Foreign Currency Accounts for Exporters: FEMA 2025 Update
Indian exporters are now permitted to open and maintain Foreign Currency Accounts (FCAs) outside India, including in IFSC Banking Units, for receipt of full export value and advance remittances. The Seventh Amendment to the 2015 Regulations, issued in October 2025, clarifies repatriation timelines and defines the permissible use of funds, thereby enhancing flexibility and efficiency…
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Remittance of Salary Outside India — FEMA, LRS and Tax Compliance Guide for 2025
Remitting salary from India to an overseas account is permissible, but must comply with FEMA, RBI’s Liberalised Remittance Scheme (LRS), bank KYC/purpose documentation, and income-tax TCS rules that apply to outward remittances depending on purpose and threshold limits. Resident individuals can generally use LRS up to USD 250,000 per financial year for permitted current account…
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International Flight Baggage Rules
International flight baggage rules vary by airline, but most follow similar standards for both checked and cabin baggage. Understanding these limits helps travellers avoid last-minute surprises at the airport. Checked Baggage• Weight and Size: The standard limit for a single checked bag is usually 23 kg (50 lbs), with total dimensions (length + width +…
Read article Carrying Indian and Foreign Currency Abroad: Rules and Limits
Introduction When travelling abroad, it is essential for Indian residents to understand the foreign exchange limits and RBI guidelines on carrying cash and currency. Both India and the destination country impose restrictions on the amount of Indian and foreign currency that can be carried in cash. Knowing these currency carrying rules not only helps you…
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Swaps: Definitions, Mechanics, Valuation, and Interest Rate Applications
A swap is an over-the-counter derivative in which two parties agree to exchange cash flows based on specified terms for a defined period, typically without exchanging principal and with cash flows computed on a notional amount. Swaps allow participants to transform the nature of their assets or liabilities (e.g., from floating to fixed interest) and…
Options: Definitions, Pricing, and Interest Rate Applications
An option is a derivative contract that grants the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price on or before a stated expiration date, in exchange for a premium paid to the seller (writer) of the option. Option terminology Call option A call option…
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