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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, and in consultation with the Reserve Bank, the Central
Government having considered it necessary in the public interest,
makes the following rules, namely :— |
| 1. |
Short
title and commencement.
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(1)
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These rules may be called the Foreign Exchange Management
(Current Account Transactions) Rules, 2000.
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(2)
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They shall come into effect on the 1st day of June, 2000.
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| 2. |
Definitions.
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In
these rules, unless the context otherwise requires,—
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(a)
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“Act”
means the Foreign Exchange Management Act, 1999 (42 of 1999); |
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(b)
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“Drawal” means drawal of foreign exchange
from an authorised person and includes opening of Letter of
Credit or use of International Credit Card or International
Debit Card or ATM Card or any other thing by whatever name called
which has the effect of creating foreign exchange liability;
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(c)
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“Schedule”
means a schedule appended to these rules;
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(d)
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the words and expressions not defined
in these rules but defined in the Act shall have the same meanings
respectively assigned to them in the Act. |
| 3. |
Prohibition
on drawal of Foreign Exchange.
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Drawal of foreign exchange by any person for the following
purpose is prohibited, namely :
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(a)
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a
transaction specified in the Schedule I; or
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(b)
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a travel
to Nepal and/or Bhutan; or
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(c)
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a
transaction with a person resident in Nepal or Bhutan :
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Provided that the
prohibition in clause (c) may be exempted by RBI subject
to such terms and conditions as it may consider necessary to
stipulate by special or general order. |
| 4. |
Prior
approval of Government of India.
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No person shall draw foreign exchange for a transaction included
in the Schedule II without prior approval of the Government of India :
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Provided that this
Rule shall not apply where the payment is made out of funds
held in Resident Foreign Currency (RFC) Account [***]5
of the remitter.
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| 5. |
Prior
approval of Reserve Bank.
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No person shall draw foreign
exchange for a transaction included in the Schedule III without
prior approval of the Reserve Bank : |
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Provided that this
Rule shall not apply where the payment is made out of funds
held in Resident Foreign Currency (RFC) Account[***]5of the remitter.
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6.4 |
(1) |
Nothing contained in rule 4 or rule
5 shall apply to drawal made out of funds held in Exchange Earners’
Foreign Currency (EEFC) account of the remitter. |
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(2) |
Notwithstanding anything contained
in sub-rule (1), restrictions imposed under rule 4 or rule 5
shall continue to apply where the drawal of foreign exchange
from the Exchange Earners’ Foreign Currency (EEFC) account is
for the purpose specified in items 10 and 11 of Schedule II,
or items, 3, 4, 11, 16 and 17 of Schedule III as the case may
be. |
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7.
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Editor'S
Note: Para 7
inserted vide Notification no. GSR 33(E) dated Jan. 15, 2003
NOTIFICATION ON RBI WEBSITE AWAITED
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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(See
Rule 3)
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| 1. |
Remittance out of
lottery winnings.
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| 2. |
Remittance of
income from racing/riding, etc., or any other hobby.
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| 3.2 |
Remittance for purchase
of lottery tickets, banned/prescribed magazines, football pools,
sweepstakes etc. |
| 4. |
Payment of commission on
exports made towards equity investment in Joint Ventures/Wholly
Owned Subsidiaries abroad of Indian companies. |
| 5. |
Remittance of
dividend by any company to which the requirement of dividend balancing
is applicable.
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6.16
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EDITORS
NOTE: Substituted vide Notification No. GSR 397(E) dated May 1,
2003. NOTIFICATION ON RBI WEBSITE AWAITED
Payment
of commission on exports under Rupee State Credit Route, except commission up
to 10% of invoice value of exports of tea and tobacco
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7. |
Payment
related to “Call Back Services” of telephones.
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8.7 |
Remittance
of interest income on funds held in Non-resident Special Rupee
Scheme a/c. |
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Schedule II
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(See
Rule 4)
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Purpose of Remittance
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Ministry/Department
of Govt. of India whose approval is required
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| 1. |
Cultural Tours
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Ministry
of Human Resources Development (Department of Education and
Culture)
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| 2. |
3Advertisement
in foreign print media for the purposes other than promotion
of tourism, foreign investments and international bidding (exceeding
US$ 10,000) by a State Government and its Public Sector Undertakings.
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Ministry
of Finance, Department of Economic Affairs]
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| 3. |
Remittance of freight of vessel charted by a PSU
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Ministry
of Surface Transport (Chartering Wing)
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| 4. |
Payment of import by a Govt.
Department or a PSU on c.i.f. basis (i.e., other than f.o.b. and
f.a.s. basis)
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Ministry
of Surface Transport (Chartering Wing)
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| 5. |
Multi-modal transport operators making remittance to
their agents abroad
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Registration
Certificate from the Director General of Shipping
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| 6. |
Remittance of hiring charges of transponders
by
17
(a) TV
Channels
(b) Internet service providers
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Ministry
of Finance (Department of Economic Affairs).
Ministry of Information and
Broadcasting
Ministry of Communication and Information Technology.
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| 7. |
Remittance of container detention charges exceeding the
rate prescribed by Director General of Shipping
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Ministry
of Surface Transport (Director General of Shipping)
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| 8. |
Remittances under technical collaboration agreements
where payment of royalty exceeds 5% on local sales and 8% on
exports and lump sum payment exceeds US $ 2 million
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Ministry
of Industry and Commerce
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| 9. |
Remittance of prize money/sponsorship of sports activity
abroad by a person other than International/National/ State
Level sports bodies, if the amount involved exceeds US $ 100,000
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Ministry
of Human Resource Development (Department of Youth Affairs and
Sports)
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| 10 . |
[***]
18 |
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| 11. |
Remittance for membership of P & I Club
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Ministry
of Finance (Insurance Division)
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12. |
Hiring
of transponders by TV Channels and internet services
providers remittance of hiring of transponders.
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Ministry
of Information & Broadcasting
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