Quick answerRBI consolidated all instructions on miscellaneous remittances for residents into one Master Circular, issued July 1, 2004, with a sunset clause of one year. It covers release of foreign exchange for travel, medical treatment, small value remittances, and the Liberalised Remittance Scheme, guiding authorised dealers under FEMA.
What changed
RBI issued Master Circular No. 3/2004-05 consolidating all existing instructions on miscellaneous remittances from India for residents into a single document. The circular includes a sunset clause, meaning it will stand withdrawn on July 1, 2005, and be replaced by an updated version.
What it means for you
This consolidation simplifies compliance for banks by providing a single reference point for all rules on resident remittances, reducing the need to track multiple circulars. Banks must ensure their processes align with the updated guidelines, including the Liberalised Remittance Scheme of USD 25,000 and documentation requirements.
What you must do
Update internal manuals and staff training materials to reference this Master Circular as the primary source for resident remittance rules.
Ensure all foreign exchange releases for travel, medical treatment, and other purposes comply with the consolidated instructions.
Prepare for the sunset clause by planning to adopt the updated Master Circular expected by July 1, 2005.
Verify that documentation and endorsement on passport procedures match the circular's requirements.
Who it affects
All Authorised Dealers in Foreign Exchange, Residents seeking to remit funds abroad for current account transactions, Bank compliance and operations teams handling foreign exchange
Regulatory timeline
Decoded by BankPulse2026-06-19 21:37 IST
Status change: withdrawn08 Jul 2026, 13:14 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the sunset clause mentioned in this Master Circular?
The circular includes a sunset clause of one year, meaning it will be automatically withdrawn on July 1, 2005, and replaced by an updated Master Circular on the same subject.
Does this circular change the Liberalised Remittance Scheme limit?
No, the circular consolidates existing instructions, including the Liberalised Remittance Scheme of USD 25,000, without altering the limit. It remains unchanged as per the underlying rules.
Which transactions are prohibited under this circular?
The circular references the Foreign Exchange Management (Current Account Transactions) Rules, 2000, which prohibit drawal of exchange for certain transactions listed in Schedule I. Specific prohibitions are not detailed in the provided text.
📜 Read the original circular — full text as issued by RBI
RBI/2004-05/3
Master Circular No. / 3/2004-05
July 1, 2004
[Updated as on December 15,2004]
To
All Authorised Dealers in Foreign Exchange
Madam/Sir,
Master Circular-Miscellaneous Remittances
from India – Facilities for Residents
Miscellaneous remittance facilities
for residents are being allowed in terms of section 5 of the Foreign Exchange
Management Act, 1999, read with Government of India Notification No.GSR 381(E)
dated May 3, 2000 as amended from time to time.
2 . This Master Circular
consolidates the existing instructions on the subject of 'Miscellaneous Remittances
from India - Facilities for Residents' at one place. The list of underlying
circulars/notifications is set out at Annex -1 .
3. As recommended by the Committee
on Procedures and Performance Audit on Public Services (CPPAPS) (Chairman :
Shri S. S. Tarapore) set up by the Reserve Bank, this Master Circular is being
issued with a sunset clause of one year. This circular will stand withdrawn
on July 1, 2005 and be replaced by an updated Master Circular on the subject.
Yours faithfully,
Grace Koshie
Chief General Manager
Annex - 1
List of circulars, which have
been consolidated in this Master Circular .
Miscellaneous Remittances from India
- Facilities for Residents
Sl. No.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/3 · issued 01 Jul 2004. The plain-English explanation above is BankPulse’s own independent summary.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI consolidated all instructions on miscellaneous remittances for residents into one Master Circular, issued July 1, 2004, with a sunset clause of one year. It covers release of foreign exchange for travel, medical treatment, small value remittances, and the Liberalised Remittance Scheme, guiding authorised dealers under FEMA.
Q2. Who does this circular apply to?
All Authorised Dealers in Foreign Exchange, Residents seeking to remit funds abroad for current account transactions, Bank compliance and operations teams handling foreign exchange
Q3. What is the first thing you should do about it?
Update internal manuals and staff training materials to reference this Master Circular as the primary source for resident remittance rules.
Update internal manuals and staff training materials to reference this Master Circular as the primary source for resident remittance rules.
Ensure all foreign exchange releases for travel, medical treatment, and other purposes comply with the consolidated instructions.
Prepare for the sunset clause by planning to adopt the updated Master Circular expected by July 1, 2005.
Verify that documentation and endorsement on passport procedures match the circular's requirements.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All Authorised Dealers in Foreign Exchange, Residents seeking to remit funds abroad for current account transactions, Bank compliance and operations teams handling foreign exchange), your first concrete step on “Master Circular: Miscellaneous Remittances from India – Facilities for Residents” is: “Update internal manuals and staff training materials to reference this Master Circular as the primary source for resident remittance rules.” (RBI issued this 01 Jul 2004).
Circular: RBI/2004-05/3 -- Master Circular: Miscellaneous Remittances from India – Facilities for Residents
Issued: 01 Jul 2004
Action required: Update internal manuals and staff training materials to reference this Master Circular as the primary source for resident remittance rules.
Action required: Ensure all foreign exchange releases for travel, medical treatment, and other purposes comply with the consolidated instructions.
Action required: Prepare for the sunset clause by planning to adopt the updated Master Circular expected by July 1, 2005.
Action required: Verify that documentation and endorsement on passport procedures match the circular's requirements.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · AI fact-check pending · under the editorial review of our expert review panel · decoded & published by BankPulse · 21 Jun 2026, 10:24 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2016&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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