Unfortunate news for Indian forex traders.

[SavantGarde]

Ok...Here is my last attempt at explaining since you take 'Remittances From India' so literally

Inflow of dollars that get converted into INR increases RBI's foreign currency reserves.....

Now if you were remitting dollars for whatever reasons that means RBI is giving Foreign currency from its reserves in exchange for INR....

This where the various policy rules of RBI affect what one can or cant remit.

If I am allowed a foreign currency account and somebody gifts me 10k USD and I choose to keep it inmy foreign currency account... as USD ....this does not affect RBI's reserves when it comes in or when it goes out.

Therefore, what is stopping anybody from funding their FX accont from this considering it has no bearing on RBI's foreign currency reserves.

SavantGarde

 

[Fxbee]

Savant Sir,

I am trying to understand what you said.

Below are my interpretations

First Interpretation
1) Let some one gift you 10K USD

2) This goes to foreign currency Account

3) Now we can transfer this same 10K USD to forex broker abroad

Is this correct? If yes see below

1) For a common man , who could send gift. ( obviously, I have to send him money )
2) Is this Foreign currenct A/c be opned in indian banks?
3) Wire transfering this Gift " 10K USD " to foreign broker does not fall under the remittance scheme? if no then which scheme or law?


Second interpretation
1) I open International Personal Account with Foreign Bank which is allowed by RBI

2) Some one gift me 10K USD in the above A/c


Kindly guide me in this regard, Your experience is highly appreciated!

With Best Regards
FxBee

 

[SavantGarde]

Fxbee,

I am soooo happy you got it....yes it can be an Indian bank or foreign bank it doesn't matter....since RBI allows Indians to have Foreign currency account

Basiclly....if you earn in dollars or somebody gifts dollars....to you..and you maintain them in the same currency...it does not matter how you use it as long as it reflects in your IT statement.

RBI policy is discriminatory....to an extent... because of some other industry lobbying.... if I had no way out.... of doing things... I would just go to them... & tell them your policy is discriminatory... and shaped by ulterior motives or to protect certain entities and their business... I am remitting this amount & do whatever you can to charge me..... & let's see who wins in the end...

SavantGarde

Savant Sir,

I am trying to understand what you said.

Below are my interpretations

First Interpretation
1) Let some one gift you 10K USD

2) This goes to foreign currency Account

3) Now we can transfer this same 10K USD to forex broker abroad

Is this correct? If yes see below

1) For a common man , who could send gift. ( obviously, I have to send him money )
2) Is this Foreign currenct A/c be opned in indian banks?
3) Wire transfering this Gift " 10K USD " to foreign broker does not fall under the remittance scheme? if no then which scheme or law?


Second interpretation
1) I open International Personal Account with Foreign Bank which is allowed by RBI

2) Some one gift me 10K USD in the above A/c


Kindly guide me in this regard, Your experience is highly appreciated!

With Best Regards
FxBee

 

[ag_fx]

Savant Sir,


2) This goes to foreign currency Account


1) I open International Personal Account with Foreign Bank which is allowed by RBI

FxBee

It would be interesting to know what banks can provide these options in India. I know companies are allowed to maintain a foreign currency accounts with Indian banks like ICICI, HDFC. However, I wonder if individuals are also allowed to do so.

 

[SavantGarde]

It has been almost 2 years that RBI has allowed individuals to have dollar denominated accounts....

SavantGarde

 

[Rkji]

..........

 

[Rkji]

It would be interesting to know what banks can provide these options in India. I know companies are allowed to maintain a foreign currency accounts with Indian banks like ICICI, HDFC. However, I wonder if individuals are also allowed to do so.

ankit

i believe hdfc & icici have named it RFC domestic account.

http://www.icicibank.com/Personal-B...-foreign-currency-domestic-account/index.html

http://www.hdfcbank.com/personal/accounts/current_accounts/rfc_domestic_account/rfc_acc.htm

regards
rishi

 

[Fxbee]

Savant Sir,

Please solve my last query

Let's say i open Foreign currency Account with HDFC or banks with this facility. Then some one sends me a gift of 10K USD. Now I want to transfer this 10K USD to foreign ECN broker.

Should I wire transfer this amount to them?

If yes, will I be able to wire transfer this amount legally without any influence?

Does sending 10K USD gift from Indian foreign currency account to abroad falls under liberalised remittance scheme or under what law?


Savant sir, really thank you for your help! great work in this thread

With Best Regards
FxBee

 

[Fxbee]

Savant Sir,

Please solve my last query

Let's say i open Foreign currency Account with HDFC or banks with this facility. Then some one sends me a gift of 10K USD. Now I want to transfer this 10K USD to foreign ECN broker.

Should I wire transfer this amount to them?

If yes, will I be able to wire transfer this amount legally without any influence?

Does sending 10K USD gift from Indian foreign currency account to abroad falls under liberalised remittance scheme or under what law?


Savant sir, really thank you for your help! great work in this thread

With Best Regards
FxBee

Savant SIr, can you look into the above post. Can you be more clearer regarding this if possible.

waiting for your response

FxBee

 

[Fxbee]

Savant Sir,

Please solve my last query

Let's say i open Foreign currency Account with HDFC or banks with this facility. Then some one sends me a gift of 10K USD. Now I want to transfer this 10K USD to foreign ECN broker.

Should I wire transfer this amount to them?

If yes, will I be able to wire transfer this amount legally without any influence?

Does sending 10K USD gift from Indian foreign currency account to abroad falls under liberalised remittance scheme or under what law?


Savant sir, really thank you for your help! great work in this thread

With Best Regards
FxBee

Savant Sir,
I request you to answer my above questions since I really am in need. Why are you not responding to it. I just want more clearity. Also I PM you. You can PM me if there are any other issues.

But please break the ice as this forum is for guidance and learning. And I can expect a little guigance from a Forum Moderator.