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CBDT exempts cash withdrawal by authorised dealer and its franchise agent and sub-agent, and Full-Fledged Money Changer licensed by RBI

S.O. 3719(E).—In exercise of the powers conferred by clause (v) of proviso to Section 194 N of the Income-tax Act, 1961 (43 of 1961), the Central Government, after consultation with the Reserve Bank of India (RBI), hereby specifies,-

(a) the authorised dealer and its franchise agent and sub-agent; and

(b) Full-Fledged Money Changer (FFMC) licensed by the Reserve Bank of India and its franchise agent;

maintaining a separate bank account from which withdrawal is made only for the purposes of,-

(i) purchase of foreign currency from foreign tourists or non-residents visiting India or from resident Indians on their return to India, in cash as per the directions or guidelines issued by Reserve Bank of India; or

(ii) disbursement of inward remittances to the recipient beneficiaries in India in cash under Money Transfer Service Scheme (MTSS) of the Reserve Bank of India;

and a certificate is furnished by the authorised dealers and their franchise agent and sub-agent, and the Full Fledged Money Changers (FFMC) and their franchise agent to the bank that withdrawal is only for the purposes specified above and the directions or guidelines issued by the Reserve Bank of India have been adhered to.

Explanation – For the purposes of this notification, “authorised dealer” means a person authorised as an authorised dealer under sub-section (1) of Section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999).

2. The notification shall be deemed to have come into force with effect from the 1st day of September, 2019.


Reserve Bank of India

[Notification dt. 15-10-2019]

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