On 16-5-2023, the Ministry of Finance notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023 to amend the Foreign Exchange Management (Current Account Transactions) Rules, 2000. The provisions came into force on 16-5-2023.
Rule 7 relating to Use of International Credit Card while outside India has been omitted. Under this rule, the mandatory provisions of Rule 5 were exempted for the users of International Credit Card for making payments outside India.
Note: Rule 5 provides that
• For withdrawing any foreign exchange for a transaction included in Schedule III, prior approval of Reserve Bank of India is required.
• Exemption: payments made out of funds held in Resident Foreign Currency Account of the remitter.
Now, the use of International Credit Card will be governed by Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000.