Ok...Here is my last attempt at explaining since you take 'Remittances From India' so literally
Inflow of dollars that get converted into INR increases RBI's foreign currency reserves.....
Now if you were remitting dollars for whatever reasons that means RBI is giving Foreign currency from its reserves in exchange for INR....
This where the various policy rules of RBI affect what one can or cant remit.
If I am allowed a foreign currency account and somebody gifts me 10k USD and I choose to keep it inmy foreign currency account... as USD ....this does not affect RBI's reserves when it comes in or when it goes out.
Therefore, what is stopping anybody from funding their FX accont from this considering it has no bearing on RBI's foreign currency reserves.
SavantGarde
Inflow of dollars that get converted into INR increases RBI's foreign currency reserves.....
Now if you were remitting dollars for whatever reasons that means RBI is giving Foreign currency from its reserves in exchange for INR....
This where the various policy rules of RBI affect what one can or cant remit.
If I am allowed a foreign currency account and somebody gifts me 10k USD and I choose to keep it inmy foreign currency account... as USD ....this does not affect RBI's reserves when it comes in or when it goes out.
Therefore, what is stopping anybody from funding their FX accont from this considering it has no bearing on RBI's foreign currency reserves.
SavantGarde