Mumbai, Jan. 30: The Reserve Bank of India (RBI) has relaxed rules governing foreign exchange payments made by resident Indians through international credit cards while travelling abroad.
A person travelling abroad would not need RBIís prior permission for availing of foreign exchange towards expenses exceeding $ 10,000 per calendar year for private travel and $ 25,000 for business travel and also payments for international conferences / training/ medical treatment made through international credit cards.
Residents, individuals, as well as companies can avail of international credit card facility from any of the card issuers in India. The issuers according to their credit perception fix the credit limit available against such cards. The RBI clarified that there is no separate ceiling prescribed under the Foreign Exchange Management Act, on expenditure incurred through use of credit cards outside or within India.
The central bank added that in addition to travel-related expenditure abroad, international credit cards can also be used on the Net for any purpose for which exchange can be purchased from an authorised dealer in India.
This includes import of books, purchase of downloadable software or import of any other item permissible under the Exim Policy. There is no aggregate monetary ceiling separately prescribed for use of international credit cards through the internet.