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Resident individuals can remit up to $25,000

MUMBAI, FEB. 4. The Reserve Bank of India has formulated a remittance scheme, allowing resident individuals to remit up to $25,000 per calendar year for current or capital account transaction or a combination of both.

The scheme will come into operation with immediate effect, an RBI press release said here today.

Under this facility, residents will be free to acquire and hold immovable property or shares or any other asset outside the country without prior approval of the RBI.

Individuals will also be able to open, maintain and hold foreign currency accounts with a bank outside India for making remittances under the scheme without prior approval of the central bank, it added.

The foreign currency account may be used for putting through all transactions connected with or arising from remittances eligible under this scheme, it added.

The facility under the scheme is in addition to those already available for private travel, business travel, gift remittances, donations, studies and medical treatment.

However, this facility cannot be used for remittances for any current account transaction specifically prohibited or restricted under FEMA such as purchase of lottery/sweep stakes and proscribed magazines, the RBI added.

The RBI said remittances cannot be made directly or indirectly under this scheme to Bhutan, Nepal, Mauritius or Pakistan as well as to countries identified by the Financial Action Task Force (FATF) as "non co-operative countries'' and territories, or to those high risk individuals and entities advised separately by the central bank to banks.

Applicants will be required to furnish their PAN number and confirm to authorised dealer bank, that the funds being remitted belong to them, it said.

Authorised dealers are also expected to carry out due diligence including Know Your Customer norms and comply with anti-money laundering rules while allowing this facility, the central bank added.

PTI

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