 "No curbs on funds for medical treatment, studies abroad: RBI")
The central bank also said that under the Liberalised Remittance Scheme (LRS) for resident individuals, funds could be used to buy shares of both listed and unlisted overseas companies.
The RBI had on August 14 reduced the limit of remittances to $75,000 from $2 lakh to check the outward flow of capital and contain the sliding value of the rupee.
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According to the RBI, only gifts and donations were included under the annual LRS limit of $75,000. Expenses on education and medical treatment purposes would be independent of the limit.
"A resident individual can make remittances for meeting expenses for medical treatment abroad up to the estimate from a doctor in India or hospital/doctor abroad under general permission...", the RBI said in a clarification, adding that these would be above and over the LRS limit.
An individual will also be allowed to make remittances up to $25,000 for maintenance expenses of a patient going abroad for medical treatment or check-up or for an attendant accompanying a patient going abroad for treatment or check-up.
For overseas studies, individuals would be allowed remittances of as much as $1 lakh over and above the annual LRS limit of $75,000.
Among the steps announced last month, the RBI had said the use of LRS for acquisition of immovable property outside India directly or indirectly would not be allowed.
With regard to investments in immovable property abroad acquired under instalment basis, the RBI today said, "Resident individuals are permitted to make remittances for acquiring immovable property within the annual limit of $75,000 for already contracted cases (contracts entered into on or before August 14, 2013)."
Clarifying its position on current account transactions, the RBI said, "Notwithstanding the revised guidelines and reduction in the LRS limit, these guidelines (will)...Not affect genuine transactions."