Current Account Transactions - Use of International Credit Cards abroad

A.P. (DIR Series) (2002-2003) Circular No. 73, dated 24-1-2003, issued by Exchange Control Department, RBI

Attention of authorised dealers is invited to the Government of India Notification No. G.S.R. 381(E) dated 3rd May, 2000, notifying the Foreign Exchange Management (Current Account Transactions) Rules, 2000, as amended vide Notification No. S.O. 301(E) dated 30th March, 2001, in terms of which drawal of exchange for certain current account transactions has been prohibited and restrictions have been placed on certain other transactions.

2. Government of India has since issued Notification No. G.S.R. 33(E) dated 15th January, 2003 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).