CIR. NO. 40/2008-09-RB, DT. 10/12/2008
- Document type
- Circular
- Dated
- Category
- A.P. (DIR Series) Circulars
FEMA, 1999-Foreign Travel-Mode of payment in Rupees
FEMA, 1999-Foreign Travel-Mode of payment in Rupees
(i) crossed cheque drawn on the applicants bank account
or
(ii) crossed cheque drawn on the bank account of the firm/company sponsoring the visit of the applicant
or
(iii) Bankers cheque / Pay Order / Demand Draft.
2. With a view to provide flexibility in the mode of payment against sale of foreign exchange, in addition to the payment by Rupees / through crossed cheque / Banker's cheque / Pay order / Demand draft, Authorised Dealers Category I & II and FFMCs may also accept the payments made by the traveller through debit cards / credit cards / prepaid cards for travel abroad (for private visit or for any other purpose) provided -
(i) KYC / AML guidelines are complied with,
(ii) sale of foreign currency / issue of foreign currency travellers' cheques is within the limits (credit / prepaid cards) prescribed by the bank,
(iii) the purchaser of foreign currency / foreign currency travellers' cheque and the credit / debit / prepaid card holder is one and the same person.
3. Authorised Dealers Category I & II and Full Fledged Money Changers may bring the contents of the circular to the notice of their constituents and customers concerned.
4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge