(i) Mr. Arjun Verma, a resident individual in India, intends to obtain foreign exchange US $2,00,000 for pursuing higher education abroad, based on…

(i) Foreign exchange may be released for studies abroad up to a limit of US $ 250,000 for the studies abroad without any permission from the Reserve Bank of India (RBI). Above this limit, RBI's prior approval is required. Further proviso to Para I of Schedule III states that individual may be allowed remittances exceeding USD 250,000 based on the estimate received from the institution abroad. In this case since US $ 2,00,000 is the drawal of foreign exchange, so permission of the RBI is not required. Hence, Mr. Arjun Verma can get the foreign exchange for the said purpose. (ii) Under the provisions of section 5 of Foreign Exchange Management Act (FEMA) 1999, certain Rules have been made for drawal of foreign exchange for current account transactions. Gift remittance is a current account transaction. Gift remittance exceeding US $ 250,000 can be made after obtaining prior approval of the RBI. In the present case, since the amount to be gifted by an individual, Mr. Narain Sharma is USD 25,000, there is no need for any permission from the RBI.