CIR. NO.73/2002-03-RB, DT. 24/01/2003
- Document type
- Circular
- Reference no.
- C
- Dated
- Category
- A.P. (DIR Series) Circulars
Foreign Exchange Management Act, 1999-Current Account Transactions-Use of International Credit Cards abroad
Foreign Exchange Management Act, 1999-Current Account Transactions-Use of International Credit Cards abroad
2. Government of India has since issued Notification No.G.S.R.33(E) dated 15th January 2003 (copy enclosed) amending the Notification No.G.S.R.381(E) dated 3rd May 2000. Authorised dealers are, accordingly, advised that the restrictions contained in Rule 5 of the Foreign Exchange Management (Current Account Transactions) Rules, 2000, requiring prior approval of Reserve Bank, will not be applicable for use of International Credit Cards (ICCs) by residents for making payment towards expenses, while on a visit outside India, to the extent of the limit of the card. Further, while no separate monetary/item-wise ceiling is imposed by Reserve Bank for use of ICCs under Foreign Exchange Management Act, 1999, the restriction on the use of ICCs for purchase of prohibited items, like lottery tickets, banned or proscribed magazines, participation in sweep-stakes, payment for call-back services, etc., would continue.
3. Authorised Dealers may bring the contents of this circular to the notice of their constituents 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).
Yours faithfully,
Grace Koshie
Chief General Manager
Extraordinary
Part II-Section 3-Sub-Section (I)
Published by Authority
New Delhi, Thursday, January 16, 2003/Pausa 26, 1924
No.23 Ministry of Finance and Company Affairs,
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 15th January, 2003
1. Short title and commencement -
(1) These rules may be called the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2003.
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the foreign Exchange Management (Current Account Transactions) Rules, 2000, after rule 6, the following rule shall be inserted, namely :-
"7. Use of International Credit Card while outside India
Nothing contained in rule 5 shall apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India".
Foot note : The Principal rules were published in the Official Gazette vide G.S.R.381(E) dated 3rd May, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide S.O.301(E) dated 30th March, 2001.
[F.No.1/5/EC/2000 Vol.II]
SANJIVA MISRA, Jt. Secy.