Module: | MODULE A: INTERNATIONAL BANKING
Q58: Consider the following statements regarding remittances for Medical Treatment and Studies Abroad:
1.
Authorized Dealers may allow remittances exceeding USD 250,000 for medical treatment based on an estimate from a doctor in India or a hospital abroad.
2.
Authorized Dealers may allow remittances exceeding USD 250,000 for studies abroad based on an estimate from the foreign university.
3.
If a person remits USD 260,000 for medical treatment with approval, they can still remit an additional USD 250,000 for investment purposes in the same year.
Which of the statements given above is or are correct?
✅ Correct Answer: Option A
🎯 Quick Answer:
Statements 1 and 2 are correct. Statement 3 is incorrect.
Concept Definition: Operational Flexibility for Essential Needs.Structural Breakdown: The Exception Rule: While the LRS limit is generally a hard cap, exceptions exist for humanitarian and educational needs.Banks (Authorized Dealers) have the power to allow remittances exceeding USD 250,000 for Medical Treatment and Studies Abroad without prior RBI approval.The Condition: The remitter must provide an estimate from the relevant authority (doctor, hospital, or university) justifying the higher amount.Impact on Other Remittances: If the limit is exceeded for these specific purposes (e.g., USD 260,000 used for medical), the LRS limit for the year is exhausted.The individual cannot make further remittances for other purposes (like investment or gifts) in that financial year. Statements 1 and 2 are correct. Statement 3 is incorrect.