Zee Media Bureau
New Delhi: The Union Cabinet on Thursday approved amendments to FDI policy on investments by NRIs, PIOs and OCIs for greater forex remittances.
Encouraged by foreign exchange reserves touching record levels, the RBI had in February doubled the annual overseas investment ceiling for individuals to USD 250,000.
In view of the worsening current account deficit and a volatile rupee, the RBI had in August 2013 reduced the ceiling from USD 200,000 to USD 75,000 per person in a year under the LRS. Consequently, with improvement in forex situation, it was raised to USD 125,000 in June 2014.
Country's foreign exchange reserves increased by USD 262.4 million to touch a new life-time high of USD 352.131 billion in the week to May 8 on account of rise in foreign currency assets.
Foreign currency assets, expressed in dollar terms, include the effect of appreciation and depreciation of non-US currencies such as the euro, pound and the yen, held in the reserves.
With Agency Inputs