TITLE: India's Reserve Bank Updates Master Direction on Other Remittance Facilities
BODY:
On March 10, 2026, the Reserve Bank of India (RBI) updated its Master Direction on Other Remittance Facilities, which governs foreign exchange remittances by authorised persons under the Foreign Exchange Management Act (FEMA), 1999. The Master Direction compiles instructions on remittance facilities available to residents and consolidates regulatory requirements for authorised dealers and authorised dealer category II entities.
The updated direction addresses remittance facilities across multiple categories. For resident individuals, the RBI maintains the Liberalised Remittance Scheme (LRS) limit of USD 250,000 per financial year for current account transactions including private visits, employment, emigration, medical treatment abroad, and studies abroad. Travel-related remittances permit foreign currency notes and coins up to USD 3,000 per visit for most countries, with higher limits for Haj/Umrah pilgrimage. The direction permits international credit cards, debit cards, and store value cards for overseas transactions, subject to prescribed limits. Unspent foreign exchange may be surrendered within 180 days of receipt or return.
For persons other than individuals, remittances for donations, commissions on property sales, consultancy services, and pre-incorporation expense reimbursements require RBI prior approval if thresholds are exceeded. The direction prohibits remittances for lottery participation and transactions with residents of Nepal and Bhutan. Authorised dealers must obtain Form A2 declarations for cross-border remittances and comply with Know Your Customer (KYC) and anti-money laundering (AML) standards under FEMA, 1999.
The RBI emphasises operational compliance requirements for authorised persons, including preservation of transaction documentation for verification and reporting of suspected contraventions to the central bank.