Mr. Arman has been diagnosed with a rare cardiac condition and plans to travel to USA for a specialized heart surgery. He seeks guidance regarding…

Remittance of Foreign Exchange: According to section 5 of the Foreign Exchange Management Act (FEMA), 1999, any person may sell or draw foreign exchange to or from an authorized person if such a sale or drawal is a current account transaction. Provided that Central Government may, in public interest and in consultation with the reserve bank, impose such reasonable restrictions for current account transactions as may be prescribed. As per the rules, drawal of foreign exchange for current account transactions are categorized under three headings- Transactions for which drawal of foreign exchange is prohibited,Transactions which need prior approval of appropriate government of India for drawal of foreign exchange, andTransactions which require Reserve Bank of India's (RBI) prior approval for drawl of foreign exchange. "Remittance of foreign exchange for medical treatment abroad" requires prior permission or approval of the RBI where the individual requires withdrawal of foreign exchange exceeding USD 250,000. The Schedule also prescribes that for the purpose of expenses in connection with medical treatment, the individual may avail of exchange facility for an amount in excess of the limit prescribed under the Liberalized Remittance Scheme, if so required by a medical institute offering treatment. Therefore, Mr. Arman can draw foreign exchange up to USD 250,000 and no prior permission/ approval of RBI will be required. For amount exceeding the above limit, authorised dealers may release foreign exchange based on the estimate from the doctor in India or hospital or doctor abroad.