$100,000 from $25,000 as gifts and donations remittance through
Donations come under $1 lakh remittance
BS Reporter / Mumbai August 13, 2007
Remittances towards gifts and donations have been brought under
the ambit of remittance scheme of individuals up to $1,00,000.
The Reserve Bank of India has clarified transactions which could
be undertaken through this scheme in a notification to the bankers.
This is an extension of the earlier scheme in February 2004, which
allowed $25,000 as remittance through individuals.
Now, there is no separate limit for making remittance for gifts
and donations, even for smaller denominations.
The remittance scheme can be used for purchase of objects of art
or invest in units of mutual funds, venture funds, unrated debt
securities and promissory notes. However, the investment in such
securities should be done through bank accounts opened abroad
sunder the scheme.
Moreover, the investor can retain or reinvest the income earned
under this scheme instead of repatriating it. An individual could
also repay loan taken abroad and an NRI can pay loan in India
on return under the scheme . Outward remittance in the form of
demand draft at the time of visit abroad can be made under the
scheme but backed by self declaration by the remitter.
While no new items have been permitted by the RBI, it is clearly
indicated that the scheme will not be used for remittance towards
margins/margin calls to overseas exchanges, for purchase of lottery,
sweep stakes, tickets or remittance to Nepal, Bhutan, Mauritius
or Pakistan or to individuals posing risks of terrorism.
The scheme is over and above the permissible routes available
for acquisition of Esops linked to ADR/GDRS or acquisition of
shares, which is pegged at $20,000 or 1 per cent of the paid-up
capital of overseas company, whichever is lower. It is mandatory
for resident individuals to use the permanent account number for