RBI has reduced the amount that resident individuals could have remitted abroad for the purpose of any permitted transactions from USD 200,000 per financial year to USD 75,000 per financial year. The amount was to be used for any permitted current or capital account transactions or a combination of both.
Further this Scheme will not allow for acquisition of immoveable property abroad, whether directly or indirectly or for any prohibited or illegal activities such as margin money trading, lottery etc.
This limit of USD 75,000 per financial year is also applicable for gifts by resident Indians to NRI close relatives and loans by residents to NRI close relatives.
Upto now overseas direct investment was allowed only to corporates. But now even resident individuals are allowed to invest abroad upto the said limit of USD 75,000 per financial year in bonafide business activities. So they can set up Joint ventures or wholly owned subsidiaries abroad.