AP (DIR Series) (2001-2002) Circular No. 53, dated 27-6-2002
Attention of Authorised Dealers is invited to
paragraph 3 of AP (DIR Series) Circular No. 19 dated October 30, 2000
clarifying that the term “currency”, inter alia, includes Credit Cards,
ATM Cards and Debit Cards etc. and all the rules, regulations made and
directions issued under the Foreign Exchange Management Act apply to Credit
Cards, ATM cards, Debit Cards etc. also.
2. It is
clarified that :—
i. International Credit Cards can be used
on internet for any purpose for which exchange can be purchased from an
authorised dealer in India, e.g. for import of books, purchase of
downloadable softwares or import of any other item permissible under EXIM
Policy.
ii. International Credit Cards cannot be
used on internet or otherwise for purchase of prohibited items, like lottery
tickets, banned or proscribed magazines, participation in sweepstakes, payment
for call-back services etc., since no drawal of foreign exchange is permitted
for such items/activities.
iii. There is no aggregate monetary ceiling
separately prescribed for use of International Credit Cards through internet.
It is further clarified that Debit Cards and ATM Cards
can also be used for any purpose for which foreign exchange can be purchased
from an authorised dealer in India.
3. Attention of authorised dealers is also
invited to item (iii) of Regulation 4 of the Reserve Bank Notification
No. 14/2000-RB dated 3rd May, 2000 in terms of which payment received in rupees
from credit card servicing banks in India against the charge slip signed by the
buyer is a permissible method for receipt of payment for exports made out of
India. This permission presumes that the importer client had decided to make payment
when he was on a visit of India. It has now been decided to permit authorised
dealers to accept payment by debit to credit card for exports made out of India
irrespective of whether the importer client is on a visit to India or not.
Accordingly, it is clarified that authorised dealers may receive payment for
exports made out of India by debit to the credit card of an importer, where the
reimbursement from the card issuing bank/organisation will be received in
foreign exchange.
4. Authorised Dealers may bring the
contents of this circular to the notice of their constituents concerned.
5. 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).