ELIGIBILITY FOR PRIOR PERMISSION, CONDITIONS OF REGISTRATION AND PRIOR PERMISSION, PROCEDURE FOR APPLICATION, UTILIZATION OF FUNDS, SUSPENSION AND CANCELLATION, 2020 AMENDMENT POINTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
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Free sample — 8 of 66 rapid-fire Q&A cards.
Who is eligible to apply for prior permission under FEMA for capital account transactions exceeding the Liberalised Remittance Scheme limit?
Resident individuals who wish to make capital account transactions beyond the LRS limit of USD 250,000 per financial year must obtain prior permission from the Reserve Bank of India.
What is the full form of FEMA as it relates to foreign exchange facilities for individuals?
Foreign Exchange Management Act, enacted in 1999.
What is the primary regulatory authority that grants prior permission for foreign exchange transactions by individuals under FEMA?
The Reserve Bank of India (RBI) is the primary authority empowered to grant prior permission for foreign exchange transactions that fall outside the general permissions available under FEMA and its regulations.
Which schedule under FEMA Current Account Transaction Rules lists transactions requiring RBI prior permission?
Schedule III lists transactions requiring prior RBI approval.
Under what conditions must an individual register with an Authorised Dealer before undertaking certain foreign exchange transactions?
An individual must register with an Authorised Dealer (AD) Category-I bank when the nature and frequency of their foreign exchange dealings require oversight, such as for business-related outward remittances or recurring capital account transactions.
What does 'prior permission' mean in the context of individual foreign exchange transactions under FEMA?
Advance approval from RBI before undertaking specified foreign exchange transaction.
What documents are typically required when an individual applies for prior permission from RBI for a foreign exchange transaction?
The applicant must submit Form A-2 or the relevant application form along with supporting documents such as purpose declaration, proof of identity, source of funds, and details of the overseas recipient or investment.
Under FEMA, who qualifies as a 'resident individual' eligible to remit funds under the Liberalised Remittance Scheme?
Person resident in India as defined under Section 2(v) of FEMA.
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