Enumerate the situations in which the drawal of foreign exchange is prohibited under the Foreign Exchange Management (Current Account Transactions) Rules, 2000.

CS Executive · Economic, Business and Commercial Laws · PYQS · June 2021
Enumerate the situations in which the drawal of foreign exchange is prohibited under the Foreign Exchange Management (Current Account Transactions) Rules, 2000.

Answer & Explanation:

Transactions which are prohibited under Foreign Exchange Management (Current Account Transaction) Rules are as under: Remittance out of lottery winnings. Remittance of income from racing/riding etc. or any other hobby. Remittance for purchase of lottery tickets, banned/proscribed magazines, football pools, sweepstakes, etc. Payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies. Remittance of dividend by any company to which the requirement of dividend balancing is applicable. Payment of commission on exports under Rupee State Credit Route, except commission up to 10% of invoice value of exports of tea and tobacco. Payment related to "Call Back Services" of telephones. Remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme.

Topics: Foreign Exchange Management (Current Account Transactions) Rules, 2000

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