December
10, 2008
To
All Authorised Dealers
Category I & II and Full Fledged Money Changers
Madam
/ Sir,
Foreign Exchange Management Act, 1999 –
Foreign
Travel – Mode of payment in Rupees
Attention of
Authorised Dealers Category I & II and Full Fledged Money Changers (FFMCs)
is invited to paragraph A.10 of the Annexure to A. P. (DIR Series) Circular No.19
dated October 30, 2000, in terms of which Authorised Dealers may accept payment
in cash up to Rs. 50,000 (Rupees Fifty Thousand only) against sale of foreign
exchange for travel abroad (for private visit or for any other purpose). Wherever
the sale of foreign exchange exceeds the amount equivalent to Rs.50,000, the payment
must be received only by a -
(i) crossed cheque drawn on
the applicant’s bank account
or
(ii)
crossed cheque drawn on the bank account of the firm/company sponsoring the visit
of the applicant
or
(iii) Banker’s
cheque / Pay Order / Demand Draft.
2. With a view to provide
flexibility in the mode of payment against sale of foreign exchange, in addition
to the payment by Rupees / through crossed cheque / Banker's cheque / Pay order
/ Demand draft, Authorised Dealers Category I & II and FFMCs may also accept
the payments made by the traveller through debit cards / credit cards / prepaid
cards for travel abroad (for private visit or for any other purpose) provided
-
(i) KYC / AML guidelines are complied with,
(ii)
sale of foreign currency / issue of foreign currency travellers' cheques is within
the limits (credit / prepaid cards) prescribed by the bank,
(iii)
the purchaser of foreign currency / foreign currency travellers' cheque and the
credit / debit / prepaid card holder is one and the same person.
3.
Authorised Dealers Category I & II and Full Fledged Money Changers may bring
the contents of the circular to the notice of their constituents and customers
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) and is without prejudice to permissions / approvals,
if any, required under any other law.
Yours faithfully,
(Salim
Gangadharan)
Chief General Manager-in-Charge