You can now have your own dollar account

• On an overseas visit as payment for services

• Remittances from a non-resident or a vistor in settlement of any lawful obligations

• Honorarium or gift while on a visit outside India

• From an authorised person for travel abroad and unspent amount.

At present, residents were required to surrender foreign exchange exceeding $2,000 acquired through any of the above sources and convert it to rupees. ‘‘With the introduction of this facility,’’ the RBI said, ‘‘the residents can either deposit the foreign exchange so acquired in the Resident Foreign Currency (Domestic) Account designated in any foreign currency or at their discretion, deposit in a Rupee account after conversion.’’

‘‘This is a step towards a free float…India is slowly opening up its capital account,’’ said a banking analyst.

This new facility is in addition to the existing provision allowing them to retain $2,000 or its equivalent in the form of currency notes or foreign currency travellers cheques.

The balance in Resident Foreign Currency (domestic) Account may be used for any purpose permissible under current foreign exchange regulations for resident Indians (travel, medical treatment abroad, gifts up to US $5,000), purchase of books and education abroad).

The account will be maintained in the form of a current account with cheque facility.

‘‘It is good news for the travelling Indian. He will face fewer hassles with foreign currency each time he travels abroad,’’ said a currency trader.

As long as the foreign exchange was acquired through permissible channels mentioned above, there would be no overall limit on balances in the account, the RBI said.

Exporters are allowed to put earnings in a special Exchange Earners’ Foreign Currency Account and this will continue, the RBI said.

India has been steadily relaxing foreign exchange rules amid record reserves, which touched $64 billion on October 18. Its rupee currency is convertible only on the current account.

The central bank allowed domestic firms in September to borrow up to $50 million from global sources without government approval as well as pre-payment of foreign loans ahead of time.

The working of this new facility will be reviewed after one year and the scheme may be further modified/liberalised in the light of ‘‘actual experience,’’ the RBI said.