January 24, 2003

A.P.(DIR Series) Circular No.73

To
All Authorised Dealers in Foreign Exchange

Madam/Sir,

Attention of authorised dealers is invited to the Government of India Notification No.G.S.R.381(E) dated 3^rd May 2000, notifying the Foreign Exchange Management (Current Account Transactions) Rules, 2000, as amended vide Notification No.S.O.301(E) dated 30^th 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 15^th January 2003 (copy enclosed) amending the Notification No.G.S.R.381(E) dated 3^rd 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,

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)

New Delhi, the 15^th January, 2003

G.S.R.33(E) - 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 :-

Foot note : The Principal rules were published in the Official Gazette vide G.S.R.381(E) dated 3^rd May, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide S.O.301(E) dated 30^th March, 2001.

[F.No.1/5/EC/2000 Vol.II]
SANJIVA MISRA, Jt. Secy.