remittance for participation in lottery, etc., schemes
A.P. (DIR Series) (2001-2002) Circular No. 2, dated 27-7-2001
It
has come to the notice of the Reserve Bank that certain overseas organisations
have been advising individuals in India that they have won prizes in lotteries
etc. and that they should arrange to remit some amount in US Dollars, as fees.
2. Attention
of the authorised dealers is drawn to Item 3 of Schedule I to the Government of
India Notification G.S.R. 381(E) dated May 3, 2000, which prohibits, inter
alia, remittances for the purchase of lottery tickets. Authorised dealers are,
therefore, advised to suitably inform the members of public that remittance in
any form towards participation in lottery schemes are prohibited under Foreign
Exchange Management Act, 1999. Further, these restrictions are also applicable
to remittances for participation in lottery like schemes functioning under
different names like money circulation scheme, or remittance for the purpose of
securing prize money/awards etc.
3. 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). Any
contravention or non-observance of these directions is subject to the penalties
prescribed under the Act.