Individuals can remit up to $25,000 in a year

Resident individuals can now remit up to $25,000 per calendar year for any purpose without any distinction between the transaction being on the current account or capital account.

The Reserve Bank of India has formulated a new scheme in a bid to further liberalise the external sector.

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

Under this facility, resident individuals will be free to acquire and hold immovable property or shares or any other asset outside India without prior approval of the Reserve Bank.

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 RBI.

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

The RBI said, "this scheme, which will come into operation with immediate effect, will be available for making remittance up to $ 25,000 per calendar year for any current or capital account transaction or a combination of both."