Simplified Laws Guide to Taxation and Legal Concern Laws | Act # 22 | Foreign Exchange Management Act,1999 (FEMA)
“RBI increases Individuals’ spending limit abroad” News dated 3rd June, 2014
Under the Liberalized Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 125000 per financial year (April – March) without end use restrictions. Thus resident individuals can acquire and hold shares or debt instruments or other assets, purchase gifts, make donations or spend on medical expenses outside India without the prior approval of Reserve Bank of India.
Why the limit is increased from USD 75000 to USD 125000?
Initially, the limit was USD 200000 and on 14th August, 2013, RBI reduced remittance limit to USD 75000. In view of the recent stability in foreign exchange market, RBI has decided to enhance the limit to USD 125000
The reason is very simple: In 2013, the inflow of dollars into India was less and thereby the rate of dollar against rupee went upto 66. In order to conserve the dollars in the country (so that the exchange rate comes down based on demand and supply of dollars), the outflow of dollars is reduced.
Now the inflow of dollars is increasing and the rate of dollar against rupee is around 59+. In order to hold on the dollar rate around 55-58, the RBI has allowed additional outflow of dollars.
Plus Point
About S P Balasubrahmanyam
Popularly known as SPB or Balu.
SPB was born on 4th June 1946 (67 Years) in Andhra Pradesh. His father Sri S P Sambamurthy was a Harikatha artiste. He has two brothers and five sisters. One among them is S P Sailaja (famous singer).Studied Engineering at AMIE, Chennai. SPB is married to Savitri and has two children, Pallavi and Charan. (also a playback singer and film producer)
He made his debut in Telugu film ‘Sri Sri Sri Maryada Ramanna’as a playback singer in 1966 and to date he has song over 40000 songs in various languages such as Tamil, Kannada, Telugu and Hindi.
He has also acted in several movies, anchored several TV reality shows, composed music and also produced films.
He has won several national awards including civilian awards Padmashri and Padma Bhushan.
Yet, SPB is an unassuming and humble person. On his birthday, let us wish him a wonderful birthday.
Thought for the day
Music can change lives. Whether you are having a good or bad day, the power of music can change one’s mood
