Discuss the provisions for Liberalized Remittance Scheme with respect to remittances for making tour arrangements or for providing hotel accomodation for foreign tours.

Authorised Dealers may affect remittances at the request of agents in India who have tie-up arrangements with hotels/ agents etc., abroad for providing hotel accommodation or making other tour arrangements for travel from India, provided the Authorised Dealer is satisfied that the remittance is being made out of the foreign exchange purchased by the traveller concerned from an Authorised Person (including exchange drawn for private travel abroad) in accordance with the Rules, Regulations and Direction in force under Foreign Exchange Management Act. Authorised Dealer may open foreign currency accounts in the name of agents in India who have tie up arrangements with hotels/ agents, etc., abroad for providing hotel accommodation or making other tour arrangements for travellers from India provided: the credits to the account are by way of depositing: collections made in foreign exchange from travellers; and refunds received from outside India on account of cancellation of bookings/ tour arrangements etc., and the debits in foreign exchange are for making payments towards hotel accommodation, tour arrangements etc., outside India. Authorised Dealer may also allow tour operators to remit the cost of rail/road/water/transportation charges outside India without any prior approval from Reserve Bank, net of commission/mark up due to the agent. The sale of passes/ ticket in India can be made either against the payment in Indian Rupees or in foreign exchange released for visits abroad. In respect of consolidated tours arranged by travel agents in India for foreign tourists visiting India and neighbouring countries like Nepal, Bangladesh, Sri Lanka etc., against advance payments/ reimbursement through an Authorised Dealer, part of the foreign exchange received in India against such consolidated tour arrangement, may require to be remitted from India to these neighbouring countries for services rendered by travel agents and hoteliers in these countries. Authorised Dealer may allow such remittances after verifying that the amount being remitted to the neighbouring countries (inclusive of remittances, if any, already made against the tour) does not exceed the amount actually remitted to India and the country of residence of the beneficiary is not Pakistan.