FEM (PERMISSIBLE CAPITAL ACCOUNT TRANSACTIONS) (THIRD AMENDMENT) REGULATIONS, 2015 – AMENDMENT IN REGULATION 4
NOTIFICATION [NO. FEMA.341/2015-RB]/GSR 425(E), DATED 26-5-2015
In exercise of the powers conferred by sub-section (2) of section 6, sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) the Reserve Bank of India, in consultation with Central Government, makes the following Regulations to amend the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, (Notification No. FEMA 1/2000-RB dated May 3, 2000) namely:—
Short title and commencement
1. (i) These Regulations may be called the Foreign Exchange Management (Permissible Capital Account Transactions) (Third Amendment) Regulations, 2015.
(ii) They shall come into force from the date of their publication in the Official Gazette.
Amendment to the Regulations
2. In the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000, in Regulation 4, in sub-regulation (a), for the existing provisos, the following shall be substituted:—
|(a)||subject to the provisions of the Act or the rules or regulations or directions or orders made or issued thereunder, a resident individual may, draw from an authorized person foreign exchange not exceeding USD 250,000 per financial year or such amount as decided by Reserve Bank from time to time for a capital account transaction specified in Schedule I.|
|Explanation: Drawal of foreign exchange as per item number 1 of Schedule III to Foreign Exchange Management (Current Account Transactions) Rules, 2000 dated 3rd May, 2000 as amended from time to time, shall be subsumed within the limit under proviso (a) above.|
|(b)||Where the drawal of foreign exchange by a resident individual for any capital account transaction specified in Schedule I exceeds USD 250,000 per financial year, or as decided by Reserve Bank from time to time as the case may be, the limit specified in the regulations relevant to the transaction shall apply with respect to such drawal.|
Provided further that no part of the foreign exchange of USD 250,000, drawn under proviso (a) shall be used for remittance directly or indirectly to countries notified as non-co-operative countries and territories by Financial Action Task Force (FATF) from time to time and communicated by the Reserve Bank of India to all concerned.”