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Foreign Exchange Management Act, 1999 � Current Account Transactions
� Use of International Credit Cards abroad
A.P.
(DIR Series) Circular No. 73 dated 24th January 2003
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 (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).
The
Gazette of India 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
dated 15th January 2003
In
exercise of the powers conferred by Section 5 and Sub-section (1) and clause (a)
of Sub-section (2) of Section 46 of the Foreign Exchange Management Act, 1999
(42 of 1999), and in consultation with Reserve Bank, the Central Government
having considered it necessary in the public interest, makes the following
amendments in the Foreign Exchange Management (Current Account Transactions)
Rules, 2000, namely: -
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".
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