Seeking Suggestions  for “THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS”

Dear All,

The Government has recently introduced the “THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS”BILL, 2015 and is seeking inputs from all concerns.

For the benefit of INBA members the draft bill’s link is enclosed herewith. We request you to please provide your suggestions on how to improve the said Bill. The standing committee has clearly requested that suggestions should be against each clause; therefore kindly provide suggestions accordingly in the format enclosed:

INBA’s recommendations to “THE COMMERCIAL COURTS, COMMERCIAL DIVISION AND COMMERCIAL APPELLATE DIVISION OF HIGH COURTS” BILL, 2015.

S. No.

Section

Particulars of Section

Effect and impact of the sections

Recommendations to the proposed Bill

Download Format

All are requested to please submit their written responses in the above format latest by: 17th June, 2015. Please note INBA needs to compile your suggestions before sending them to the committee which has to be done latest by 20th June, 2015.

Your submission will be appreciated and acknowledged by the committee of Parliament.

For all submission related queries, please contact at:

Archana Aggarwal; Email: archana_aggarwal@indianbarassociation.org;

Contact:+919971532995/918285710651

RBI increases limit for resident individuals under Liberalised Remittance Scheme (LRS) from USD 125,000 to USD 250,000

RBI increases limit for resident individuals under Liberalised Remittance Scheme (LRS) from USD 125,000 to USD 250,000

In reference to the A.P.(DIR Series) Circular No. 138 dated June 3, 2014 regarding the Liberalised Remittance Scheme (LRS) for resident individuals and the existing guidelines issued under the Foreign Exchange Management (Current Account Transactions) Rules, 2000. RBI has decided to make the following changes for further liberalization and rationalization on the existing guidelines.

Limit and Facilities under LRS–AD banks may now allow remittances by a resident individual up to USD 250,000 per financial year for any permitted current or capital account transaction or a combination of both. If an individual has already remitted any amount under the LRS, then the applicable limit for such an individual would be reduced from the present limit of USD 250,000 for the financial year by the amount already remitted. The permissible capital account transactions by an individual under LRS are:

2013. i) opening of foreign currency account abroad with a bank;
      ii) purchase of property abroad;
      iii) making investments abroad;
      iv) setting up Wholly owned subsidiaries and Joint Ventures abroad;
      v) extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 2013.

Remittance Procedure

Requirements to be complied with by the remitter— The resident individual seeking to make the remittances should furnish an application cum declaration in the format to the AD/ full fledged money changer (FFMC) concerned regarding the purpose of the remittances and declaration to the effect that the funds belong to the remitter and will not be used for the prohibited purposes. Resident individuals can also purchase foreign exchange from a full fledged money changer (FFMC) for private/business visits. Foreign exchange thus purchased from an FFMC should also be reckoned within the overall LRS limit USD 250,000 and declared accordingly in the application-cum-declaration form submitted to the AD bank.

Requirements to be complied with by the Authorised Persons– While allowing the facility to resident individuals, Authorised Persons, including AD Category II and FFMCs, are required to ensure that the “Know Your Customer” guidelines and the Anti-Money Laundering Rules in force have been complied with while allowing the transactions.

Requirements to be complied with by the Authorised Dealers– It is clarified that banks should not extend any kind of funded and non-funded facilities to resident individuals to facilitate capital account remittances under the Scheme. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance for capital account transactions.