RBI in a bi-monthly Monetary Policy Statement on June 3, 2014, announced 3 important measures related to Non Resident Indians (NRI), Foreign Portfolio Investors (FPI) and foreign exchange remittances by Resident Indians:
1. Last year, to stem rupee depreciation and restrict outward remittances, the eligibility limit for foreign exchange remittances under the Liberalized Remittance Scheme (LRS) was reduced to US$ 75,000 last year. With the recent stability in the foreign exchange market, RBI decided to enhance the eligible limit to US$ 125,000 without end use restrictions, except for prohibited foreign exchange transactions such as margin trading, lottery, and the like.
2. RBI allowed foreign portfolio investors to participate in the domestic exchange traded currency derivatives market to the extent of their underlying exposures plus an additional US$ 10 million. The measure was announced with a view to improving the depth and liquidity in the domestic foreign exchange market. RBI also allowed domestic entities similar access to the exchange traded currency derivatives market.
3. Non-residents visiting India were not permitted to take out any Indian currency notes (INR) while leaving the country. Only Indian residents were allowed to take Indian currency notes up to Rs. 10,000 out of the country. With a view to facilitating travel requirements of non-residents visiting India, RBI allowed all residents and non-residents except citizens of Pakistan and Bangladesh to take out Indian currency notes up to Rs. 25,000 while leaving the country.
Detailed operating guidelines for all the above measures will be issued separately.