Foreign Inward Remittances received, constitute major inflow of Foreign Exchange into the country which in turn boosts Balance of Payments position and helps to boost FOREX Reserves of the country. In India, resident individuals, firms and companies can freely receive foreign Inward Remittances through normal banking channels, either for settlement of their trade transactions or clean remittances towards savings / personal purposes.

         Certain inward remittances are regulated by THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 (FCRA). Though these guidelines are  issued under different law and for different purpose, one need to go through the provisions to ensure that the remittances comply with the requirements under this law.


Compared to the inward remittances there are guidelines under FEMA to regulate outward remittances. Please go through the Regulations section to know details of guidelines issued  to regulate outward remittances from India. Following are the broad guidelines for restrictions under FEMA divided in three schedules:

Schedule I

Transactions which are Prohibited 

1. Remittance out of lottery winnings.

2. Remittance of income from racing/riding etc. or any other hobby.

3. Remittance for purchase of lottery tickets, banned /proscribed magazines, football pools, sweepstakes, etc.

4. Payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies.

5. Remittance of dividend by any company to which the requirement of dividend balancing is applicable.

6. Payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco.

7. Payment related to “Call Back Services” of telephones.

8. Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme.

Schedule II

Transactions which require prior approval of the Central Government

Purpose of Remittance Ministry/Department of Govt. of India whose approval is required
1. Cultural Tours Ministry of Human Resources Development, (Department of Education and Culture)
2. Advertisement in foreign print media for the purposes other than promotion of tourism, foreign investments and international bidding (exceeding USD 10,000) by a State Government and its Public Sector Undertakings Ministry of Finance, (Department of Economic Affairs)
3. Remittance of freight of vessel chartered by a PSU Ministry of Surface Transport, (Chartering Wing)
4. Payment of import through ocean transport by a Govt. Department or a PSU on c.i.f. basis (i.e. other than f.o.b. and f.a.s. basis) Ministry of Surface Transport, (Chartering Wing)
5. Multi-modal transport operators making remittance to their agents abroad Registration Certificate from the Director General of Shipping

6. Remittance of hiring charges of transponders by

(a) TV Channels

(b) Internet Service providers

Ministry of Information and Broadcasting
Ministry of Communication and Information Technology
7. Remittance of container detention charges exceeding the rate prescribed by Director General of Shipping Ministry of Surface Transport (Director General of Shipping)
8. omitted
9. Remittance of prize money/sponsorship of sports activity abroad by a person other than International / National / State Level sports bodies, if the amount involved exceeds USD 100,000. Ministry of Human Resources Development (Department of Youth Affairs and Sports)
10. Omitted
11. Remittance for membership of P&I Club Ministry of Finance (Insurance Division)


Notified by GOI Notification No. G.S.R 426(E) dated May 26, 2015

Facilities for individuals—

1. Individuals can avail of foreign exchange facility for the following purposes within the limit of USD 2,50,000 only. Any additional remittance in excess of the said limit for the following purposes shall require prior approval of the Reserve Bank of India.

  1. Private visits to any country (except Nepal and Bhutan).
  2. Gift or donation.
  3. Going abroad for employment.
  4. Emigration.
  5. Maintenance of close relatives abroad.
  6. Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up.
  7. Expenses in connection with medical treatment abroad.
  8. Studies abroad.
  9. Any other current account transaction

Provided that for the purposes mentioned at item numbers (iv), (vii) and (viii), the individual may avail of exchange facility for an amount in excess of the limit prescribed under the Liberalised Remittance Scheme as provided in regulation 4 to FEMA Notification 1/2000-RB, dated the 3rd May, 2000 (here in after referred to as the said Liberalised Remittance Scheme) if it is so required by a country of emigration, medical institute offering treatment or the university, respectively:

Provided further that if an individual remits any amount under the said Liberalised Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 (US Dollars Two Hundred and Fifty Thousand Only) by the amount so remitted:

provided also that for a person who is resident but not permanently resident in India and –

  1. is a citizen of a foreign State other than Pakistan; or
  2. is a citizen of India, who is on deputation to the office or branch of a foreign company or subsidiary or joint venture in India of such foreign company,

may make remittance up to his net salary (after deduction of taxes, contribution to provident fund and other deductions).

Explanation: For the purpose of this item, a person resident in India on account of his employment or deputation of a specified duration (irrespective of length thereof) or for a specific job or assignments, the duration of which does not exceed three years, is a resident but not permanently resident:

provided also that a person other than an individual may also avail of foreign exchange facility, mutatis mutandis, within the limit prescribed under the said Liberalised Remittance Scheme for the purposes mentioned herein above.