Liberalisation in A2 Fx payment ( Non Trade )

With a view to  liberalize  the documentation requirements, the limit for foreign exchange remittance for miscellaneous purposes without documentation formalities, has been raised recently by RBI  from USD 5000 to USD 25000 with immediate effect.

Authorised Dealers need not obtain any document, including Form A-2, except a simple letter as stated above as long as the foreign exchange is being purchased for a current account transaction (not included in theSchedules I and II of Government Notification on Current Account Transactions),and the amount does not exceed USD 25000 or its equivalent and the payment is made by a cheque drawn on the applicant's bank account or by a Demand Draft.