Indian citizens can't spend more than $10,000 abroad in a financial year?

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indy1811

Herald
Just got this mailer from Citibank. What are the rules exactly? Can somebody with a little more knowledge explain this?

Dear Customer,
Thank you for banking with Citibank.
We are pleased to introduce an additional security feature on your Citibank Debit Card for international usage. Effective November 30, 2013, the limit for international usage on your debit card will be set at US $1500, in a financial year. This limit will cover usage at ATMs, purchases at merchant locations and international online purchases.
We wish to inform you that this limit on your debit card is based upon the RBI's regulations for "Security and Risk Measures for Electronic Payment Transactions".
To increase your international limit up to a maximum of US $10,000, you can call our 24x7 Citiphone helpline or send us your request online by visiting www.citibank.com/india with your Internet Password (IPIN) and clicking on the 'Your Queries' link under 'Banking' tab on the left panel.
We would also like to inform you that, under the current foreign exchange regulations, a person resident in India can spend only up to US $10,000 (or its equivalent) at an aggregate level, in one financial year during one or more private visits to any country. Accordingly, please ensure that your international spends in a financial year are within the stipulated limit of US $10,000.
Click to expand...

http://www.online.citibank.co.in/po...uction-Mailer-Portal.htm?eOfferCode=PDLRNEMLR

How do rich guys get round this rule?
 
The only way rbi can track this is through your return filed with all details. Either you divide the amount between the spouse, other way round is if it's your own business, you can show business trip and promotion expense. And if your wife is a partner or director, it becomes all the more easy.
 
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