On 30-6-2023, the Ministry of Finance further amended the Foreign Exchange Management (Current Account Transactions) Rules, 2000. It will be deemed to have been came into effect on 16-5-2023.
Rule 7 has been re-inserted relating to Use of International Credit Card while outside India.
Earlier, Rule 7 was omitted vide Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023.
Now, it says that the Provisions of Rule 5 will 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.
It means that for withdrawing any foreign exchange for a transaction included in Schedule III, prior approval of Reserve Bank of India will be required.
Explanatory Memorandum- The retrospective effect to the present notification will not affect anyone adversely.