CII calls for liberal forex regime

June 8: The Confederation of Indian Industry has chalked out a nine-point agenda for further liberalisation of the country's foreign exch...

June 8: The Confederation of Indian Industry has chalked out a nine-point agenda for further liberalisation of the country8217;s foreign exchange regime in order to facilitate easier overseas transactions and reducing the quantum of paperwork involved in forex.

CII has suggested that the limit of the basic travel quota be raised from the existing 3,000 to 10,000. There should also be an enhancement in the limit of payment of tuition fees, maintenance, books and minor equipment from 30,000 to 50,000. In addition, 5,000 should be allowed as settling in expenses and 5,000 per annum should be allowed for pocket money/miscellaneous expenses.

CII feels that there are still many regulations that make procurement of forex an unnecessarily slow process. In particular, low limits on forex allowances significantly restrict the freedom of individuals to carry out overseas transactions.

CII has also called for enhancement in the forex allowance for casual gift remittances to relatives/friends residing abroadfrom 1,000 per calendar year to 2,500 per calendar year.

There should be an increase in limit for payment for maintenance expenses to close relatives permanently residing abroad from 5,000 per calendar year per beneficiary by a family unit to 10,000.

There should also be an increase in business travel allowance from 500 a day to 1,000 a day for a period not exceeding 45 days for chief or senior executives like chairmen, managing directors or executive directors special scale and from 350 a day to 400 a day for a period not exceeding 45 days for those eligible for the general scale.

There should be an enhancement of limit for donations to charitable/educational/religious and cultural organisations abroad from 1,000 in a calendar year per year to 3,000 in a calendar year per year, said CII.