# Capital Account Transactions — Schedule I: Permissible CAATs for a PRII
FEM (Permissible Capital Account Transactions) Regulations, 2000 — Section 6 of FEMA
All CAATs are prohibited unless expressly permitted. Schedule I lists the CAATs permitted to a Person Resident in India (PRII).
## Table — Permitted CAATs and Their Limits
| Permissible Transaction for PRII | Limit |
|---|---|
| Hold/own/transfer/invest in foreign currency, foreign security or IPOI acquired when the person was a PROI or inherited from a PROI (including income earned and sale proceeds) | No limit/restriction — freely usable for any payment/investment outside India without RBI approval |
| Payment for amortization of loan (loan instalment repayment) | Foreign exchange can be drawn without limit/restriction |
| Payment due to depreciation of direct investment in ordinary course of business | Forex drawable without limit |
| Maintenance of foreign currency account | Can be opened/maintained by PRII when he was PROI |
| Sale or transfer of investments outside India | Subject to specific regulations |
| Foreign currency loans raised from outside India | Subject to specific regulations |
| Guarantee in favour of a PROI | Subject to specific regulations |
| Investment in foreign security | Forex can be drawn up to US$ 2,50,000 per FY (or higher limit prescribed in specific regulations). Combined with family only if co-owner/partner. Same US$ 2,50,000 is the combined limit for these CAATs and Schedule III CUATs. |
| Investment in IPOI | Same limit as above |
| Loan given to a PROI | Same limit as above |
| Taking insurance policy from an insurance company outside India | Same limit as above |
## The US$ 2,50,000 Combined Limit — Crucial Point
When reading the four CAATs (investment in foreign security, IPOI, loans to PROI, insurance abroad) along with Schedule III CUATs, all share a combined US$ 2,50,000 LRS bucket per FY.
- Once consumed by any of these uses, the remaining limit shrinks accordingly.
- Family consolidation is permitted only if family members are co-owners/partners.
## Restrictions Even for Permitted CAATs
### (i) FATF Non-Cooperative Countries
The permissible CAATs cannot be entered into with countries or territories notified as non-cooperative by the Financial Action Task Force (FATF).
### (ii) DPRK Bar
A PRII shall not undertake any CAAT with a citizen/resident of (or an entity incorporated in) the Democratic People's Republic of Korea (North Korea).
## Memory Hooks
- "What was yours when you were a PROI stays yours": Assets acquired/inherited while a PROI can be freely held, used and remitted without limit.
- The Big Four LRS CAATs share the US$ 2,50,000 bucket with Schedule III CUATs: Foreign Security, IPOI, Loan to PROI, Insurance from abroad.
- Two black-listed counterparties: FATF non-cooperative jurisdictions and DPRK.