RBI relaxes International Credit Card rules

Following liberalisation of transactions relating to foreign exchange, Reserve Bank of India has announed that resident individuals who have foreign currency account with a bank in India or abroad can hold International Credit Card issued by overseas banks or other agencies.

The transaction incurred using the International Credit Card either in India or abroad will have to be paid out of funds held in such foreign currency account of the card holder or through remittances, if any, from India only through a bank where the card-holder has a current or savings account. The remittance for this purpose, should also be made directly to the card-issuing agency abroad, and not to a third party.

RBI however said that the credit limit to be given to the applicant is to be fixed by the card issuing bank and RBI will fix no monetary ceiling for remittances. However restriction on the use of credit card would apply for purchase of prohibited items, like lottery tickets, banned or proscribed magazines, participation in sweepstakes, payment for call back services, etc.