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Date: 30-Jun-2023 Category: Extra Ordinary State: Union Government Country: India

Amendment in the Foreign Exchange Management (current Account Transanctions) Rules, 2000

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

What it means

  • The notification amends the Foreign Exchange Management (Current Account Transactions) Rules, 2000, to allow the use of international credit cards by individuals for expenses incurred while visiting outside India.

Key Changes

  • A new rule 7 is inserted after rule 6 in the Foreign Exchange Management (Current Account Transactions) Rules, 2000.
  • Rule 7 states that the restrictions in rule 5 do not apply to the use of international credit cards for payments made by individuals to meet expenses during their visits outside India.
  • The amendment is effective retrospectively from May 16, 2023.

Impact Analysis

Impact on Individuals

  • This provides greater convenience and flexibility for managing expenses while traveling internationally.

Impact on Banks and Financial Institutions

  • Banks should update their compliance manuals and train staff on the revised rules regarding international credit card usage.

Impact on Economy

  • The government has deemed this change necessary in the public interest, suggesting a belief that it will have a net positive effect.

Action Items

  • Monitor the impact of the amendment on international credit card usage and spending patterns.

Key Entities Referenced

Central Government: The authority issuing the notification and making the amendment to the rules. Reserve Bank of India (RBI): The RBI was consulted by the Central Government before making the amendment. Foreign Exchange Management Act, 1999: The principal legislation under which the notification is issued. Specifically, section 5 and section 46 are referenced. Foreign Exchange Management (Current Account Transactions) Rules, 2000: The specific rules being amended by this notification.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-30062023-246897 xxxGIDHxxx CG-DL-E-30062023-246897 xxxGIDExxx ऄसाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 381] नई ददल्ली, िुक्रिार, िनू 30, 2023/अषाढ़ 9, 1945 No. 381] NEW DELHI, FRIDAY, JUNE 30, 2023/ASHADHA 9, 1945 जित्त मत्रं ालय (अर्थथक काय य जिभाग) ऄजधसचू ना नई ददल्ली, 30 िून, 2023 सा.का.जन. 472(ऄ).—केंद्रीय सरकार, जिदेिी मुद्रा प्रबंध ऄजधजनयम, 1999 (1999 का 42) की धारा 5 और धारा 46 की उप-धारा (1) तथा उपधारा (2) के खंड (क) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए और भारतीय ररज़ि य बैंक के परामिय स,े लोकजहत में अिश्यक समझते हुए, जिदेिी मुद्रा प्रबंध (चालू खाता संव्यिहार) जनयम, 2000 में 16 मई, 2023 से जनम्नजलजखत संिोधन करती ह,ै ऄथायत:् 2. जिदेिी मुद्रा प्रबंध (चाल ू खाता संव्यिहार) जनयम, 2000 के जनयम 6 के पश्चात,् जनम्नजलजखत जनयम ऄंतःस्ट्थाजपत दकया िाएगा और 16 मई, 2023 से ऄंतःस्ट्थाजपत दकया गया समझा िाएगा ऄथायत्:- "7. भारत के बाहर रहते हुए ऄंतराष्ट्रयीय क्रेजडट काड यका उपयोग -- जनयम 5 में ऄतंर्थिष्ट कोई भी बात, भारत से बाहर दौरे पर ऐसे व्यजि द्वारा व्यय को पूरा करने के जलए व्यजि द्वारा भुगतान करने के जलए ऄंतराष्ट्रयीय क्रेजडट काडय के उपयोग पर लाग ूनहीं होगीI" [फा. सं. 1/5/2023- ईएम] सुरजभ िैन, संयुि सजचि (जित्तीय बािार) 4154 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] व्याख्यात्मक ज्ञापन रटप्पण : यह प्रमाजणत दकया िाता ह ै दक ऄजधसूचना को भतू लक्षी प्रभाि स े लाग ू करने स े कोई भी व्यजि प्रजतकूल रूप से प्रभाजित नहीं होगा। रटप्पण : मलू जनयम भारत के रािपत्र, ऄसाधारण, भाग II, खंड 3, उप-खंड (i) में सा.का.जन. 381(ऄ), तारीख 3 मई, 2000 द्वारा प्रकाजित दकए गए थ े और तत्पश्चात जनम्नजलजखत ऄजधसूचना संख्यांकों के द्वारा संिोजधत दकए गए थ:े - (i) सा.का.जन.663(ऄ), तारीख 09-08-2000; (ii) का. अ.301(ऄ) तारीख 30-03-2001; (iii) सा.का.जन.831(ऄ), तारीख 17-12-2002; (iv) सा.का.जन.33(ऄ), तारीख 15-01-2003; (v) सा.का.जन.397(ऄ), तारीख 01-05-2003; (vi) सा.का.जन.731(ऄ), तारीख 05-09-2003; (vii) सा.का.जन.849(ऄ), तारीख 27-10-2003; (viii) सा.का.जन.608(ऄ), तारीख 13-09-2004; (ix) सा.का.जन.512(ऄ), तारीख 27-07-2005; (x) सा.का.जन.412(ऄ), तारीख 10-07-2006; (xi) सा.का.जन.349(ऄ), तारीख 22-05-2009; (xii) सा.का.जन.382(ऄ), तारीख 05-05-2010; (xiii) सा.का.जन.426(ऄ), तारीख 26-05-2015; और (xiv) सा.का.जन.369(ऄ), तारीख 16-05-2023. MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 30th June, 2023 G.S.R. 472(E).—In exercise of the powers conferred by section 5 and sub-section (1) and clause (a) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in consultation with Reserve Bank of India, the Central Government having considered it necessary in the public interest hereby amends the Foreign Exchange Management (Current Account Transactions) Rules, 2000, with effect from the 16th May, 2023, namely:- 2. In the Foreign Exchange Management (Current Account Transactions) Rules, 2000 after rule 6, the following rule shall be inserted and shall be deemed to have been inserted with effect from the 16th day of May, 2023 namely: - “7. Use of International Credit Card while outside India.— 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.”. [F. No. 1/5/2023-EM] SURBHI JAIN, Jt. Secy. (Financial Market)[भाग II—खण् ड 3(i)] भारत का रािपत्र : ऄसाधारण 3 Explanatory Memorandum Note : It is certified that by giving retrospective effect to the present notification, no one will be adversely affected. Note : The principal rules were published in Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide G.S.R. 381(E), dated the 3rd May, 2000 and subsequently amended vide notification numbers - (i) G.S.R. 663(E), dt 09-08-2000; (ii) S.O. 301(E) dt 30-03-2001; (iii) G.S.R. 831(E), dt 17-12-2002; (iv) G.S.R. 33(E), dt 15-01-2003; (v) G.S.R. 397(E), dt 01-05-2003; (vi) G.S.R. 731(E), dt 05-09-2003; (vii) G.S.R. 849(E), dt 27-10-2003; (viii) G.S.R. 608(E), dt 13-09-2004; (ix) G.S.R. 512(E), dt 27-07-2005; (x) G.S.R. 412(E), dt 10-07-2006; (xi) G.S.R. 349(E), dt 22-05-2009; (xii) G.S.R. 382(E), dt 05-05-2010; (xiii) G.S.R. 426(E), dt 26-05-2015; and (xiv) G.S.R. 369(E), dt 16-05-2023 Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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