Cir. No.39/1998-RB, dt. 16/10/1998
- Document type
- Circular
- Dated
- Category
- ADMA (Series) Circular
International Credit Cards
RESERVE BANK OF INDIA
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
To,
All Authorised Dealers in Foreign Exchange
Dear Sir,
International Credit Cards
Attention of authorised dealers is drawn to paragraph 8A.2 of the Exchange Control Manual regarding International Credit Cards (ICCs). At present the facility of ICCs is available to residents visiting foreign countries and they can utilise such cards to the extent of their entitlement of foreign exchange for such visits. It has now been decided to relax the conditons for holding ICCs by residents. Accordingly, any person resident in India may hold ICC which can be used by him either in India or abroad subject to the following conditions:
(i) Drawals against the credit card should be restricted to the foreign exchange entitlement of the cardholder for travel abroad for various purposes or for making personal payments like subscription etc. as may be permissible under the extant exchange control regulations. The entitlement should be ascertained by the cardholder from the authorised dealer through whom the reimbursement is to be made. Reimbursement to the card issuing establishments will have to be made through authorised dealers, as usual, who will satisfy themselves that the utilisation abroad is in accordance with the exchange control regulations and are covered by the powers delegated to them.
(ii) Residents are also free to use such cards for payments within India
(iii) Sale of foreignn currency notes out of exchange entitlement of the travellers going abroad (under BTQ or otherwise) would be governed by the extant regulations, and would be subject to the applicable ceilings.
2. Returning Indians maintaining Resident Foreign Currency Accounts in India or Foreign Currency Accounts abroad can hold International Credit Cards freely without any end use restrictions, provided reimbursement against drawals in foreign exchange from the credit cards is made by debit to their foreign currency accounts.
3. As a convenience to non-resident Indians Reserve Bank has removed all restrictions on NRIs nominating their relatives or other resident Indians as additional card holders against their own foreign currency account held overseas. It will now be in order for residents being nominated as additional card holders by non-residents without the approval of Reserve Bank . In such cases the reimbursements of claims against such credit cards held by residents should be provided by the non-residents concerned from their foreign currency accounts held abroad. No remittance from India will be permitted in settlement of claims against such additional credit cards.
4. Authorsied dealers may bring the contents of this circular to the notice of their concerned constituents.
5. The directions contained in this circular have been issued under Section 73(3) of the Foreign Exchange Regulation Act,1973 (46 of 1973) and any contravention or non-observance thereof is subject to the penalties prescribed under the Act.
Yours faithfully,
KHIZER AHMED,
Chief General Manager,