A.P. (DIR Series) Circular No.59

December 9, 2002

To

All Authorised Dealers in Foreign Exchange

Madam/Sirs,

Attention of authorised dealers is invited to A.P. (DIR Series) Circular No.53 dated June 27, 2002 relating to the use of International Credit Cards (ICCs) and the subsequent clarification issued vide A.P. (DIR Series) Circular No.40 dated November 5, 2002.

2. As per the existing instructions, NRIs/PIOs are required to settle charges on the use of ICCs, only out of inward remittances or balances held in their Non-Resident (External) Rupee Accounts (NRE) / Foreign Currency (Non-Resident) Accounts (Banks) (FCNR). On a review, it has since been decided to permit settlement of credit card charges out of funds held in the card holders’ Non- Resident (Ordinary) Rupee Accounts (NRO) as well. Accordingly, authorised dealers may allow debits to NRO accounts of their NRI/PIO constituents to the extent of the card limit for use of credit cards issued by banks in India . The debits shall also be subject to the conditions for use of the International Credit Cards by residents.

3. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.

4. Necessary amendments to the Foreign Exchange Management (Deposit) Regulations 2000 are being notified separately.

5. The Directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Yours faithfully,