Whether following remittances by Resident Individuals need prior approval of Reserve Bank of India : (i) Geeta gifts to her sister in New York USD 2,45,000. (ii) Manav spends USD 3,50,000 as fees for an Academic Course i

Within the limits of Liberalised Remittance Scheme (LRS) of USD 2,50,000, any resident individual may remit up-to USD 2,50,000 in one Financial Year as gift to a person residing outside India. Hence, the RBI approval is not needed by Geeta. AD Category I banks and AD Category II, may release foreign exchange up to USD 2,50,000 or its equivalent to resident individuals for studies abroad without insisting on any estimate from the foreign University. However, AD Category I bank and AD Category II may allow remittances (without seeking prior approval of the Reserve Bank of India) exceeding USD 2,50,000 based on the estimate received from the institution abroad. Hence RBI approval is not needed by Manav. For private visits abroad, other than visit to Nepal and Bhutan, resident individual can obtain foreign exchange up to an aggregate amount of USD 2,50,000, from an Authorised Dealer, in any one financial year, irrespective of the number of visits undertaken during the year. Further, 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 are to be subsumed under the Liberalised Remittance Scheme (LRS) limit. The tour operator can collect this amount either in Indian rupees or in foreign currency from the resident traveler. Hence, RBI approval is not needed by Ishan. A person wanting to emigrate can draw foreign exchange from AD Category I bank and AD Category II up to the amount prescribed by the country of emigration or USD 250,000. Remittance of any amount of foreign exchange outside India in excess of this limit may be allowed only towards meeting incidental expenses in the country of immigration and not for earning points or credits to become eligible for immigration by way of overseas investments in government bonds; land; commercial enterprise; etc. Hence, the RBI approval is needed by Ashima as the amount exceeds USD 2,50,000.