What is the maximum amount I can transfer from India to United Arab Emirates? – New
Know the Law: What are the legal restrictions involved in transferring money from India?
Question: I am in a difficult situation and I need your help. My son has a rare bone disease and we are struggling to cover the costs of his treatment. He needs long-term surgery and rehabilitation. We approached a charity in India and they collected money for my son. Will it be legal for me to accept this money while I reside in the UAE? Can this money be transferred to the United Arab Emirates from India? What are the legal restrictions involved?
Following your questions, it may be noted that the Foreign Exchange Management Act of 1999 (FEMA); Exchange Management (Asset Remittance) Regulations 2016 read with Notification No. FEMA 13 (R) / 2016-RB published on April 1, 2016 (the Notification) and Main Directive 13 / 2015-16 – Asset Remittance updated on April 28, 2016 (General Management), will apply.
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We are assuming that your son’s treatment is taking place in a hospital in the United Arab Emirates and that you are Non-Resident Indians (NRIs) residing in the Emirates.
In response to your questions, it should be noted that as an NRI you can remit from India up to $ 1 million in a fiscal year. This is in accordance with rule 4 (2) of the notification and rule 3.2 of the lead directive.
Article 4 (2) of the notification reads as follows:
“4. Authorization to deliver assets in certain cases: –
(2) A Non-Resident Indian (NRI) or Person of Indian Origin (PIO) may remit through an Authorized Reseller an amount not exceeding US $ 1,000,000 (one million US dollars only) per financial exercise.
“Provided further that, when the payment is to be made from the balances held in the NRO account, the account holder must undertake with the authorized distributor that said payment be made from the remitter’s balances held on the account resulting from its legitimate claims in India and not by borrowing from another person or transferring another NRO account and if so, the account holder will be liable for criminal action under FEMA.
In addition to the above, rule 3.2 of the Policy Statement reads as follows:
“3.2 Shipments by NRI / PIO
ADs may authorize NRIs / PIOs, upon presentation of supporting documentation, to remit up to US $ 1 million, per fiscal year:
When the remittance is to be made from the balances held on the NRO account, the Authorized Distributor must obtain a commitment from the account holder stating that “said remittance is requested from the remitter’s balances held on the account resulting from his / her receivables. lawful in India and not by borrowing from another person or transferring from any other NRO account and if so, the account holder will be liable for criminal action under FEMA.
Based on the aforementioned commitment, since the transfer to be made is from donations received from a charity in India and not from balances from your legitimate claims in India, the transfer may not be legal under notification and primary directive, and therefore cannot be facilitated by the Authorized Reseller.
In view of the above, although the transfer may not be authorized under the Notice and the Principal Directive, the authorization of the Reserve Bank of India (RBI) may be requested to consider the circumstances. particular circumstances in which, if the transfer does not take place, it would cause immense difficulties for your son.
This is in accordance with Rule 7 (1) (ii) of the Notification and Rule 4.1 (b) of the Lead Directive. Article 7 (1) (ii) of the notification reads as follows:
“7. Prior authorization of the Reserve Bank in certain cases: –
(1) A person who wishes to make a transfer of assets in the following cases can apply to the Reserve Bank, namely:
(ii) Payment to a person residing outside India on the grounds that hardship will be caused to such a person if the payment is not made from India. “
In addition to the above, Main Instruction Rule 4.1 (b) reads as follows:
“4. Delivery of assets requiring RBI approval
4.1 The prior approval of the Reserve Bank is required for the delivery of assets when:
(b) Hardship will be caused to a person if payment from India is not made to such person. “
You can approach the RBI in India and / or consult an accountant or lawyer for further clarification of your questions.
Ashish Mehta is the Founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practice law in Dubai, UK and India. All the details of his practice on: www.amalawyers.com. Readers can email their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.