The Reserve Bank of India (RBI) today further liberalised the existing rules and regulations relating to foreign exchange transactions by residents.
The RBI has allowed authorised dealers to release up to $50,000 for medical treatment outside India without insisting on any estimate from a doctor or hospital. It has also bought down the repayment period of loans taken from close relatives outside India to one year from seven years before.
Forex dealers said that this liberalisation shows that the RBI is satisfied with the current forex position in the country. They expect the central bank to continue with the liberalisation process.
Under the exiting regulations, residents can borrow upto $2,50,000 from their close relatives outside the country provided the loan is free of interest and is not repayable before seven years. RBI has now reduced the minimum period of repayment for such loans to one year.
To enable residents to avail of foreign exchange for medical treatment abroad without hassles and loss of time, authorised dealers can release $50,000 for medical treatment outside India without insisting on any estimate from a doctor or hospital, on the basis of a declaration of requirement given by the applicant.
The payment for purchase of such forex has to be made by cheque or by debit to the applicants account. According to the exiting regulations, residents can purchase forex from authorised dealers for medical treatment, on production of an estimate from a doctor or hospital giving the likely expenses involved in the treatment.
