A strong rupee has emboldened the Reserve Bank of India (RBI) to and the like, RBI’s bi-monthly policy statement said. Reserve Bank relax some foreign exchange-related restrictions, including the in-of India has also allowed foreigners and non-resident Indians to take dividual overseas remittance limit of US$ 75,000 per year which has currency worth INR 25,000 out of the country to facilitate their been increased to US$ 125,000. The central bank has also allowed travel requirements. Earlier, the limit was INR 10,000 and was avail-foreign institutional investors to hedge their investments and an ad-able only for Indian residents. This facility will, however, not be availditional US$ 10 million using exchange-traded currency derivatives, able to citizens of Pakistan and Bangladesh. Money changers say besides promising to allow domestic entities the same flexibility. Th e Indian currency is already being exchanged in several foreign cities overseas remittance limit comes under the liberalized remittance and the liberalized scheme will increase the acceptance of the rupee. scheme which was reduced to US$ 75,000 last year when the rupee The measures with respect to outward remittances and currency was in a free fall against the dollar. In view of the recent stability in markets reflect both the significantly improved confidence in India’s the foreign exchange market, it has been decided to enhance the external position, which allows a reversal of the extraordinary measlimit to US$ 125,000 without end-use restrictions except for prohib-ures taken last year, and the focus on developing deeper onshore ited foreign exchange transactions such as margin trading, lottery markets, says Chanda Kochhar, MD & CEO, ICICI Bank.
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