(1) These rules may be called the Foreign Exchange Management (Current Account Transactions) Rules, 2000.

(2) They shall come into effect on the 1st day of June, 2000.

In these rules, unless the context otherwise requires,

(a) Act means the Foreign Exchange Management Act, 1999 (42 of 1999);

(b) 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;

(c) Schedule means a schedule appended to these rules;

(d) 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.

Drawal of foreign exchange by any person for the following purpose is prohibited, namely:

(a) a transaction specified in the Schedule I; or

(b) a travel to Nepal and/or Bhutan; or

(c) a transaction with a person resident in Nepal or Bhutan:

Provided that the prohibition in clause (c) may be exempted by RBI subject to such term and conditions as it may consider necessary to stipulate by special or general order.

No person shall draw foreign exchange for a transaction included in the Schedule II without prior approval of the Government of India:

Provided that this Rule shall not apply where the payment is made out of funds held in Resident Foreign Currency (RFC) Account 2[* * *] of the remitter.

No person shall draw foreign exchange for a transaction included in the Schedule III without prior approval of the Reserve Bank:

Provided that this Rule shall not apply where the payment is made out of funds held in Resident Foreign Currency (RFC) Account 3[* * *] of the remitter.

4[6. (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.

(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.]

5[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.]

6[Transactions which are Prohibited

(See Rule 3)]

1. Remittance out of lottery winnings;

2. Remittance of income from racing/riding etc. or any other hobby;

3. 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;

7[6. Payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco;]

7. Payment related to Call Back Services of telephones;

8. Remittance of interest income on funds held in Non-Resident Special Rupee Scheme a/c.

8[Transactions which require prior approval of the Central Government

(See Rule 4)]

(See Rule 5)

1. 14[* * *]

15[2. Release of exchange exceeding US $ 10,000 or its equivalent in one financial year for one or more private visits to any country (except Nepal and Bhutan).

3. Gift remittance exceeding US $ 5000 per financial year per remitter or donor other than resident individual;]

16[4. (i) Donation exceeding US $ 5000 per financial year per remitter or donor other than resident individual;

(ii) Donations by corporate, exceeding one per cent of their foreign exchange earnings during the previous three financial years or US $ 50,00,000, whichever is less, for,

(a) creation of Chairs in reputed educational institutes;

(b) to funds (not being an investment fund) promoted by educational institutes; and

(c) to a technical institution or body or association in the field of activity of the donor company.

Explanation. For the purposes of these Item Numbers 3 and 4, remittance of gift and donation by resident individuals are subsumed under the Liberalised Remittance Scheme.]

5. Exchange facilities exceeding 17[US$ 1,00,000] for persons going abroad for employment;

6. Exchange facilities for emigration exceeding 18[US$ 1,00,000] or amount prescribed by country of emigration;

19[7. Remittance for maintenance of close relatives abroad,

(i) exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions) of a person who is resident but not permanently resident in India and is a citizen of a foreign state other than Pakistan.

(ii) exceeding 20[US$ 1,00,000] per year recipient, in all other cases.

Explanation: For the purpose of this item, a person resident in India on account of his 21[employment or deputation of] a specified duration (irrespective of length thereof) or for a specific job or assignment, the duration of which does not exceed three years, is a resident but not permanently resident;]

8. Release of foreign exchange, exceeding US$ 25,000 to a person, irrespective of period of stay, for business travel, or attending a Conference or specialised training or for maintenance expenses of a patient going abroad for medical treatment or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/check-up;

9. Release of exchange for meeting expenses for medical treatment abroad exceeding the estimate from the doctor in India or hospital/doctor abroad;

10. Release of exchange for studies abroad exceeding the estimates from the institution abroad or 22[US$ 1,00,000] 23[per academic year], whichever is higher;

24[11. Commission, per transaction, to agents abroad for sale of residential flats or commercial plots in India exceeding USD 25,000 or 5% of the inward remittance whichever is more.]

12. 25[* * *]

13. 26[* * *]

14. 27[* * *]

28[15. Remittances exceeding US $ 1,00,00,000 per project, for any consultancy services in respect of infrastructure projects and US $ 10,00,000 per project for other consultancy services procured from outside India.

Explanation. For the purposes of this item number infrastructure project is those related to

(i) Power,

(ii) Telecommunication,

(iii) Railways,

(iv) Roads including bridges,

(v) Sea port and airport,

(vi) Industrial parks, and

(vii) Urban infrastructure (water supply, sanitation and sewage).]

16. 29[* * *]

30[17. Remittances exceeding five per cent of the investment brought into India or US $ 1,00,000 whichever is higher, by an entity in India by way of reimbursement of pre-incorporation expenses.]

18. 31[* * *]

1. Ministry of Finance (Deptt. of Economic Affairs), Noti. No. G.S.R. 381(E), dated 3-5-2000, published in the Gazette of India, Extra., Part II, Section 3(i), dated 4-5- 2000, pp. 8-10, No. 249.

2. The words or Exchange Earner's Foreign Currency (EEFC) Account deleted by S.O. 301(E), dated 30-3-2001 (w.e.f. 30-3-2001).

3. The words or Exchange Earner's Foreign Currency (EEFC) Account deleted by S.O. 301(E), dated 30-3-2001 (w.e.f. 30-3-2001).

4. Ins. by S.O. 301(E), dated 30-3-2001 (w.e.f. 30-3-2001).

5. Ins. by G.S.R. 33(E), dated 15-1-2003 (w.e.f. 16-1-2003).

6. Subs. for (See Rule 3) by G.S.R. 512(E), dated 27-7-2005 (w.e.f. 28-7-2005).

7. Subs. by G.S.R. 397(E), dated 1-5-2003 (w.e.f. 14-5-2003).

8. Subs. for (See Rule 4) by G.S.R. 512(E), dated 27-7-2005 (w.e.f. 28-7-2005).

9. Subs. by S.O. 301(E), dated 30-3-2001 (w.e.f. 30-3-2001).

10. Ins. by G.S.R. 849(E), dated 27-10-2003 (w.e.f. 29-10-2003).

11. Ins. by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004). Earlier it was omitted by G.S.R. 442, dated 22-10-2002.

12. Omitted by S.O. 382(E), dated 5-5-2010 (w.r.e.f. 16-12-2009). Prior to omission it read as: 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 Ministry of Industry and Commerce

13. Omitted by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004). Prior to omission it read as: 10. Payment for securing Insurance for health from a company abroad Ministry of Finance (Insurance Division)

14. Omitted by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004). Prior to omission it read as: 1. Remittance by artiste e.g. wrestler, dancer, entertainer etc. (This restriction is not applicable to artistes engaged by tourism related organisations in India like ITDC, State Tourism Development Corporations etc. during special festivals or those artistes engaged by hotels in five star categories, provided the expenditure is met out of EEFC account);

15. Subs. by G.S.R. 349(E), dated 22-5-2009 (w.r.e.f. 20-12-2006).

16. Subs. by G.S.R. 349(E), dated 22-5-2009 (w.r.e.f. 30-4-2007).

17. Subs. by G.S.R. 731(E), dated 5-9-2003 (w.e.f. 11-9-2003).

18. Subs. by G.S.R. 731(E), dated 5-9-2003 (w.e.f. 11-9-2003).

19. Subs. by S.O. 301(E), dated 30-3-2001 (w.e.f. 30-3-2001).

20. Subs. by G.S.R. 731(E), dated 5-9-2003 (w.e.f. 11-9-2003).

21. Subs. by G.S.R. 397(E), dated 1-5-2003 (w.e.f. 14-5-2003).

22. Subs. by G.S.R. 731(E), dated 5-9-2003 (w.e.f. 11-9-2003).

23. Ins. by S.O. 301(E), dated 30-3-2001 (w.e.f. 30-3-2001).

24. Subs. by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004).

25. Omitted by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004). Prior to omission it read as: 12. Short term credit to overseas offices of Indian companies;

26. Omitted by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004). Prior to omission it read as: 13. Remittance for advertisement on foreign television by a person whose export earnings are less than Rs 10 lakhs during each of the preceding two years;

27. Omitted by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004). Prior to omission it read as: 14. Remittances of royalty and payment of lump sum fee under the technical collaboration agreement which has not been registered with Reserve Bank;

28. Subs. by G.S.R. 349(E), dated 22-5-2009 (w.r.e.f. 30-4-2007).

29. Omitted by G.S.R. 412(E), dated 10-7-2006 (w.e.f. 11-7-2006). Prior to omission it read as: 16. Remittance for purchase of trademark or franchise in India;

30. Ins. by G.S.R. 349(E), dated 22-5-2009 (w.r.e.f. 30-4-2007).

31. Omitted by S.O. 608(E), dated 13-9-2004 (w.e.f. 13-9-2004). Prior to omission it read as: 18. Remittance of hiring charges of transponders.