Reg.1 Short title and commencement

       (i) These regulations may be called the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000.
       (ii) They shall come into force on the 1st day of June, 2000.
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        1. Vide G.S.R. 384(E), dated 3rd May, 2000, published in the Gazette of India, Extra., Pt. II, Sec. 3(i), dated 5th May, 2000.

Reg.2 Definitions

       In these regulations, unless the context requires otherwise,—
       (a) ‘Act’ means, the Foreign Exchange Management Act, 1999 (42 of 1999);
       (b) “drawal” means drawal of foreign exchange from an authorised person and includes opening of Letter of Credit or use of International Credit Card or International Debit Card or ATM card or any other thing by whatever name called which has the effect of creating foreign exchange liability;
       (c) ‘Schedule’ means a Schedule to these regulations;
       (d) ‘Transferable Development Rights’ means certificates issued in respect of category of land acquired for public purpose either by Central or State Government in consideration of surrender of land by the owner without monetary compensation, which are transferable in

Reg.3 Permissible Capital Account Transactions.--

       (1) Capital account transactions of a person may be classified under the following heads, namely.--
       (A) transactions, specified in Schedule I, of a person resident In India;
       (B) transactions, specified in Schedule II, of a person resident outside India.
       (2) Subject to the provisions of the Act or the rules or regulations or direction or orders made or issued thereunder, any person may sell or draw foreign exchange to or from an authorised person for a capital account transaction specified in the Schedules;
       Provided that the transaction is within the limit , if any, specified in the regulations relevant to the transaction.

Reg.4 Prohibition

       Save as otherwise provided in the Act, rules or regulations made thereunder,—
       (a) no person shall undertake or sell or draw foreign exchange to or from an authorised person for any capital account transaction,
       1[Provided that—
       (a) subject to the provisions of the Act or the rules or regulations or directions or orders made or issued thereunder, a resident individual may draw from an authorised person foreign exchange not exceeding US $ 25,000 per calendar year for a capital account transaction specified in Schedule I;
       (b) where the drawal of foreign exchange by a resident individual for any capital account transaction specified in Schedule I exceeds US $ 25,000 per calendar year, the limit specified in the regulations relevant to the transacti

Reg.5 Method of payment for investment

       The payment for investment shall be made by remittance from abroad through normal banking channels or by debit to an account of the investor maintained with an authorised person in India in accordance with the regulations made by the Reserve Bank under the Act.

Reg.6 Declaration to be furnished

       Every person selling or drawing foreign exchange to or from an authorised person for a capital account transaction shall furnish to the Reserve Bank a declaration in the form and within the time specified in the regulations relevant to the transaction.