Rbi Approval To Banks On International Credit Cards

The Reserve Bank of India (RBI) has permitted banks to issue international credit cards to residents travelling abroad availing their basic travel quota (BTQ) up to $3,000 per annum.

The RBI has permitted residents to use these credit cards for all bonafide purposes, including making payments for purchases of articles for personal use within their foreign exchange entitlement.

However, import of goods purchased through credit cards into India will be governed by the baggage rules or Exim Policy currently in force.

However, the Reserve Bank of India has specified that the international credit cards cannot be used for purposes of going abroad for employment or emigration.

 

At present, the use of international credit cards by cardholders going abroad is already permitted for business visits, participation in seminars or conferences, study tours or specialised training, and medical treatment, as well as for payment of hotel bills, car rentals, telex or telephone charges, secretarial services, medical expenses, and purchase of tickets for travel to other countries in contingencies. In addition, residents are allowed to use credit cards for payment of subscriptions to foreign magazines or journals and for payment of access fees for internet related services at actuals without any monetary ceiling.

Residents travelling abroad are also permitted to make payments in rupees in India for purchase of Euro Rail passes or tickets, overseas telephone cards, etc. The facility of advance remittance for booking of hotel accomodation abroad out of the travellers entitlement is also available.