Amendments To Foreign Exchange Management (Current Account Transactions) Rules, 2000

The Ministry of Finance on May 16, 2023 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023 (“Amendment”) effectively bringing the payment made through International Credit Card by a resident individual outside India within the limit of USD 2,50,000/- (“LRS Limit”).

I . AMENDMENT:

As per Rule 5 of Foreign Exchange Management (Current Account Transactions) Rules, 2000 (“Current Accounts Rules”) any foreign exchange facility for the transactions specified in Schedule III of the Current Account Rules (i.e. gifts, travel expenses, medical expenses, emigration, education expenses etc.) shall require Reserve Bank of India's approval if the payment for such transactions breaches LRS Limit, subject to certain conditions, in a financial year.