The Reserve Bank of India has restricted individuals from utilising the facility of $1,00,000 scheme for maintaining any kind of speculative positions in overseas markets.
The central bank has clarified that individuals cannot remit any amount under this scheme for margins or margin calls to overseas exchanges or overseas counter party.
Banks have also been instructed not to extend any kind of credit facilities to resident individuals to facilitate remittances under the scheme.
The facility will be only for permissible current and capital account transactions specified under the Foreign Exchange management Act.
Earlier the RBI had specified that this facility could be used for remittance towards gift, donation and for investing in overseas companies listed on a recognised stock exchanges overseas.
The scheme had originally permitted remittance of $ 25,000 in 2004 which later was revised upward to $ 50,000 in 2006.
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