4. What are the different purposes of remittance from India to the UK?
For private travel to the United Kingdom, a Resident Indian is allowed to take foreign exchange up to US$ 2,50,000 or its equivalent in GBP in a financial year from authorized dealers or fully-fledged money changers. This limit is applicable irrespective of the number of trips abroad in a financial year, as long as the total forex limit of the resident Indian falls below US$ 2,50,000. Out of this, 3, 000 USD or equivalent can be taken abroad as cash (Currency) per trip. The remaining amount can be carried in forex card and/or traveller’s cheques.
In the case of arranged tours to the UK, all tour related expenses including cost of rail/road/water transportation; cost of Euro Rail; passes/tickets, etc. outside India; and overseas hotel/lodging expenses shall be included under the LRS limit. The tour operator can collect this amount either in Indian rupees or in foreign currency from the resident traveller.
Foreign exchange up to US$ 2,50,000 or its equivalent in British pounds is permitted by RBI for the purposes of study abroad. Amounts in excess of the limit can be released on the basis of documentary evidence of requirement like estimate received from a university in the United Kingdom.
The Scheme can be used for outward remittance in the form of a DD either in the resident individual’s own name or in the name of the beneficiary with whom he/she intends putting through the permissible transactions at the time of private visit abroad, against self-declaration of the remitter in the format prescribed.
Individuals can also open, maintain and hold foreign currency accounts with a bank in the UK for making remittances under the Scheme without prior approval of the Reserve Bank. The foreign currency accounts may be used for putting through all transactions connected with or arising from remittances eligible under this Scheme.
- Medical treatment in the United Kingdom
A person going anywhere within the United Kingdom, either England, Wales, Scotland or Northern Ireland for medical treatment is allowed foreign exchange up to an amount of USD 2,50,000 or its equivalent per FY without insisting on an estimate from a hospital/doctor. For amount exceeding the above limit, Authorised Dealers may release foreign exchange under general permission based on the estimate from the doctor in India or hospital/ doctor in the UK or Great Britain. A person who has fallen sick after proceeding abroad may also be released foreign exchange by an Authorised Dealer (without seeking prior approval of the Reserve Bank of India) for medical treatment outside India.
- Employment in the United Kingdom
A person going to the UK for employment can draw foreign exchange up to USD 2,50,000 per FY from an Authorised Dealer in India.
A person wanting to emigrate to the UK can draw foreign exchange from AD Category I bank and AD Category II money changers up to the amount prescribed by the country of emigration or USD 250,000. Remittance in excess of this limit may be allowed only for meeting incidental expenses in the country of immigration.
- Maintenance of close relatives in the UK
A resident Indian can send money to the UK for the maintenance expense of their close relatives up to up-to USD 2,50,000 per Financial Year (April - March) [‘relative’ as defined in Section 2(77) of the Companies Act, 2013] abroad.
- Gift Remittance / Donation to the UK
Any resident individual may remit up to USD 2,50,000 or its equivalent in GBP in a Financial Year as a gift to a person residing in UK including NRIs and Overseas Citizen of India (OCI) or as a donation to an organization outside India.