Section 2(j) of FEMA states that ‘Current Account Transaction’ means a transaction other than a capital account transaction. Non-trade current account transaction refers to transactions not related to foreign trade transactions (such as exports and imports of goods and services of a country). Effective 1 June 2015, under the Liberalised Remittance Scheme (LRS) made available by the Reserve Bank of India, resident individuals are allowed to remit up to USD$250,000 per financial year (April-March) for following non-trade current account transactions in terms of Schedule III of FEM (CAT) Amendment Rules, 2015. Release of foreign exchange under LRS is not admissible for travel to and transaction with residents of Nepal and Bhutan.
The list of non-current trade transactions are as under.
- Private visits,
- Remittance by tour operators / travel agents to overseas agents / principals / hotels,
- Business travel,
- Fee for participation in global conferences and specialized training,
- Remittance for participation in international events / competitions (towards training, sponsorship and prize money),
- Film shooting,
- Medical treatment abroad, [Both the patient and his/her attendant are separately eligible for the foreign exchange limit of USD 250000/- (or equivalent) each.]
- Disbursement of crew wages,
- Overseas education,
- Remittance under educational tie up arrangements with universities abroad,
- Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL, etc.
- Employment and processing, assessment fees for overseas job applications,
- Emigration and emigration consultancy fees, [ This amount should only to meet the incidental expenses in the country of emigration. Further, this remittance should not for undertaking any capital account transactions such as overseas investment in government bonds; land; commercial enterprise; etc.]
- Skills / credential assessment fees for intending migrants,
- Visa fees,
- Processing fees for registration of documents as required by the Portuguese / other Governments,
- Registration / subscription / membership fees to International Organisations.
Release of foreign exchange under LRS is not admissible for the following: (i) travel to and transaction with residents of Nepal and Bhutan.(ii) The remittance towards following transactions is not allowed under LRS: (iii) Remittance out of lottery winnings; (iv) Remittance of income from racing/riding etc. or any other hobby; (v) Remittance for purchase of lottery tickets, banned / proscribed magazines, football pools, sweepstakes, etc.; (vi) Remittance of dividend by any company to which the requirement of dividend balancing is applicable (vii) The remitter (i.e. the user) himself/herself is not a holder in the beneficiary account to which the remittance is being made; (viii) The remittance is not intended and will not be used for trading in foreign currency, or, dealing in any virtual currency; (ix) The remittance is not intended and will not be used for any purpose that is prohibited or restricted under the Foreign Exchange Management Act, 1999 or any rules, regulations or guidelines issued under the said Act.
Documents required:
Retail outward remittance application form-A2 cum LRS declaration, PAN card copy is normally required in all cases. AD banks may ask for any other documents as per their bank rules & procedure.
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