Banking News

Online submission of Form A2 is now allowed

Henceforth the customers of banks may submit Form A2 through online. RBI in its communiqué to Foreign Exchange Dealers (February 11, 2016) who offer internet banking facility to their customers informed  that   the Authorised Dealers (ADs)  may allow online submission of Form A2. Further they may also enable uploading/submission documents if required for establishing the permissibility of the remittance under the extant rules framed FEMA. In certain transactions under Liberalised Remittance scheme (LRS) wherein submission of documents is not required, the transaction may put through on the basis of the Form A2 alone. To begin with RBI has fixed upper limit of USD 25000 or its equivalent for individuals and USD 100000 or equivalent for corporates for online submission alone subject to the remittance will be to the satisfaction of authorized dealer as laid down in section 10(5) of FEMA. The regulator has further communicated that the reporting of such transactions by AD banks in FETERS shall continue like earlier.

The Form A2 is also being revised. In the revised A2 the transactions relating to LRS to  be reported under respective FETERS purpose codes (e.g. travel, medical treatment, purchase of immovable property, studies abroad, maintenance of close relatives; etc.) instead of reporting collectively under the purpose code S0023.

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