Non Resident Indians (NRIs)/Persons of Indian Origin (PIOs) can now settle the dues of their international credit cards out of funds they hold in their Non-resident (Ordinary) Rupee (NRO) Account. The NRIs/PIOs will be able to settle credit card dues out of their NRO funds for the credit cards issued by the banks in India and to the extent of the limit fixed on their cards by the issuing bank.

Earlier, NRIs/PIOs were required to settle charges on the use of their international credit card only out of inward remittances or balance held in their Non-Resident (External) Rupee (NRE) Accounts/Foreign Currency (Non-Resident) {FCNR(B)} Accounts (Banks).

The Reserve Bank of India has allowed the facility of settlement of credit card charges out of funds held by NRIs/PIOs in their Non-Resident (Ordinary) Rupee Account with a view to liberalising the exchange control regulations and providing additional facility to them.

The Reserve Bank of India has already issued instructions to this effect to banks on December 9, 2002.