| To
simplify current account transactions, the Reserve
Bank of India has announced another series of transactions
that will henceforth not require RBI approval before
being effected.
Such
transactions include various kinds of remittances,
commission to agents for acquiring property abroad
and short term credit to overseas offices of Indian
companies.
According
to an RBI notification, these remittances will include
those by artists for advertisements on foreign television,
where export earnings are less than Rs 10 lakh (US
$22200), of royalty and payment of lump sum fees,
and where agreements have not been registered with
the RBI.
However,
remittances under agreements not registered with
the RBI have to be in conformity with the norms
prescribed under the Schedule II of the Foreign
Exchange Management Act (FEMA) Rules 2000 pertaining
to Current Account Transactions.
Commissions
to agents will include the amount to be paid abroad
for sale of residential plots for amounts up to
$25,000 or 5 per cent of the inward remittance,
whichever is higher.
It
has also been clarified that remittances for securing
personal health insurance from a company abroad
will also no longer require prior approval of the
Government of India.
However,
remittances for use of trademark/franchise would
continue to require prior approval of the RBI. |
