/IDA/ADB aided projects are termed as…