MUMBAI, Nov 4: The Reserve Bank of India (RBI) has announced a series of changes in its exchange control regulations giving more powers to authorised dealers. The changes relate to the credit of refund of earnest money from government housing boards to non-resident Indians, travel to neighbouring countries by land and release of foreign exchange for sports activities.

In a circular dated October 25 issued to all authorised dealers (ADs) in foreign exchange, the central bank has said that ADs have now been delegated to credit refund money received from government housing boards to applicants' non-resident Indian accounts.

Earlier, applications for credit of refund of application/earnest money received by NRIs from the government housing boards on account of non-allotment of flats/plots to their NRE accounts required RBI's prior approval. Now, the ADs can release the money provided they are satisfied about the genuineness of the request with reference to the documentary evidence such as the receipt issued by the housing board.

RBI has also allowed all ADs to release foreign exchange within the overall ceiling of $3,000 for travel by land to travellers eligible for BTQ for travel to Bangladesh, Pakistan or Myanmar. Earlier, Myanmar was not on the list and only AD branches functioning under the jurisdiction of Calcutta, Patna, Chandigarh and New Delhi offices were allowed to release forex for the purpose. ADs have also been delegated powers to release foreign exchange for visits of Indian sportsmen for undergoing training abroad as also for engagement of overseas trainers/coaches.

They may also allow remittance of up to $25,000 in each case by Indian sponsors towards prize and sponsorship money in respect of sports events abroad, states the circular. At present, prior permission of the ministry of human resources (department of sports and youth affairs) is required for release of foreign exchange for participating in sports events of international sports bodies as also for remittance of prize/sponsorship money and for foreign trainers engaged here.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.