The Finance Ministry of the Department of Economic Affairs amended the provision of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
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 has considered it necessary in the public interest amended the Foreign Exchange Management (Current Account Transactions) Rules, 2000, with effect from the 16th May, 2023.
The amendment putforth “Use of International Credit Card while outside India.— Nothing contained in rule 5 shall apply to the use of an International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India.”.
As per the amendment rule 5 of the act is not applicable to the use of International Credit cards used for making payments while visiting outside India. This move is significant to International Credit holders.
It was certified that by giving retrospective effect to the present notification, no one will be adversely affected.
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 notifications.
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