Friday, February 5, 2016

Central Bank relaxed restrictions on remitting foreign currencies

Feb 05, 2016 (LBO) – The Central Bank has relaxed restrictions on remitting and transacting foreign currencies with immediate effect.
With this new decision, foreign currencies can be remitted out of NRFC, RFC and RNNFC (Resident Non National Foreign Currency) accounts and FEEA (Foreign Exchange Earners’ Account) for any purpose and prior approval need not be obtained for such remittances.
Up to 10,000 US dollars or its equivalent can be withdrawn in cash from such accounts for any purpose.
Earlier foreign currency withdrawals were limited for activities like education or medical purposes and banks had to ensure that transactions were only for current account purposes.
“But banks will now remit foreign currency payments without questions being asked,” he said.
However domestic withdrawals from these accounts still have to be made in rupees.

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