Indian travellers going abroad can now make hotel reservations and buy Euro Rail tickets outside their basic travel quota (BTQ) which was recently doubled from $5,000 to $10,000.
This is the outcome of the Reserve Bank of India (RBI) further liberalising on Wednesday remittance norms for foreign exchange for tours and travels.
The central bank has also allowed Indian companies to make bids in foreign currency for projects to be executed in the country, for which global bids have been invited Companies can also advertise overseas even if they do not have export earnings.
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It said that resident Indians are permitted to incur liabilities in foreign exchange and to make or to receive payments in foreign exchange, in respect of global bids where the central government had authorised such projects to be executed in India. Authorised dealers can sell foreign exchange to the resident Indian company which has been awarded the contract.
Also, 100 per cent export oriented units (EOUs) and units in export processing zones (EPZs) have been permitted to sell goods manufactured by them to other 100 per cent EOUs/EPZ units against payment in foreign exchange.
The RBI also added that if the concerned authorities permit EOUs, units in EPZs, EHTPs and STPs to sell goods to buyers in the domestic tariff area (DTA) against payment in free foreign exchange, authorised dealers may sell foreign exchange to the buyers of such goods in the DTA, without prior approval of the Reserve Bank.
"Remittance towards the cost of advertisement in print media, radio, etc., outside India or on the internet, may be allowed by authorised dealers," the RBIU added.
This announcement will open the doors for Indian corporates which were seeking RBI approval to air TV commercials on private foreign channels. The Foreign Exchange Management Act (FEMA) demands that a company wishing to air its commercials on these channels need to show export earnings for the last two years. A senior insurance official said that this notification makes things more transparent and simplier.