RBI Regulatory Guidelines
Meta Forex Private Limited is a Full Fledged Money Changer (FFMC) operating under an Authorized Person — Category II license granted by the Reserve Bank of India (RBI). All transactions on this platform are governed by the Foreign Exchange Management Act (FEMA), 1999. Resident Indian individuals may remit up to USD 250,000 per Financial Year under the Liberalised Remittance Scheme (LRS). Physical foreign currency notes exported abroad are capped at USD 3,000 per trip. Tax Collected at Source (TCS) applies at 5–20% on specific remittance categories as mandated by the Central Board of Direct Taxes (CBDT).
1. FEMA & Compliance Architecture
Meta Forex Private Limited operates strictly as an Authorized Person Category II (Full Fledged Money Changer) under rigorous licensing granted by the Reserve Bank of India (RBI). Every single transaction processed on our digital applications and physical counters is legally governed by the Foreign Exchange Management Act (FEMA), 1999.
2. Liberalised Remittance Scheme (LRS)
The LRS establishes a firm regulatory ceiling on outward capital flow for Resident Individuals.
- Maximum Limit: Authorized individuals are legally restricted to remit up to USD 250,000 (or its equivalent in other foreign currencies) per Financial Year (April-March).
- Permitted Uses: LRS encompasses capital/current account transactions including Private Visits (Tourism), Medical Treatment, Employment, Studying Abroad, Maintenance of Close Relatives, and Gift/Donations.
- Prohibited Uses: Remittances for trading in foreign exchange margins, purchase of lottery tickets, sweepstakes, or capital account remissions to FATF non-cooperative countries are strictly banned.
3. Tax Collected at Source (TCS) Mandates
As per the Finance Act dictates introduced by the Central Board of Direct Taxes (CBDT), Meta Forex is obligated to instantly deduct TCS on specific foreign exchange remissions.
3.1 Overseas Tour Packages
Acquisitions of foreign tour packages, flights and ground arrangements purchased combined, will attract a 5% TCS calculation up to INR 7 Lakhs, and 20% beyond the threshold.
3.2 Educational Financing
Remittances explicitly for foreign education sourced via a registered financial loan from an authorized institution carry a reduced TCS load of 0.5% (above INR 7 Lakhs).
3.3 Other Remittances
General outward remittances (Gifts, Investments, Leisure outside packages) above INR 7 Lakhs incur a mandatory 20% TCS extraction.
4. Essential Documentation (KYC) Rules
The RBI categorizes foreign exchange as high-risk telemetry. Therefore, comprehensive Know Your Customer (KYC) documentation is unconditionally enforced.
We are required by law to view the original physical copies of Passports and Pan Cards during all outward remittance operations. We mandate that the routing bank account perfectly match the Primary Remitter's name; third-party payments are illegal and instantly flagged.
5. Physical Note Constraints
For individuals travelling abroad, the maximum allowance of foreign currency notes they can carry per visit is limited to USD 3,000 (equivalent). The remaining permitted foreign exchange balance must be taken in the form of Prepaid Forex Cards, Travelers Cheques, or Banker's Drafts.
Let's Talk Global.
Have questions about live LRS exchange rates, corporate telegraphic transfers, or Schengen visa processing? Reach out to Meta Forex, Bangalore's premier RBI-Authorized currency exchange provider.